From 2020 to COVID-19. We are proud of our extraordinary performance, even in the face of major challenges in the supply chain environment. Our recurring services revenue continues to be very strong, up 41% in the first quarter compared to the same period last year, and based on recurring revenue in October 2021, our annual run rate is now 42.6 million$ is predicted. Hardware sales continue to recover, up 31% to $20.8 million, compared to last year’s $15.9 million impacted by COVID-19. Recurring Services gross margin remained strong at 86%, compared to 84% in the same period last year.
The company, one of the leading manufacturers and designers of high-tech electronic security devices and a leading provider of wireless subscription services for intrusion and fire detection systems and security solutions for schools, today announced the first quarter of fiscal 2022 announced its financial results. Chairman and President Richard Soloway commented: (A record-breaking first quarter, even if you exclude his $3.9 million debt service income included in net income).
Highlights
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Furthermore, the commercial fire alarm business is a “non-discretionary mandate business.” This means that fire alarm systems are mandatory and must always function in accordance with fire safety regulations in order to obtain a building occupancy certificate. Due to the substantial nature and high profitability of this sector, the commercial fire detection business continues to be one of the key areas in which we focus our resources.
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Overall gross margin increased 26% to $13.4 million, while hardware gross margin declined to 22%. This is primarily due to increased shipping and parts costs related to current global supply chain issues, and a shift in product mix to more Starlink radios. of a company (generating revenue from regular services). Our commercial radio and fire alarm business and related RMR (“Recurring Monthly Revenue”) have not been significantly impacted by COVID-19 as we need to maintain the security of our commercial buildings.
While supply chain constraints and shortages of electronic and other components have slowed the pace of revenue recognition, his NAPCO delivery performance during this extremely challenging COVID time has been excellent, with many competitors and other Much more than the manufacturing companies. Although there is a higher than average backlog of orders, especially for electronics, which could continue into 2022, the strong performance in the first quarter indicates that NAPCO proactively manages these logistical challenges and This is because we continue to focus on maintaining a system that meets needs.