NAPCO Security Technologies

NAPCO Security Technologies

NAPCO Security Technologies traces its roots to 1969, when it began selling electronic controls for garage-door openers before pivoting into the commercial and residential security market. Founder and CEO Richard Soloway took the company public in 1972, and it has remained an independent, family-run operation ever since — operating four manufacturing plants in the Dominican Republic alongside its Amityville, New York headquarters. The firm designs and manufactures its own printed circuit boards, plastic injection molds, and metal stampings, giving it an unusual degree of vertical integration in a market dominated by assemblers. The company produces a full stack of physical security hardware: fire and intrusion alarms, electronic locking systems, access-control panels, and a growing line of wireless and cloud-connected devices under the iBridge and StarLink brands. Its customer base spans small-business alarm installers, national integrators, government agencies, and K-12 school districts. NAPCO's recurring revenue comes through its StarLink cellular alarm communicators, which replaced traditional copper phone lines with wireless connections for roughly 500,000 monitored accounts. The firm competes against Honeywell, Bosch, and DMP, but its direct-to-installer model and deep relationships with thousands of independent dealers create a defensive moat. NAPCO's unusual structure as a publicly traded, founder-led hardware company — not a family office or fund — means its capital allocation decisions are governed by its board and corporate treasury. In fiscal 2024, the company reported net sales of approximately $178 million, with gross margins consistently above 40% and a debt-free balance sheet. Soloway, now in his eighties, holds a controlling equity stake, and his son Michael Soloway serves as Senior Vice President of Engineering. The family's wealth is tied to the company's dividend and share performance rather than pooled family-office assets. NAPCO's structural differentiator is its vertically integrated Dominican Republic manufacturing base. Unlike competitors who outsource production to Asia, NAPCO owns its factories and employs over 1,500 workers locally, giving it control over component quality, lead times, and margins. This model allows rapid iteration on hardware — adding wireless chipsets, encryption, and cloud features to legacy security panels — and protects the company from supply-chain disruption in ways its peers cannot replicate.