Rosen Law Firm Encourages NAPCO Security Technologies, Inc. Investors to Inquire About Securities Class Action Investigation
Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of NAPCO Security Technologies, Inc. (NASDAQ: NSSC) resulting from allegations that NAPCO may have issued materially misleading business information to the investing public.
So What: If you purchased NAPCO securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
What to do next: To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=34463 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
What is this about: On February 3, 2025, Investing.com published an article entitled 'NAPCO Security stock tumbles after Q2 sales decline.' The article stated that '[s]hares of NAPCO Security Technologies,, Inc. [. . .] plummeted 27% following the announcement of its fiscal 2025 second quarter results, which revealed a decrease in net sales and diluted earnings per share (EPS) compared to the same period last year.' The article further stated that 'Richard Soloway, Chairman and CEO, attributed the equipment revenue shortfall to lagging sales in intrusion and access alarm products and door locking devices. The company cited specific issues with two of its larger distributors; one reduced purchases to cut inventory levels, and another underwent a management restructuring that delayed transaction approvals. Soloway expressed disappointment in the overall equipment sales but remains optimistic about future improvements.'
On this news, NAPCO shares fell 26.6% on February 3, 2025.
Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
CONTACT: Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
SOURCE: The Rosen Law Firm, P.A.
Copyright Business Wire 2025.
PUB: 02/07/2025 08:22 PM/DISC: 02/07/2025 08:22 PM
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The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the Company's website at: Safe Harbor Statement Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts, included or incorporated in this presentation could be deemed forward-looking statements, particularly statements that reflect the expectations or beliefs of Daktronics, Inc. (the 'Company,' 'Daktronics,' 'we,' or 'us') concerning future events or our future financial performance. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by discussions of strategy, plans, or intentions or by the use of words such as 'may,' 'would,' 'could,' 'should,' 'will,' 'expect,' 'estimate,' 'anticipate,' 'believe,' 'intend,' 'plan,' 'forecast,' 'project,' 'predict,' 'potential,' 'continue,' or 'intend,' the negative or other variants of such terms, or other comparable terminology. The Company cautions that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations as a result of various factors, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, the imposition of tariffs, trade wars, the availability and costs of raw materials, components, and shipping services, geopolitical and governmental actions, and other risks described in the Company's Annual Report on Form 10-K for its 2024 fiscal year (the 'Form 10-K') and in other reports filed with or furnished to the U.S. Securities and Exchange Commission (the 'SEC') by the Company. You should carefully consider the trends, risks, and uncertainties described in this presentation, the Form 10-K, and other reports filed with or furnished to the SEC by the Company before making any investment decision with respect to our securities. If any of these trends, risks, or uncertainties continues or occurs, our business, financial condition, or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. Forward-looking statements are made in the context of information available as of the date of this news release and are based on our current expectations, forecasts, estimates, and assumptions. The Company undertakes no obligation to update or revise such statements to reflect circumstances or events occurring after this presentation except as may be required by applicable law. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. For more information contact:INVESTOR RELATIONS:Howard Atkins, Acting Chief Financial OfficerTel (605) 692-0200Investor@ LHA Investor Relations Carolyn Capaccio / Jody Burfening DAKTIRTeam@ Daktronics, Inc. and SubsidiariesConsolidated Statements of Operations(in thousands, except per share amounts)(unaudited) Three Months Ended Year Ended April 26, 2025 April 27, 2024 April 26, 2025 April 27, 2024 Net sales $ 172,551 $ 215,880 $ 756,477 $ 818,083 Cost of sales 129,406 160,501 560,990 595,640 Gross profit 43,145 55,379 195,487 222,443 Operating expenses: Selling 15,200 15,114 60,011 56,954 General and administrative 19,727 11,555 63,498 42,632 Product design and development 9,958 9,283 38,860 35,742 44,885 35,952 162,369 135,328 Operating (loss) income (1,740 ) 19,427 33,118 87,115 Nonoperating income (expense): Interest income (expense), net 637 (466 ) 1,347 (3,418 ) Change in fair value of convertible note 2,848 (4,980 ) (22,521 ) (16,550 ) Other expense and debt issuance costs write-off, net (15,183 ) (6,814 ) (17,795 ) (13,096 ) (Loss) income before income taxes (13,438 ) 7,167 (5,851 ) 54,051 Income tax (benefit) expense (4,013 ) 4,649 4,270 19,430 Net (loss) income $ (9,425 ) $ 2,518 $ (10,121 ) $ 34,621 Weighted average shares outstanding: Basic 49,516 46,257 47,587 45,901 Diluted 49,516 46,872 47,587 46,543 (Loss) earnings per share: Basic $ (0.19 ) $ 0.05 $ (0.21 ) $ 0.75 Diluted $ (0.19 ) $ 0.05 $ (0.21 ) $ 0.74 Daktronics, Inc. and SubsidiariesConsolidated Balance Sheets(in thousands)(unaudited) April 26, 2025 April 27, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 127,507 $ 81,299 Restricted cash — 379 Accounts receivable, net 92,762 117,186 Inventories 105,839 138,008 Contract assets 41,169 55,800 Current maturities of long-term receivables 2,437 298 Prepaid expenses and other current assets 8,520 8,531 Income tax receivables 3,217 448 Total current assets 381,451 401,949 Property and equipment, net 73,884 71,752 Long-term receivables, less current maturities 1,030 562 Goodwill 3,188 3,226 Intangibles, net 568 840 Debt issuance costs, net 1,289 2,530 Right of use, investment in affiliates, and other assets 9,378 21,163 Deferred income taxes 32,104 25,862 TOTAL ASSETS $ 502,892 $ 527,884 Daktronics, Inc. and SubsidiariesConsolidated Balance Sheets (continued)(in thousands)(unaudited) April 26, 2025 April 27, 2024 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 1,500 $ 1,500 Accounts payable 46,669 60,757 Contract liabilities 69,050 65,524 Accrued expenses 41,705 43,028 Warranty obligations 12,706 16,540 Income taxes payable 375 4,947 Total current liabilities 172,005 192,296 Long-term warranty obligations 23,124 21,388 Long-term contract liabilities 18,421 16,342 Other long-term obligations 6,839 5,759 Long-term debt, net 10,487 53,164 Deferred income taxes 85 143 Total long-term liabilities 58,956 96,796 STOCKHOLDERS' EQUITY: Preferred Shares, $0.00001 par value, authorized 5,000 shares; 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The term free cash flow is not defined under accounting principles generally accepted in the United States of America ("GAAP") and is not a measure of operating income, cash flows from operating activities or other GAAP figures and should not be considered alternatives to those computations. Free cash flow is intended to provide information that may be useful for investors when assessing period to period results. Reconciliation of Adjusted Operating Income*(in thousands)(unaudited) Three Months Ended Twelve Months Ended April 26,2025 Percent of net sales April 27,2024 Percent of net sales April 26,2025 Percent of net sales April 27,2024 Percent of net sales Operating (loss) income (GAAP Measure) $ (1,740 ) (1.0 )% $ 19,427 9.0 % $ 33,118 4.4 % $ 87,115 10.6 % Corporate governance expenses 3,881 2.3 — — 6,825 0.9 — — Management transition 2,614 1.5 — — 2,614 0.3 — — Consultant related expenses associated with business transformation initiatives 1,031 0.6 — — 7,085 0.9 — — Adjusted operating income (non-GAAP measure) $ 5,786 3.4 % $ 19,427 9.0 % $ 49,642 6.6 % $ 87,115 10.6 % * In evaluating its business, Daktronics considers and uses adjusted operating income as a key measure of its operating performance. The term adjusted operating income is not defined under GAAP and is not a measure of operating income, cash flows from operating activities, or other GAAP figures and should not be considered alternatives to those computations. We define non-GAAP adjusted operating income as operating (loss) income plus unique expenses, for example, expenses related to business and digital transformation consultant costs and legal costs associated with special corporate governance matters. Management believes non-GAAP adjusted operating income is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP adjusted operating income may not be comparable to similarly titled definitions used by other companies. The table above reconciles non-GAAP adjusted operating income to comparable GAAP financial measures. Reconciliation of Adjusted Net Income*(in thousands)(unaudited) Three Months Ended Twelve Months Ended April 26, 2025 April 27, 2024 April 26, 2025 April 27, 2024 Net (loss) income $ (9,425 ) $ 2,518 $ (10,121 ) $ 34,621 Change in fair value of convertible note (2,848 ) 4,980 22,521 16,550 Allowance for credit losses on affiliate loan 15,480 — 15,480 — Corporate governance expenses, net of taxes 2,872 — 5,050 — Management transition, net of taxes 1,934 — 1,934 — Consultant related expenses associated with business transformation initiatives, net of taxes 763 — 5,243 — Debt issuance costs expensed due to fair value of convertible note, net of taxes — — — 2,149 Equity method affiliates impairment — 5,268 — 6,359 Adjusted net income $ 8,776 $ 12,766 $ 40,107 $ 59,679 * Adjusted net income using 26% tax rate. We disclose adjusted net income as a non-GAAP financial measurement in order to report our results exclusive of items that are not core to our operating business. We believe presenting this non-GAAP financial measurements provide investors with a consistent way to analyze our performance. Reconciliation of Long-term Debt(in thousands)(unaudited) Long-term debt consists of the following: April 26, 2025 April 27, 2024 Mortgage 12,375 13,875 Convertible note — 25,000 Long-term debt, gross 12,375 38,875 Debt issuance costs, net (388 ) (761 ) Change in fair value of convertible note — 16,550 Current portion (1,500 ) (1,500 ) Long-term debt, net $ 10,487 $ 53,164
Axios
38 minutes ago
- Axios
Exclusive: Expect more "reshuffling" in Army's transformation
Thousands of feet in the air, returning to D.C. from Georgia, U.S. Army Secretary Dan Driscoll told Axios of his housecleaning ambitions — the "cobwebs and bullsh*t" that need sweeping. "Complacency right now is going to be rewarded with failure and death in the short- to medium-term," he said. The big picture: The Army Transformation Initiative's opening salvo landed May 1 with the backing of Driscoll and others, including Chief of Staff Gen. Randy George and Defense Secretary Pete Hegseth. It jarred Congress and industry alike with its cuts (M10 Booker), consolidation (Futures and Training and Doctrine commands) and urgency. A second push, colloquially known as "2.0," is now in the works. It focuses on "procurement, reorganizing and reshuffling, and firing," Driscoll said, as well as funding "good ideas" plucked from the minds of soldiers and small- and medium-sized businesses. Nothing is sacred, it appears. "We should be held accountable if we're not willing to look at everything." Driving the news: Driscoll spent Monday at Fort Stewart, in the swampy southwest of Savannah, inspecting armored vehicles and drones and workout regimens and barracks. He sought feedback from troops on what desperately needs fixing — and warned them of how radically different war looks today. Axios was the only media in tow. Zoom in: Fort Stewart is home to the 3rd Infantry Division. Two armored brigade combat teams there are involved with Transforming in Contact, meant to quickly arm soldiers and test commercially available kit. That initiative predates and informs ATI. Soldiers are experimenting with robotics to clear battlefield obstacles, aerial drones to make first contact with an enemy, and tools to better understand and leverage the electromagnetic spectrum, which is key to communications and weapons guidance. Friction point: Congress has not been happy with the level of detail the Army has thus far provided concerning its overhaul, said to save $48 billion over five years. "We don't serve either the taxpayer or the common defense with blank checks for vaguely defined priorities," Sen. Mitch McConnell (R-Ky.) said at a June 18 appropriations hearing. "We want to see the analysis behind the specific bets the Army wants to place on ATI," he added. "We want to understand the second-order effects on industry, other services and allies." The other side: Driscoll promised to show the service's work in 10 days. The information had not been relayed as of Monday evening. The bottom line: "We believe the decision to not act is actually riskier than the decision to act and get it wrong," Driscoll said. The Russia-Ukraine war, a potential Chinese invasion of Taiwan and a constant simmer in the Middle East consume Beltway thinking. "The existential factors and threats that are occurring today make it a very credible statement to say 'We're either going to do this in a wartime footing or we're going to do it in a pre-wartime footing,'" Driscoll added.
