Will Napco's (NSSC) iPhone App Grow in a Growing Security Market?
NAPCO Security Technologies, Inc. (Nasdaq: NSSC) is one of the world's leading manufacturers of technologically advanced electronic security equipment including intrusion and fire alarm systems, access control, and door locking systems.
Sales of electronic security products and systems in the United States are expected to increase 9.3 percent each year to $17 billion in 2014, according to a new study by market research firm Freedonia Group Inc. There are two significant drivers of this growth:
- Security is top of mind with individuals, corporate clients and governments these days which was encapsulated in the recent shooting U.S. Representative Gabrielle Giffords in Arizona. The Freedonia report notes that despite a decrease in crime rates, Americans believe the risk from criminal activity is high. This belief will ultimately drive the upgrading and installation of electronic security equipment along with technological improvements and price reductions.
- Wireless Applications will boost the security and the applications can be extended to iPhones, Blackberrys and other hand held devices which create a simplicity for consumers and a growing market for security companies.
NAPCO recently released their GEM-TEMP64 Indoor/Outdoor Temperature Sensor Module, which can monitor the temperature outside the home or inside the home. Room temperature can be displayed depending upon where the TEMP64 module is mounted. Before leaving their home a family would know to add a hat or scarf or if leaving for the day, to turn down the thermostat before exiting.
When an iRemote Module is installed in conjunction with the GEM-TEMP64 Module, the MyRemoteKeypad app will allow the temperature to be displayed on any smartphone or PC. MyRemoteKeypad application on Apple's iTunes for the iPhone provides real time access to the NAPCO Security Technologies security keypads. With this application, using a secure user id/password, the user can remotely access his/her Security device keypad.
From my own personal perspective, my wife has to drive up to Connecticut tomorrow to check on the heat at our weekend house during the current cold spell. She would much rather push a button from our apartment in NYC!
With NAPCO, my wife could look in remotely at her keypad from anywhere in the world via the internet or iPhone and make sure the room temperature being maintained is sufficient, preventing frozen/burst pipes.
Freedonia Group's "Electronic Security Systems" report also states that growth will be driven in large part by a strong rebound in capital investment spending from a low 2009 base and a tight credit environment.
NSSC is a stock to monitor in 2011.
ProActive Capital Indexes
See ProActive's Disclaimer