Our Alarm Lock and Marks locking hardware lines continue to see growth in school and classroom security, healthcare, and retail loss-prevention, as well as in multi-dwelling commercial and residential applications. We remain focused on further penetrating each of these markets.
We recently announced the introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home. We anticipate that Prima will address an important mass segment of the security market, including residential and small business systems. With built-in Wi-Fi/cellular radio communications, customer alert notifications, and video and smart home subscription options for each -installed system, the security dealer, as well as the Company, can add more recurring-revenue generating accounts.
NAPCO's record-breaking results for Q1 of fiscal year 2024, was primarily the result of the continued growth and profitability from recurring revenues as well as the strong sales from our Alarm Lock and Marks locking product lines. Radio sales have continued to slow down when compared to last year's first quarter, when the impending 3G Verizon sunset was rapidly approaching. As fiscal 2024 progresses, we expect radio sales to continue to be a key contributor to our hardware sales and continue to lead to the continued growth of our highly profitable recurring revenues."
Mr. Soloway concluded, "As we begin fiscal year 2024, we are encouraged with the improved gross margin for hardware sales of 28%, and, based on historical seasonal trends, we believe this could improve further as the fiscal year progresses. Our net income margin and Adjusted EBITDA* margin of 25% and 31%, respectively, indicates the financial strength of our business. We are pleased to continue our dividend program and we will be paying another dividend of $0.08 per share on December 22, 2023. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technical superiority, and strong profitability, for the rest of fiscal 2024 and beyond".
Financial Results
Net sales for the quarter increased 6% to $41.7 million (the highest Q1 in the Company's history), as compared to $39.5 million for the same period one year ago. Research and development costs for the quarter remained relatively constant at $2.4 million or 6% of sales as compared to $2.4 million or 6% of sales for the same period a year ago. Selling, general and administrative expenses for the quarter remained relatively constant at $8.4 million or 20% of net sales, as compared to $8.5 million, or 22% of sales for the same period last year.
Operating income for the quarter increased 222% to $11.6 million as compared to $3.6 million for the same period last year. Net income for the quarter increased 239% to a Q1 record $10.5 million or $0.28 per diluted share as compared to $3.1 million or $0.08 per diluted share for the same period last year and represents 25% of net sales.
Adjusted EBITDA* for the quarter increased 174% to a Q1 record $12.9 million, or $0.35 per diluted share, as compared to $4.7 million, or $0.13 per diluted share for the same period last year and equates to an Adjusted EBITDA* margin of 31%.
Balance Sheet Summary
At September 30, 2023, the Company had $74.6 million in cash and cash equivalents, other investments and marketable securities as compared to $66.7 million as of June 30, 2023. Working capital (defined as current assets less current liabilities) was $115.9 million at September 30, 2023 as compared with working capital of $111.7 million at June 30, 2023. Current ratio (defined as current assets divided by current liabilities) was 6.3:1 at September 30, 2023, and 6.7:1 at June 30, 2023.
Other
The Audit Committee of the Board of Directors of the Company has approved the engagement of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the fiscal year ending June 30, 2024, subject to the execution of an engagement letter. The effective date of Deloitte's appointment will be immediately following the filing of the Company's Form 10-Q for the quarter ending September 30, 2023. As previously reported, the Committee dismissed Baker Tilly as the Company's independent registered public accounting firm as of the aforementioned effective date.
Conference Call Information
Management will conduct a conference call at 11 a.m. ET today, November 6, 2023 in order to participate please go to the Investor Relations section of Company's website at https://investor.napcosecurity.com. Alternatively, interested parties may participate in the call by dialing, in the (US) 1-877-550-1875 or for international callers, 1-848-488-9180. A replay of the webcast will be available on the Investor Relations section of the Company's website.