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NAPCO Reports Record Revenues, Net Income and Adjusted EBITDA* for Fiscal 2024

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-Net Sales for the Quarter Increase 13% to a Quarterly Record $50.3 Million

-Net Income for the Quarter Increases 28% to a Quarterly Record $13.5 Million

-Adjusted EBITDA* for the Quarter Increases 18% to $15.4 Million

-4th Quarter Recurring Service Revenues Increase 27% to $20.3 Million With a Gross Margin of 90%-

-Net Sales for the Year Increase 11% to $188.8 Million

-Net Income for the Year Increases 84% to $49.8 Million

-Adjusted EBITDA for the Year Increases 72% to $58.9 Million

-Board Declares Quarterly Dividend of $0.125 per share-

AMITYVILLE, N.Y., Aug. 26, 2024 /PRNewswire/ — NAPCO Security Technologies, Inc. (NASDAQ: NSSC), one of the leading manufacturers and designers of high-tech electronic security equipment, wireless communication devices for intrusion and fire alarm systems and the related recurring service revenues as well as a provider of school safety solutions, today announced financial results for its fourth quarter and fiscal year ended June 30, 2024.

Financial Highlights:

Net sales for the quarter increased 13% to $50.3 million (the highest quarterly sales in the Company’s history) as compared to $44.6 million for the same period last year, and net sales for the year increased 11% to a record $188.8 million as compared to $170.0 million for the same period last year.Recurring service revenue (“RSR”) for the quarter increased 27% to $20.3 million as compared to $16.1 million for the same period last year, and for the year increased 26% to $75.7 million as compared to $59.9 million last year. RSR had a prospective annual run rate of approximately $84 million based on July 2024 recurring service revenues.Gross margin for RSR increased to 90.4% and 90.5% for the quarter and the year ended June 30, 2024 as compared to 89% and 89%, respectively, for the same periods last year.Gross margin for equipment revenue was 31.4% and 29.4% for the quarter and year ended June 30, 2024 as compared to 30.5% and 18.0%, respectively for the same periods last year.Net income for the quarter increased 28% to a quarterly record $13.5 million as compared to $10.6 million for the same period a year ago. Net income for the year ended June 30, 2024 increased 84% to a twelve month record $49.8 million as compared to $27.1 million for the same period last year.Earnings per share (diluted) for the quarter increased 28% to $0.36 as compared to $0.28 for the same period a year ago. Earnings per share (diluted) for the year ended June 30, 2024 increased 84% to $1.34 as compared to $0.73 for the same period last year.Adjusted EBITDA* for the quarter increased 18% to $15.4 million as compared to $13.0 million for the same period a year ago. Adjusted EBITDA* for the year ended June 30, 2024 increased 72% to a record $58.9 million as compared to $34.3 million for the same period last year.Adjusted EBITDA per share (diluted)* for the quarter increased 18% to $0.41 as compared to $0.35 for the same period a year ago. Adjusted EBITDA per share (diluted)* for the year ended June 30, 2024 increased 71% to $1.59 per diluted share as compared to $0.93 for the same period last year.Cash and cash equivalents, other investments and marketable securities were $97.7 million at June 30, 2024 as compared to $66.7 million at June 30, 2023, a 46% increase. The Company had no debt as of June 30, 2024.Cash Provided by Operating Activities for the year ended June 30, 2024 was $45.4 million as compared to $24.7 million for the same period last year.Robust net income, Adjusted EBITDA, and growing cash reserves demonstrating strong financial health of our business, is allowing us to increase our quarterly dividend to $0.125 per share, representing a 25% sequential increase.  This next dividend will be paid on October 3, 2024 to shareholders of record on September 12, 2024.

Richard Soloway, Chairman and CEO, commented, “Fiscal 2024 concluded with record revenue and net income for both the 4th quarter and the full fiscal 2024 year ending June 30, 2024. The 4th quarter sales of $50.3 million was the fifteenth consecutive quarter of record sales for a quarterly reporting period. Our record quarterly net income of $13.5 million represents 27% of sales. Adjusted EBITDA was $15.4 million for Q4 and $58.9 million for the full fiscal year and equate to a 31% EBITDA margin. Equipment revenue grew at 5% for the quarter, with gross margins on such sales sequentially increasing to 31% as compared to 29% in each of the last two quarters. Recurring service revenues, which increased 27% in Q4, was a major contributor to the year-over-year overall sales and earnings growth and represents 40% of total revenue. Gross margin for recurring service revenues remained strong at 90% and when combined with gross margin on equipment revenues of 31%, the total gross margins for Q4 amounted to 55%, which compared to 52% for last year’s Q4.

We were also pleased with the increase in the recurring service revenues annual run rate, which increased to $84 million based on July 2024 recurring service revenues, compared to an annual run rate of $81 million based on April 2024 recurring service revenues.

Our balance sheet continues to get stronger, with cash and cash equivalents, other investments and marketable securities increasing 46% to $97.7 million as compared to $66.7 million at June 30, 2023, We have no debt and the net cash provided by operating activities for the twelve months ended June 30, 2024 was also strong, amounting to $45.4 million, an 84% increase over last year’s level of 24.7 million.

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. Locking sales in Q4 grew approximately 21% compared to last year and approximately 8% compared to Q3 and represents 71% of hardware sales. We continue to remain focused on further penetrating each of these markets.

Our recent introduction of Prima by NAPCO, a new All-in-One Panel for security, fire, video and connected home with a 5-minute installation, remains a very important focus to the Company.  Our goal is for Prima to 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 service revenue generating accounts.

NAPCO’s record results for Q4 and fiscal year 2024, was primarily the result of the continued growth and profitability from recurring service revenues as well as the strong sales from our Alarm Lock and Marks locking product lines. Radio sales were down 5% sequentially and 10% as compared to Q4 last year due to the continued effect of the sunsetting of 3G technology and existing radio inventory levels at some of our distributors.  Radios represent 59% of Intrusion and Access Alarm Products sales and we expect inventory levels at distributors to continue to reduce and radio sales to continue to be a key contributor to our hardware sales and lead to the continued growth of our highly profitable recurring service revenues.”

Mr. Soloway concluded, “Fiscal 2024 was an amazing record-breaking year where we generated net income of $49.8 million, Adjusted EBITDA* of $58.9 million and an Adjusted EBITDA* margin of 31%. But as I have said before, there is more work to be done.  While we continue to be encouraged with the gross margin for hardware sales of 31.4%, we believe this should improve further in fiscal 2025 and beyond. Our strong net income Adjusted EBITDA* and growing cash, indicate the financial strength of our business. As such, we are pleased to continue our dividend program and we will be increasing the quarterly dividend to $0.125 per share payable on September 24, 2024. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technical superiority, and strong profitability, for fiscal 2025 and beyond”.

Financial Results

Net sales for the quarter increased 13% to $50.3 million (the highest quarterly sales in the Company’s history), as compared to $44.6 million for the same period one year ago. Net sales for the year ended June 30, 2024 increased 11% to a twelve month record $188.8 million, as compared to $170 million for the same period one year ago. Research and development costs for the quarter increased 28% to $3.0 million, or 6% of net sales, as compared to $2.4 million or 5% of net sales for the same period a year ago. Research and development costs for the year ended June 30, 2024 increased 15% to $10.8 million, or 6% of net sales, as compared to $9.3 million or 5% of net sales for the same period a year ago. Selling, general and administrative expenses for the quarter increased 22% to $10.9 million or 22% of net sales, as compared to $8.9 million, or 20% of net sales for the same period last year. Selling, general and administrative expenses for the year ended June 30, 2024 increased 11% to $37.1 million or 20% of net sales, as compared to $33.6 million, or 20% of net sales for the same period last year.

Operating income for the quarter increased 18% to $14.0 million as compared to $11.8 million for the same period last year. Operating income for the year ended June 30, 2024 increased 77% to $53.8 million as compared to $30.3 million for the same period last year. Net income for the quarter increased 28% to a quarterly record $13.5 million, or $0.36 per diluted share, as compared to $10.6 million, or $0.28 per diluted share, for the same period last year and represents 27% of net sales. Net income for the year ended June 30, 2024 increased 84% to a twelve month record of $49.8 million or $1.34 per diluted share as compared to $27.1 million or $0.73 per diluted share for the same period last year and represents 26% of net sales.

Adjusted EBITDA* for the quarter increased 18% to $15.4 million, or $0.41 per diluted share, as compared to $13.0 million, or $0.35 per diluted share for the same period last year and equates to an Adjusted EBITDA* margin of 31%. Adjusted EBITDA* for the twelve months ended June 30, 2024 increased 72% to a record $58.9 million, or $1.59 per diluted share, as compared to $34.3 million, or $0.93 per diluted share for the same period last year and equates to an Adjusted EBITDA* margin of 31%.

Balance Sheet Summary

As of June 30, 2024, the Company had $97.7 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 $146.5 million at June 30, 2024 as compared with working capital of $111.7 million at June 30, 2023. Current ratio (defined as current assets divided by current liabilities) was 7.6:1 at June 30, 2024, and 6.7:1 at June 30, 2023.

Conference Call Information

Management will conduct a conference call at 11 a.m. ET today, August 26, 2024, in order to participate please go to the Investor Relations section of Company’s website at https://investor.napcosecurity.com or the webcast URL use https://app.webinar.net/ZjmeNQvqWAQ.  Alternatively, interested parties may participate in the call by dialing, in the (US) 1-800-836-8184 or for international callers, 1-646-357-8785. A replay of the webcast will be available on the Investor Relations section of the Company’s website.

About NAPCO Security Technologies, Inc.

NAPCO Security Technologies, Inc., is one of the leading manufacturers and designers of high-tech electronic security devices, wireless recurring communication services for intrusion and fire alarm systems as well as a provider of school safety solutions, The Company consists of four Divisions: NAPCO, plus three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for innovation, technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic security market. For additional information on NAPCO, please visit the Company’s web site at http://www.napcosecurity.com.

Safe Harbor Statement

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, but are not limited to, statements relating to the impact of COVID-19 pandemic; supply chain challenges and developments; the growth of recurring service revenues and annual run rate; the strength of our balance sheet; our expectations regarding future results; the introduction of new access control and locking products; the opportunities for school security products; business trends , including the replacement of 3G radios, and our ability to execute our business strategies. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those risk factors set forth in the Company’s filings with the Securities and Exchange Commission, such as our annual report on Form 10-K and quarterly reports on Form 10-Q. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.

*Non-GAAP Financial Measures

Certain non-GAAP measures are included in this press release, including non-GAAP operating income, Adjusted EBITDA and Adjusted EBITDA per share (diluted). We define Adjusted EBITDA as GAAP net income plus income tax expense, net interest expense, non-cash stock-based expense, non-recurring legal expense, other non-recurring income and depreciation and amortization expense. Non-GAAP operating income does not include amortization of intangibles or stock-based compensation expense. These non-GAAP measures are provided to enhance the user’s overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO’s core operating performance and in comparing our results of operations on a consistent basis from period to period. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures set forth above.

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

June 30, 2024

June 30, 2023

(in thousands, except share data)

CURRENT ASSETS

Cash and cash equivalents

$

65,341

$

35,955

Investments – other

26,980

25,660

Marketable securities

5,398

5,136

Accounts receivable, net of allowance for credit losses of $32 and $131 as of June 30, 2024
and June 30, 2023, respectively

31,898

26,069

Inventories

34,804

35,062

Income tax receivable

73

75

Prepaid expenses and other current assets

4,269

3,402

Total Current Assets

168,763

131,359

Inventories – non-current

15,109

13,287

Property, plant and equipment, net

9,077

9,308

Intangible assets, net

3,602

3,939

Deferred income taxes

5,428

2,652

Operating lease – Right-of-use asset

5,487

5,797

Other assets

286

312

TOTAL ASSETS

$

207,752

$

166,654

CURRENT LIABILITIES

Accounts payable

$

7,977

$

8,061

Accrued expenses

10,345

8,079

Accrued salaries and wages

3,907

3,546

Total Current Liabilities

22,229

19,686

Accrued income taxes

1,122

1,110

Operating lease liability

5,512

5,689

TOTAL LIABILITIES

28,863

26,485

COMMITMENTS AND CONTINGENCIES (Note 14)

STOCKHOLDERS’ EQUITY

Common Stock, par value $0.01 per share; 100,000,000 shares authorized as of June 30,
2024 and June 30, 2023; 39,768,186 and 39,663,812 shares issued; and 36,874,471 and
36,770,097 shares outstanding, respectively.

398

397

Additional paid-in capital

23,712

21,553

Retained earnings

174,300

137,740

Less: Treasury Stock, at cost (2,893,715 shares)

(19,521)

(19,521)

TOTAL STOCKHOLDERS’ EQUITY

178,889

140,169

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

207,752

$

166,654

 

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended June 30, 

2024

2023

2022

(in thousands, except for share and per share data)

Net sales:

Equipment revenues

$

29,938

$

28,551

$

30,532

Service revenues

20,392

16,107

12,697

50,330

44,658

43,229

Cost of sales:

Equipment-related expenses

20,530

19,856

22,394

Service-related expenses

1,955

1,768

1,611

22,485

21,624

24,005

Gross Profit

27,845

23,034

19,224

Operating expenses:

Research and development

3,027

2,364

2,106

Selling, general, and administrative expenses

10,854

8,861

8,924

Total Operating Expenses

13,881

11,225

11,030

Operating Income

13,964

11,809

8,194

Other income:

Interest and other income (expense), net

762

382

(181)

Income before Provision for Income Taxes

14,726

12,191

8,013

Provision for Income Taxes

1,192

1,626

476

Net Income

$

13,534

$

10,565

$

7,537

Income per share:

Basic

$

0.37

$

0.29

$

0.21

Diluted

$

0.36

$

0.28

$

0.20

Weighted average number of shares outstanding:

Basic

36,939,000

36,827,000

36,760,000

Diluted

37,232,000

37,137,000

36,879,000

 

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Year Ended June 30, 

2024

2023

2022

(in thousands, except for share and per share data)

Net sales:

Equipment revenues

$

113,071

$

110,062

$

97,612

Service revenues

75,749

59,935

45,981

188,820

169,997

143,593

Cost of sales:

Equipment-related expenses

79,862

90,197

78,471

Service-related expenses

7,204

6,567

5,966

87,066

96,764

84,437

Gross Profit

101,754

73,233

59,156

Operating expenses:

Research and development

10,763

9,328

8,024

Selling, general, and administrative expenses

37,173

33,580

32,907

Total Operating Expenses

47,936

42,908

40,931

Operating Income

53,818

30,325

18,225

Other income:

Interest and other income (expense), net

2,568

903

(283)

Gain on extinguishment of debt

3,904

Income before Provision for Income Taxes

56,386

31,228

21,846

Provision for Income Taxes

6,568

4,101

2,247

Net Income

$

49,818

$

27,127

$

19,599

Income per share:

Basic

$

1.35

$

0.74

$

0.53

Diluted

$

1.34

$

0.73

$

0.53

Weighted average number of shares outstanding:

Basic

36,812,000

36,741,000

36,725,000

Diluted

37,066,000

37,005,000

36,867,000

 

NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Fiscal Year ended June 30, 

2024

2023

2022

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

49,818

$

27,127

$

19,599

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,163

1,930

1,771

Gain on disposal of fixed asset

(15)

Interest expense (income) on other investments

31

(470)

Unrealized (gain) loss on marketable securities

(56)

80

426

(Recovery of) Provision for credit losses

(99)

(112)

17

Change to inventory reserve

1,691

(445)

1,187

Deferred income taxes

(2,776)

(2,818)

(214)

Stock based compensation expense

1,733

1,464

1,649

Gain on extinguishment of debt

(3,904)

Changes in operating assets and liabilities:

Accounts receivable

(5,730)

3,261

(1,154)

Inventories

(3,255)

1,883

(19,274)

Prepaid expenses and other current assets

(867)

(564)

(430)

Income tax receivable

2

(75)

Other assets

25

35

(103)

Accounts payable, accrued expenses, accrued salaries and wages, accrued income
taxes

2,688

(6,581)

8,762

Net Cash Provided by Operating Activities

45,368

24,700

8,332

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant, and equipment

(1,594)

(2,962)

(1,482)

Proceeds from disposal of fixed asset

38

Purchases of marketable securities

(206)

(148)

(81)

Purchases of other investments

(1,351)

(35,281)

Redemption of other investments

10,091

Net Cash Used in Investing Activities

(3,151)

(28,262)

(1,563)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from stock option exercises

427

85

155

Cash paid for dividend

(13,258)

(2,298)

Net Cash (Used in) Provided by Financing Activities    

(12,831)

(2,213)

155

Net increase (decrease) in Cash and Cash Equivalents

29,386

(5,775)

6,924

CASH AND CASH EQUIVALENTS – Beginning

35,955

41,730

34,806

CASH AND CASH EQUIVALENTS – Ending

$

65,341

$

35,955

$

41,730

SUPPLEMENTAL CASH FLOW INFORMATION

Interest paid

$

14

$

16

$

16

Income taxes paid

$

9,330

$

8,811

$

2,168

 

NAPCO SECURITY TECHNOLOGIES, INC.

NON-GAAP MEASURES OF PERFORMANCE* (Unaudited)

(in thousands, except share and per share data)

3 months ended June 30,

12 months ended June 30,

2024

2023

2024

2023

Net income (GAAP)

$        13,534

$          10,565

$         49,818

$         27,127

Add back provision for income taxes

1,192

1,626

6,568

4,101

Interest and other (income), net

(762)

(382)

(2,568)

(903)

Operating Income (GAAP)

13,964

11,809

53,818

30,325

Adjustments for non-GAAP measures of performance:

   Add back amortization of acquisition-related intangibles

84

90

337

361

   Add back stock-based compensation expense

857

330

1,733

1,464

   Add back non-recurring legal expenses

58

373

1,220

576

Adjusted non-GAAP operating income

14,963

12,602

57,108

32,726

Add back depreciation and other amortization

452

442

1,826

1,569

Adjusted EBITDA* (earnings before interest, taxes,
depreciation and amortization)

$         15,415

$         13,044

$         58,934

$         34,295

Adjusted EBITDA* per Diluted Share

$             0.41

$             0.35

$             1.59

$             0.93

Weighted average number of Diluted Shares outstanding

37,232,000

37,137,000

37,066,000

37,005,000

 

Contacts:
Francis J. Okoniewski
Vice President of Investor Relations
NAPCO Security Technologies, Inc.
Office 800-645-9445 x 374
Mobile 516-404-3597
fokoniewski@napcosecurity.com

View original content:https://www.prnewswire.com/news-releases/napco-reports-record-revenues-net-income-and-adjusted-ebitda-for-fiscal-2024-302229970.html

SOURCE NAPCO Security Technologies, Inc.

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Technology

U.S. Quartz Workers: Strong Safeguard Remedies Needed to Save 100,000 American Manufacturing Jobs

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WASHINGTON, July 23, 2026 /PRNewswire/ — The Quartz Manufacturers Alliance for America (QMAA) released a powerful video featuring quartz manufacturing workers from across the country calling for free and fair trade policies to save 100,000 American jobs. QMAA, a coalition of leading U.S.-based quartz slab manufacturers, are calling for strong safeguard remedies after the U.S. International Trade Commission (ITC) found a huge flood of foreign imports had caused tremendous injury to the domestic quartz industry.

QMAA members are urging the Trump Administration to build on the ITC’s strong recommendation and address this major flood of quartz imports with a Tariff of 50% and a Reshoring Import Cap of 141 million square feet on imported quartz surface products. This will ensure a reshoring of the good-paying U.S. quartz manufacturing jobs stolen by companies who cheat U.S. trade law, distort competition and are decimating U.S. quartz manufacturing. Together, these trade remedies will provide the relief necessary to save the 100,000 jobs supported by the U.S. quartz industry.

The video features workers from LX Hausys, Guidoni USA and Cambria Company and is available here:
Save 100,000 American Quartz Jobs

Quotes from QMAA Quartz Manufacturing Workers
“This facility used to be a Husqvarna plant. Husqvarna closed down due to cheap foreign imports. There were over 1,000 people working here and all of a sudden…I’m worried I may see the same thing take place again.”
-Raymond Mack, Production Operator, Guidoni USA, Helena-McRae, GA

“Foreign countries, mainly China, Thailand, Malaysia, Vietnam, Indonesia, have been circumventing and cheating the American market. We believe in the industry. We believe in the American working power. We just want to level the playing field, make it fair for everyone and everyone will benefit.”
– Daniel Vas de Melo SA, Business Development Manager, Guidoni USA, McRae-Helena, GA

“In order for us to continue to compete, we need a strong Tariff and Import Cap on imported quartz surfaces. That will ensure we can play on an even playing field. That’s all we’re asking for. I would hate to see cheap, imported quartz have a negative impact on families such as mine and the other families that we employ here.”
– Mike Morici, Vice President – LX Hausys, Adairsville, GA

“The surge of foreign imports has shocked the U.S. economy, and the market for surfaces. It’s taken prices down to unsustainably low levels for any domestic supplier. The result of that is we’re not producing as much as we should, we can’t hire as many people as we would like to, and we can’t grow our business in the way that we and our peers in the U.S. want to grow.”
– Andrew Eich, President and Chief Operating Officer, Cambria

“As these foreign imports flood the market, we lose the ability to create and sustain jobs that ensure good paying conditions for manufacturing workers. There will be over 100,000 jobs that have the strong potential to go away.”
– Jack Sundry, SVP Core and Lexus – Cambria, Southern Minnesota

Background
In September 2025, QMAA filed a Global Safeguard petition with the U.S. International Trade Commission (ITC) under Section 201 of the U.S. Trade Act of 1974. The ITC’s thorough investigation found serious injury to the domestic industry caused by a massive import surge designed to undercut American businesses. Quartz imports have surged by 78.3% within the past five years, leading to a nearly 20% decline in domestic production, factory closures and major job reductions.

A final safeguard decision from the United States Trade Representative is expected by Aug. 1, 2026.

About the Quartz Manufacturing Alliance for America:
QMAA is a coalition of U.S.-based, American quartz slab manufacturing factories, united with other industry leaders to support and strengthen the American quartz industry. QMAA is committed to ensuring a free and fair, competitive marketplace born of free enterprise that provides the opportunity to compete on a level playing field for American quartz slab manufacturing factories and their valued workers. We also believe this effort will have a positive impact throughout the entire quartz surfacing industry, including to the strong benefit of American stone fabrication shops and upstream suppliers of quartz minerals and resin. Learn more at: https://www.qmaa.org/

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SOURCE Quartz Manufacturing Alliance of America

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Databricks and Microsoft expand partnership to help enterprises bring business context to enterprise AI

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Databricks and Microsoft extend strategic partnership through the 2030s to scale enterprise AIDatabricks deepens its bet on Azure, growing its use of Azure Databricks to run its own core business operations and analytics, while both companies advance native integration across the Microsoft stack, including Databricks Genie and Microsoft 365Databricks increases its use of Microsoft Azure Cobalt to improve performance and efficiency

REDMOND, Wash. and SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Microsoft Corp. and Databricks on Wednesday announced an expansion of their decade-long strategic partnership, extending into the 2030s. Databricks will deepen its use of Azure Databricks to run core business operations and build its unified lakehouse, while leveraging Azure Cobalt, Microsoft’s next-generation Arm-based infrastructure, to improve performance and efficiency. Microsoft will also continue integrating Databricks Data and AI platform across its products, bringing capabilities like Genie, Databricks’ AI co-worker, directly into customer workflows. Together, the companies are helping enterprises build AI grounded in their own business context with the cost efficiency, control and choice needed to scale successfully.

Enterprises want AI that understands their customers, products, operations, metrics and business processes, all while running securely where work happens. Yet, most still struggle to connect AI to trusted business knowledge, govern models and agents consistently, and control costs. Microsoft and Databricks are helping customers close that gap: 

“For nearly a decade, Databricks and Microsoft have helped enterprises innovate with data and AI,” said Ali Ghodsi, Co‑Founder and CEO of Databricks. “Today, our partnership is stronger than ever. With Databricks Genie and Unity AI Gateway deeply integrated across Microsoft’s products, we’re helping enterprises unify their data and ground AI in business knowledge. This lets customers get the full benefits of agents and models while controlling costs and ensuring governance.”

“The next generation of AI will be defined by how effectively organizations turn their unique knowledge into intelligence,” said Judson Althoff, CEO, Microsoft Commercial Business. “Microsoft and Databricks are helping customers connect data, AI and business context to accelerate decision-making and drive measurable impact. With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers will benefit from greater performance, efficiency and scale for their most demanding workloads. Databricks’ decision to run its own core business operations on Azure Databricks also gives customers confidence in a platform proven at enterprise scale.”

Databricks runs core business operations on Azure Databricks 

As part of this latest deal, Databricks deepens its commitment to Azure, running its own core business operations and analytics on Azure Databricks, using the very platform it delivers to customers at scale.

Advancing performance with Azure Cobalt

Databricks will also expand its use of Azure Cobalt, Microsoft’s next-generation Arm-based infrastructure, to improve performance and efficiency for agentic and data-intensive workloads. Databricks currently uses Cobalt 100 and plans to adopt Cobalt 200, which delivers up to 50% better performance and includes memory encryption enabled by default.

Deep integrations for Databricks Genie and Unity AI Gateway with Microsoft product stack

By combining the Databricks Data + AI Platform with Azure’s global scale, customers can accelerate AI transformation while maintaining control and reliability. As a native Azure service, Azure Databricks makes its AI capabilities available directly within customers’ existing Microsoft environment, grounding and operating agents on enterprise data with Genie and Genie Ontology, and governing models, agents and cost through Unity AI Gateway. Deeply integrated across the Microsoft ecosystem spanning Microsoft Entra, Azure Data Lake Storage, Azure security, Microsoft OneLake, Power BI, Microsoft Purview, Microsoft Foundry, Power Platform, Microsoft 365, Teams and Copilot, these capabilities bring governed, real-time data and AI into business workflows, giving organizations the context, control, choice and cost efficiency needed to drive impact.

Continued investment is evident from our recent announcements with Databricks at Data + AI Summit in June.

Customer impact with Azure Databricks

The deepened collaboration strengthens support for joint customers running data, analytics and AI workloads on Azure Databricks, delivering improved performance, security, AI governance and enterprise readiness. Thousands of customers, including Banco Bradesco, the Cincinnati Reds, Electrolux, SMBC and Unilever, already use Azure Databricks to run critical workloads and scale AI with confidence.

Read more on the proven business value of the Databricks and Microsoft partnership on the Microsoft Azure blog.

About Databricks

Databricks is the Data and AI company. More than 20,000 organizations worldwide — including AT&T, Bayer, BMW Group, HSBC, T-Mobile, Unilever, and 70% of the Fortune 500 — rely on Databricks Data + AI Platform to build and scale data and AI apps, analytics and agents. Headquartered in San Francisco with 30+ offices around the globe, Databricks offers a unified platform that includes Genie, Lakebase, Agent Bricks, Lakeflow, Lakehouse, and Unity Catalog. To learn more, follow Databricks on LinkedIn, X, YouTube, and Instagram.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

 

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SOURCE Microsoft Corp.

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Harness and Kong Expand Strategic Partnership to Deliver Comprehensive API and AI Security

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Joint solution extends proven API gateway security to the AI era — with automated AI discovery and runtime AI protection

SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Harness, the AI Software Delivery Platform™ company, and Kong Inc., a leading developer of API and AI connectivity technologies, today announced an expansion of their strategic partnership to address the growing security challenges posed by AI-driven architectures, autonomous agents, and Model Context Protocol (MCP) deployments.

According to The State of AI-Native Application Security 2025 report, as enterprises race to deploy AI at scale, 62% have no visibility into where LLMs are in use across their environment, and 74% say AI sprawl will outpace API sprawl when it comes to risk — making embedded, infrastructure-level security more critical than ever. And companies are now deploying agents into their operations at an exponentially increasing rate, making it a necessity to protect the agents themselves and the systems interacting with those agents.

The two companies are extending their joint solution from Kong API Gateway to also include Kong AI Gateway, bringing Harness’s AI security intelligence directly into the AI infrastructure layer and enabling enterprises to discover, monitor, and protect every agent, AI asset, LLM-powered service, and MCP-connected workflow that traverses it.

A Proven Foundation: Harness and Kong API Gateway

Harness and Kong have been jointly trusted by enterprises to deliver best-in-class API security for years. The existing Harness and Kong API Gateway integration provides:

Comprehensive API traffic visibility and behavioral analysis across all Kong-managed servicesReal-time detection and blocking of API threats, including OWASP API Security Top 10 risks, credential stuffing attacks, and business logic abuseContinuous sensitive data tracking to identify PII exposure and regulatory riskZero-friction deployment alongside existing Kong configurations

This new offering of the AI Gateway solution applies the same level of security depth to AI infrastructure, ensuring that security teams are not left behind as their organizations adopt AI and agentic operations.

“Our partnership with Harness has given joint customers production-grade API security that works with the way they build, not against it,” said Ken Kim, Senior Vice President, Business Development at Kong Inc. “Extending to include Kong AI Gateway is a natural next step. The same enterprises are now moving AI into production through our gateway and need the same depth of visibility and control they’ve come to rely on for their APIs for all AI traffic types including LLM, MCP, and A2A. That’s exactly what this delivers and is crucial for organizations scaling in the agentic era.”

The New Frontier: Kong AI Gateway and Harness AI Security

As enterprises accelerate AI adoption, the attack surface has fundamentally shifted. AI agents, LLM-powered microservices, and MCP-enabled integrations introduce new vectors that traditional security tools were not designed to address. Unlike traditional software, AI agents are non-deterministic — the same agent can behave differently on consecutive runs, making it impossible to secure them the way you’d secure a static API. The new Harness and Kong AI Gateway integration directly tackles these challenges across two critical domains: AI discovery and AI protection.

AI Discovery
Harness automatically inventories every AI asset, API, MCP server, tool, prompt, and resource routed through Kong AI Gateway — providing security teams with a continuously updated catalog of their AI attack surface. No manual documentation. No blind spots.

AI Protection
Harness applies behavioral analysis and anomaly detection to AI traffic in real time, identifying prompt injection attacks, data exfiltration through AI responses, jailbreaking, malicious code in prompts, and other AI-specific threats. Enterprises gain the same depth of observability and protection for their agents and AI workloads that they already rely on for traditional APIs, with full prompt and response details available for incident investigation and inline policy enforcement through Kong AI Gateway.

“Shadow AI has become the defining security blind spot for enterprises today. Traditional tools were built for static code and predictable systems, not for adaptive AI models, agent-to-agent communication, and MCP-connected workflows that evolve continuously,” said Rahul Sood, GM of Application Security at Harness. “This integration of Harness AI Security with Kong puts security intelligence directly into the connectivity layer where AI traffic flows. Joint customers now have the visibility and control they need to move fast without losing sight of what’s happening across their AI infrastructure.”

Availability

The Harness and Kong API Gateway integration is generally available today for all joint customers. The Kong AI Gateway integration, including AI Discovery and AI Protection, is also generally available now. Joint customers can contact their account team or request a demo.

About Harness
Harness is the AI Software Delivery Platform™ company, enabling engineering teams to build, test, and deliver software faster and more securely. Powered by Harness AI and the Software Delivery Knowledge Graph, the platform brings intelligent automation to every stage of the software delivery lifecycle after code — removing toil and freeing developers from manual, repetitive work. Companies like United Airlines, Morningstar, and Choice Hotels use Harness to accelerate releases by up to 75%, cut cloud costs by 60%, and achieve 10x efficiency across DevOps. Based in San Francisco, Harness is backed by Goldman Sachs, Menlo Ventures, IVP, Unusual Ventures, and Citi Ventures.

About Kong

Kong Inc., a leading developer of API and AI connectivity technologies, is building the connectivity layer of AI. Trusted by the Fortune 500® and AI-native startups alike, Kong’s unified API and AI platform enables organizations to secure, manage, accelerate, govern, and monetize the flow of intelligence across APIs and AI traffic — on any model, any cloud. For more information, visit www.konghq.com.

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SOURCE Harness

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