<PAGE> 1
Filed Pursuant to Rule 424(b)(3)
SEC File Number 333-14743
NAPCO SECURITY SYSTEMS, INC.
COMMON STOCK
(PAR VALUE $0.01 PER SHARE)
UP TO 814,733 SHARES
PROSPECTUS DATED OCTOBER 28, 1997
This Prospectus relates to up to 814,733 shares of common stock, par
value $0.01 per share (the "Common Stock"), and associated stock options of
Napco Security Systems, Inc., a Delaware corporation (the "Company"), which have
previously been issued or may in the future be issued to certain key employees
of the Company and its subsidiaries pursuant to awards granted under the
Company's 1992 Incentive Stock Option Plan, as amended (the "Plan") to be sold
by the selling stockholders named in "Selling Stockholders" and in Annex I
hereto (the "Selling Stockholders"). The Company will not receive any proceeds
from the sale of the Common Stock, except the option exercise price.
This document constitutes part of a prospectus covering securities that
have been registered under the Securities Act of 1933.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY PRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
No person is authorized to give any information or to make any
representations in connection with the offer made in this Prospectus other than
as contained herein and any information or representation not contained herein
must not be relied upon as having been authorized by the Company.
<PAGE> 2
AVAILABLE INFORMATION
The Company has filed with the Securities and Exchange Commission (the
"Commission") a Registration Statement on Form S-8 under the Securities Act of
1933, as amended (the "Registration Statement") with respect to the Common Stock
and associated stock options pursuant to the Plan (the "Securities"), which
shares may be sold by the Selling Stockholders pursuant to this Prospectus. This
Prospectus does not contain all of the information set forth in the Registration
Statement and the exhibits thereto.
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith filed reports and other information with the Commission.
Reports, proxy statements and other information filed by the Company with the
Commission may be inspected and copied at the public reference facilities
maintained by the Commission at 450 Fifth Street, N.W., Room 1024, Washington,
D.C. 20549 and at the Commission's New York Regional Office, 7 World Trade
Center, Suite 1300, New York, New York 10048, and Chicago Regional Office,
Citicorp Center, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material may be obtained at prescribed rates upon written request
addressed to the Commission, Public Reference Section, 450 Fifth Street, N.W.,
Washington, D.C. 20549.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The following documents of the Company heretofore filed with the
Commission are hereby incorporated herein by reference:
(1) Amended and Restated 1992 Incentive Stock Option Plan contained
in Exhibit 4(a) of Part II of the Registrant's Registration Statement on Form
S-8, filed October 24, 1996.
(2) Registrant's Annual Report on Form 10-K for the
fiscal year ended June 30, 1997, Commission File No. 0-10004;
All reports and other documents subsequently filed by the Company
pursuant to Sections 13(a) and (c), 14 and 15(d) of the Exchange Act prior to
the filing of a post-effective amendment which indicates that all securities
offered hereunder have been sold or which deregisters all such securities then
remaining unsold, shall be deemed to be incorporated by reference in this
Prospectus and to be a part hereof from the date of filing of such reports and
documents.
The Company will provide without charge to each person to whom this
Prospectus is delivered, upon the written or oral request of any such person, a
copy of any and all of the information incorporated by reference in this
Prospectus (not including exhibits to the information that is incorporated by
reference unless such exhibits are specifically incorporated by reference into
the information that this Prospectus incorporates). Written requests should be
directed to Napco Security Systems, Inc., 333
2
<PAGE> 3
Bayview Avenue, Amityville, New York 11701, Attention: Senior Vice President of
Operations and Finance. Telephone requests should be directed to the Senior Vice
President of Operations and Finance (516-842-9400).
THE COMPANY
The term "Company" as used in this Prospectus includes Napco Security
Systems, Inc. and its subsidiaries, unless the context otherwise requires. The
principal executive offices of the Company are located at 333 Bayview Avenue,
Amityville, New York 11701 and its telephone number is (516) 842-9400.
SELLING STOCKHOLDERS
The table attached as Annex I hereto sets forth, as of the date of
this Prospectus or a subsequent date if amended or supplemented, (a) the name of
each Selling Stockholder and his or her relationship to the Company during the
last three years; (b) the number of shares of Common Stock each Selling
Stockholder: (i) owned of record and (ii) to be offered pursuant to this
Prospectus; and (c) the amount and the percentage of the class of Common Stock
that will be owned by each Selling Stockholder after completion of the offering.
The information contained in Annex I may be amended or supplemented.
PLAN OF DISTRIBUTION
Under the Company's 1992 Incentive Stock Option Plan, as amended ("1992
Plan") which was approved by vote of the stockholders of the Company at the 1992
Annual Meeting (extending the 1982 plan for an additional ten years), incentive
stock options to purchase up to an aggregate of 727,933 shares of Common Stock
as adjusted (plus the shares at the time subject to options) or a total of
815,933 shares may be granted at fair market value to key employees during the
ten-year period ending in October 2002. Since June 30, 1992 options for 9,200
shares have been exercised. At September 30, 1997, 559,983 shares were
available for grant under the 1992 Plan. Options to purchase a total of
246,750 shares of Common Stock were outstanding under the 1992 Plan on
September 30, 1997, with exercise prices of $2.50 to $4.375 per share. The
incentive stock options included in the foregoing tabulation expire five years
from the date of grant, are non-transferable and are exercisable beginning with
the date of grant in twenty (20%) percent cumulative yearly installments.
Generally, no tax consequences result from granting an incentive stock
option ("ISO") or from the exercise of an ISO by an employee, and the employer
will not be allowed a business expense deduction with respect to an ISO. Upon
disposition of stock held pursuant to an ISO, any gain recognized is subject to
capital gains treatment, providing certain holding period requirements are met.
The employee must not dispose of the stock for at least two years from the date
on which the option was granted to him and must hold the stock for at least one
year after the stock was transferred to him. If these holding period
requirements are not met for an otherwise qualified ISO, the gain that would
have been realized at the time the option was exercised is included as ordinary
income in the year of the disqualifying sale. The foregoing discussion is
subject to changes in the tax laws. For more detailed current information as
well as alternative minimum tax provisions, an individual tax adviser should be
consulted.
Sales of the Common Stock offered hereby may be made on NASDAQ or the
over-the-counter market or otherwise at prices and on terms then prevailing or
at prices related to the then current market price, or in negotiated
transactions. In addition, any securities covered by this Prospectus which
qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than
pursuant to this Prospectus. The Company will not receive any part of the
proceeds of the sales made hereunder except for the option exercise price. All
expenses of registration incurred in connection with this offering are being
borne by the Company, but all selling and other
3
<PAGE> 4
expenses incurred by a Selling Stockholder will be borne by such stockholder.
The Common Stock may be sold in (a) a block trade in which the broker
or dealer so engaged will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction,
(b) purchases by a broker or dealer as principal and resale by such broker or
dealer for its account pursuant to this Prospectus, and (c) ordinary brokerage
transactions and transactions in which the broker solicits purchases. In
effecting sales, brokers or dealers engaged by the Selling Stockholders may
arrange for other brokers or dealers to participate. Brokers or dealers will
receive commissions or discounts from Selling Stockholders in amounts to be
negotiated immediately prior to Sale. Such brokers or dealers and any other
participating brokers or dealers may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales.
The Company has informed the Selling Stockholders of the need for
delivery of a copy of this Prospectus in connection with all offers to sell
shares of Common Stock. There is no assurance that any of the Selling
Stockholders will offer for sale or sell any or all of the Common Stock covered
by this Prospectus.
EXPERTS
The consolidated financial statements, incorporated by reference in
this Prospectus and elsewhere in the Registration Statement, have been audited
by Arthur Anderson LLP, independent public accountants, as indicated in their
report with respect thereto, and are included herein in reliance upon the
authority of said firm as experts in giving said report.
4
<PAGE> 5
ANNEX I*
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES TO BE BENEFICIALLY OWNED UPON
COMPLETION OF OFFERING (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Shares of Common Stock Shares
NAME AND RELATIONSHIP TO NAPCO Beneficially Owned as of (Options) Offered Total
SECURITY SYSTEMS, INC. (2) September 30, 1997 Hereby Number Percent
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ali, R. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Ayers, E. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Bolton, G. 0 6,000 6,000 .14%
- -----------------------------------------------------------------------------------------------------------------------------------
Bonacum. R. 0 4,000 4,000 .09%
- -----------------------------------------------------------------------------------------------------------------------------------
Buccola, C. 200 9,000 9,200 .21%
- -----------------------------------------------------------------------------------------------------------------------------------
Buchel, K. 1 30,000 30,001 .69%
- -----------------------------------------------------------------------------------------------------------------------------------
Budzioch, E. 0 6,000 6,000 .14%
- -----------------------------------------------------------------------------------------------------------------------------------
Calvarese, R. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Conde, J. 0 10,000 10,000 .23%
- -----------------------------------------------------------------------------------------------------------------------------------
Corsale, G. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
DePierro, A. 24,107 5,000 29,107 .67%
- -----------------------------------------------------------------------------------------------------------------------------------
Dunphy, C. 0 5,000 5,000 .11%
- -----------------------------------------------------------------------------------------------------------------------------------
Gaudio, R. 85,267 5,000 90,267 2.07%
- -----------------------------------------------------------------------------------------------------------------------------------
Geary, W. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Hanselman, C. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Johannson, K. 5,000 6,500 11,500 .26%
- -----------------------------------------------------------------------------------------------------------------------------------
Jones, J. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Jones, S. 0 4,500 4,500 .10%
- -----------------------------------------------------------------------------------------------------------------------------------
Karl, T. 1,000 3,500 4,500 .10%
- -----------------------------------------------------------------------------------------------------------------------------------
Keel, F. 0 7,000 7,000 .16%
- -----------------------------------------------------------------------------------------------------------------------------------
Mawson, F. 1,000 2,500 3,500 .08%
- -----------------------------------------------------------------------------------------------------------------------------------
McBride, G. 0 5,000 5,000 .11%
- -----------------------------------------------------------------------------------------------------------------------------------
McBride, M. 500 4,500 5,000 .11%
- -----------------------------------------------------------------------------------------------------------------------------------
Murray, A. 0 1,500 1,500 .03%
- -----------------------------------------------------------------------------------------------------------------------------------
Paladino, R. 2,625 22,000 24,625 .56%
- -----------------------------------------------------------------------------------------------------------------------------------
Perotta, R. 600 1,250 1,850 .04%
- -----------------------------------------------------------------------------------------------------------------------------------
Potter, D. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Rappaport, J. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Russotto, J. 0 4,000 4,000 .09%
- -----------------------------------------------------------------------------------------------------------------------------------
Sabia, M. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Salazar, L. 0 5,000 5,000 .11%
- -----------------------------------------------------------------------------------------------------------------------------------
Scardino, J. 400 12,000 12,400 .28%
- -----------------------------------------------------------------------------------------------------------------------------------
Schettino, R. 0 5,000 5,000 .11%
- -----------------------------------------------------------------------------------------------------------------------------------
Schramme, S. 0 3,000 3,000 .07%
- -----------------------------------------------------------------------------------------------------------------------------------
Shaw, A. 17,025 6,500 23,525 .54%
- -----------------------------------------------------------------------------------------------------------------------------------
Sheffey, D. 2,400 7,000 9,400 .22%
- -----------------------------------------------------------------------------------------------------------------------------------
Sheppard, G. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Strom, B. 0 7,500 7,500 .17%
</TABLE>
5
<PAGE> 6
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES TO BE BENEFICIALLY OWNED UPON
COMPLETION OF OFFERING (1)
- -----------------------------------------------------------------------------------------------------------------------------------
SHARES OF COMMON STOCK SHARES
NAME AND RELATIONSHIP TO NAPCO BENEFICIALLY OWNED AS OF (OPTIONS) OFFERED TOTAL
SECURITY SYSTEMS, INC. (2) SEPTEMBER 30, 1997 HEREBY NUMBER PERCENT
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Thomas, R. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Todd, B. 0 2,000 2,000 .05%
- -----------------------------------------------------------------------------------------------------------------------------------
Thurer, H. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Vogel, J. 0 2,500 2,500 .06%
- -----------------------------------------------------------------------------------------------------------------------------------
Zambenedetti, R. 0 3,500 3,500 .08%
- -----------------------------------------------------------------------------------------------------------------------------------
certain unnamed
affiliates each of whom may
sell up to 1,000 shares 0 21,000 21,000 .48%
- -----------------------------------------------------------------------------------------------------------------------------------
future grantees
of stock options 0 559,983 559,983 12.82%
- -----------------------------------------------------------------------------------------------------------------------------------
Totals 139,225 (3) 806,733 945,958 21.65%
====== ======= ======= ======
===================================================================================================================================
</TABLE>
* To be completed by prospectus supplement
(1) Assumes that all options are exercised and all shares offered are sold, that
no additional shares will be purchased and that no additional shares will be
sold.
(2) Employees during last three years except where noted by **
(3) Includes 6,600 shares that were issued to named individuals pursuant to
their exercise of stock options under the 1992 Incentive Stock Option Plan.
6
