NAPCO Security Technologies' stock plummeted 5.82% during Monday's intraday trading session, reversing an earlier pre-market gain. The security equipment maker reported fiscal third-quarter results that showed mixed performance against analyst expectations.

The company's adjusted earnings per share of $0.39 beat the consensus estimate of $0.33, while revenue of $49.2 million slightly missed expectations of $49.3 million. Adjusted EBITDA also exceeded forecasts at $15.8 million versus the $14.1 million estimate.

Despite these generally positive adjusted metrics, investors reacted negatively to the revelation that the company took a $16 million litigation settlement charge during the quarter, which resulted in a GAAP net loss. This significant one-time expense appears to have outweighed the positive aspects of the earnings report, leading to the stock's sharp decline during regular trading hours.