NAPCO Security Technologies, Inc.

Greetings and welcome to the NAPCO Security Technologies, Inc. Fiscal Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Director of Investor Relations, Patrick McKillop. Mr. McKillop, you may begin.

Thank you, Darrell. Good morning. My name is Patrick McKillop. I'm the Director of Investor Relations for NAPCO Security. Thank you for joining us for today's conference call to discuss our financial results for our fiscal second quarter 2020. By now, all of you should have had the opportunity to review the press release discussing the results. If you have not, a copy of the release is available in the Investor Relations section of our website, www.napcosecurity.com. On the call today is Richard Soloway, President and CEO of NAPCO Security Technologies, and Kevin Buchel, Senior Vice President and CFO. Before we begin, let me take a moment to read the forward-looking statement. This conference call may contain forward-looking statements that involve numerous risks and uncertainties. Actual results, performance, or achievements may differ materially from those anticipated in such forward-looking statements as a result of certain factors. including those set forth in the company's filings with the SEC. During the call, we may also present certain non-GAAP financial measures such as adjusted EBITDA and certain ratios that are used with these measures. In the press release and on the financial tables issued earlier today, you'll find a definition of these non-GAAP financial measures or reconciliations of these non-GAAP financial measures with the closest GAAP financial measure as well as a discussion about why we think these non-GAAP financial measures are relevant to our results. These financial measures are included for the benefit of investors and should not be considered instead of GAAP measures. I'll turn the call over to Dick in a moment before I do, but I just wanted to mention a few things on the IR fund. In terms of upcoming investor outreach, we will be marketing in Boston on February 5th. and are continuing to plan more events in other regions during the next few months. Also on March 17th through the 19th, we will be showcasing our products at the ISC West Trade Show at the SANS Expo Convention Center in Las Vegas, Nevada. If you'd like to attend ISC West or are interested in having us visit with you or need to arrange more time with us post this earnings call, please contact me. Investor outreach is crucial, especially for small cap companies such as NAPCO. And I would like to thank all those folks that assist us in these conferences and marketing trips. With that out of the way, let me turn the call over to Richard Soloway, President and CEO of NAPCO Security Technologies. Dick, the floor is yours.

Thank you, Patrick. Good morning, everyone, and welcome to our conference calls. Thank you for joining us today to discuss our results. The fiscal second quarter 2020 marked another record revenue and profitability performance for NAPCO. Our SAS recurring revenues continue to grow at a rapid rate. Our recurring revenues annual run rate is now 24 million as of December Our focus on targeting mostly commercial end markets and professional installation is driving this continuous growth. Our cash balances continue to grow, and our cash balance is clean with no debt. Capitalizing on key industry trends remains our focus. These trends include wireless fire and intrusion alarm communicators, school security solutions, Enterprise Access Control Systems, and Architectural Locking Products. Management here at NAPCO continues to focus on key metrics of growth, profits, and returns on equity. These metrics are important to us as well as our shareholders. Our business strategy is executing well and our interests are aligned with our shareholders as senior management at NAPCO owns 38% of the equity. Before I go into greater detail, I'll now turn the call over to our CFO, Kevin Buchel, to provide an overview of our fiscal second quarter financial results, and then I'll be back with more on our strategies and outlook. Kevin?