NAPCO Security Technologies, Inc.

Greetings and welcome to NACO Security Technologies fiscal second quarter 2021 earnings release conference call. At this time, all participants are in a listed 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 would now like to turn the conference over to Patrick Patrick McKillop, Director of Investor Relations. Thank you. You may begin.

Thank you. Good morning. I'm Patrick McKillop, Director of Investor Relations here at NAPCO. Thank you for joining us today for today's conference call to discuss our financial results for our fiscal second quarter of 2021. 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 presentation contains forward-looking statements that are based on current expectations, estimates, forecasts, and projections of future performance based on management's judgments, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to growth drivers of the company's business, such as school security products and recurring revenue services, potential market opportunities, the benefits of recurring revenue products to customers and dealers, Our ability to control expenses and costs and expected annual run rate for SAS recurring monthly revenue. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include but are not limited to such risk factors described in our SEC filings, including our annual report on Form 10-K. Other unknown or unpredictable factors or underlining assumptions subsequently provided 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. We should not place undue reliance on these forward-looking statements. All information provided in today's press release and this conference call is as of today's date unless otherwise stated, and we undertake no duty to update such information except as required under applicable law. We'll turn the call over to Dick in a moment. Before I do, I just wanted to mention a few things on the IR Fund. We are planning for more virtual roadshows throughout the remainder of the year and look forward to when we can meet in person again. Also, we recently gained new research coverage from B. Riley and Needham analysts, and we're excited to have them help increase awareness of the exciting NAPCO story. Investor outreach is crucial, especially for small-cap companies such as NAPCO, and I would like to thank all of those folks that assist us in these conference 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. Welcome to our conference call. Thank you for joining us today to discuss our results. We are very pleased to report our record Q2 sales results of 27.2 million. Our recurring revenues continue to grow at an even higher rate than recent quarters, 42% in Q2. And now we have an annual run rate of 33.8 million as of December. Our focus on targeting the professional installation and mostly commercial end markets is driving this continuous growth, especially in the fire alarm sector. Our balance sheet remains strong with our cash balances continuing to grow. We remain focused on capitalizing on key industry trends, which include wireless fire and intrusion alarms, school security solutions, plus enterprise access control systems and architectural locking products. The management team here at NAPCO continues to focus on key metrics of growth, profits, and return on equity and controlling costs, especially during these difficult times. These metrics are important to us as well as our shareholders. We continue to execute our business strategy and our interests are aligned with our shareholders as senior management at NAPCO owns approximately 22% of the equity. Before I go into greater detail, I will now turn the call over to our CFO, Kevin Buchel. He will provide an overview of our fiscal second quarter results, and then I'll be back with more on our strategies and outlook. Kevin?