NAPCO Security Technologies, Inc.

Greetings and welcome to NAPCO Security Technologies, Inc. Fiscal First Quarter 2022 Earnings Release Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick McKillop, Director of Investor Relations. Thank you. You may begin.

Good morning. My name is Patrick McKillop. I'm the Director of Investor Relations for NAPCO Security. Thank you all for joining us for today's conference call to discuss our financial results for our fiscal first quarter 2022. 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.napgosecurity.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 judgment, 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 our recurring revenue products to customers and dealers, our ability to control expense and costs, and expected annual run rate for SAS returning 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, 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 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. I'll turn the call over to Dick in a moment, but before I do, I just wanted to mention a few things on the IR front. We're planning more virtual NDRs into the end of calendar 2021, and we will be presenting at the Needham Growth Conference in January 2022. 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 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. Welcome to our conference call. Thank you for joining us today to discuss our results. We are very excited to report our fiscal results. Q1 2022 record sales of $31.1 million and record net income of $7.8 million. Our results reflect another strong performance by NAPCO. Recurring revenue continued to grow at a very strong rate, and the annual run rate is now $42.6 million. based on October 2021 recurring revenues. Our balance sheet remains strong with our cash balances continuing to grow, now in excess of $43 million. We continue to focus 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 the key metrics of growth, profits, and returns on equity and controlling costs. These metrics are important for 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 21% of the equity. Before I go into greater detail, I will now turn the call over to our CFO, Kevin Bushell, who will provide an overview of our fiscal first quarter results, and then I'll be back with more on our strategies and outlook. Kevin, the floor is yours.