NAPCO Security Technologies, Inc.

Greetings and welcome to NAPCO Security Technologies, Inc. Fiscal Second Quarter 2022 Earnings Conference 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 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.

Thank you. Hello, my name is Patrick McKillop. I'm the Director of Investor Relations for NAPCO Security. Good morning and thank you all for joining us for today's conference call to discuss our financial results for our fiscal second 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.napcosecurity.com. On the call today is Richard Soloway, President and CEO of NAPCO Security Technologies, and Kevin Buchel, Executive 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 the 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 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 limited to, such risk factors as described in our SEC filings, including our annual report on Form 10-K. Other unknown or unpredictable factors or underlying 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 will turn the call over to Dick in a moment, but before I do, I just want to mention a few things on the IR front. We are hosting virtual NDRs this week with Canaccord Genuity and B. Riley on separate days, and if you're interested in having a one-on-one meeting with us, please reach out to your sales rep at either firm. Investor outreach is crucial, especially for a small capital companies such as NAPCO, and I would like to thank all those folks that assist us in these conferences and marketing trips. In addition, we will be attending the International Security Conference, the industry's largest trade show, which is taking place March 22nd through the 25th in Las Vegas at the Venetian Expo Center. Please contact me if you're interested in attending. 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 call. Thank you for joining us today to discuss our results. We're pleased to report our fiscal Q2 2022 record sales of 33.4 million. Our results reflect our fifth consecutive quarter of sales growth. Recurring revenue continued to grow at a very strong rate and the annual run rate is now 46.2 million based on January 2022 recurring revenues. Our balance sheet remains strong with our cash balances continuing to grow now in excess of $47 million and we have no debt We continue to focus on capitalizing on key industry trends, which include wireless and cellular fire and intrusion alarm systems, 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, returns on equity, and controlling costs. 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 21% of the equity. Before I go into greater detail, I'll now turn the call over to our CFO, Kevin Bichelle. who will provide an overview of our fiscal second quarter results, and then I'll be back with more of our strategies and outlook. Kevin?