NAPCO Security Technologies, Inc.

Greetings and welcome to the NAPCO Security Technologies Fiscal First Quarter 2023 Results 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 this conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to our host, Patrick McKillop, Vice President of Investor Relations. Thank you. You may begin.

Thank you. Good morning. My name is Patrick McKillop, Vice President 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 2023. 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 on 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, 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 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 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 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 wanted to mention a few things on the IR calendar. We are attending and hosting one-on-one meetings at the sixth annual Wells Fargo TMT Summit Conference taking place in Las Vegas November 29th through December 1st. Also, we will be attending the Imperial Capital Conference annual Security Investor Conference on December 14th through the 15th in New York City. And finally, we'll be at the annual Needham Growth Conference in New York City on January 10th through the 12th, 2023. We would also like to invite investors and our Southside analysts to come to the ISC East Trade Show taking place at the Javits Center in New York on November 15th through the 17th. ISC East is one of the largest trade shows in the industry and and NAPCO will have a premier location for its booth displaying all of our great products. Investor outreach is crucial, especially for a small-cap company 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. Vic, 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 are very pleased to report our fiscal Q1 2023 record sales of $39.5 million. Recurring revenue continued to grow at a very strong rate, and the annual run rate is now approximately $58 million based on October 2022 recurring revenues. Our balance sheet remains strong with our cash balances at $44.4 million, and we have no debt. 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, 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 of NAPCO owns approximately 21% of the equity. Before I go into greater detail, I will now turn the call over to our CFO, Kevin Bichelle, 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?