NAPCO Security Technologies, Inc.

Greetings. Welcome to NAPCO Security Technologies Incorporated Fiscal Third Quarter 2023 Earnings 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 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 Patrick McKillop Vice President of Investor Relations. Thank you. You may begin.

Thank you. Good morning. I'm Patrick McKillop, Vice President of Investor Relations for NAPCO Security. Thank you all for joining us today for today's conference call to discuss our financial results for our fiscal third 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 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 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 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 accurate results to different material notes in the forward-looking statements. Although we believe that expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results of activity performance estimates. We should not place under-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're trying to call over to Dick in a moment. If I do, I just want to mention some upcoming IR calendar events that we have, which are first the Needham Technology Media Conference on Wednesday, May 17th in New York City, followed by the B. Reilly Conference May 24th through the 25th in Los Angeles. Then we'll be at the William Blair Growth Conference, June 6th through the 8th in Chicago. And finally, we'll be attending the Wells Fargo Industrials Conference, June 13th through the 15th, also in Chicago. 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. 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 are very pleased to report our fiscal Q3 2023 record sales of $43.5 million. This is our 10th consecutive year order of sales growth. Recurring revenue continued to grow at a very strong rate and the annual run rate is now approximately $63 million based on April 2023 recurring revenues. Our balance sheet remains strong with our cash balances at $56.9 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 to 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 our 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 of NAPCO owns approximately 10% of the equity. Before I go into greater detail, I will now turn the call over to our CFO, Kevin Buschel, He will provide an overview of our fiscal third quarter results, and then I'll be back with more on our strategies and outlook. Kevin?