NAPCO Security Technologies Inc (NSSC) 2023 Q4 法說會逐字稿

Welcome to the NAPCO Security Technologies Fiscal Q4 and Fiscal 2023 Earnings Call. Our host for today's call is Patrick McKillop, Vice President of Investor Relations.

歡迎參加 NAPCO Security Technologies 第四季度財報和 2023 財年收益電話會議。我們今天電話會議的主持人是投資者關係副總裁帕特里克·麥基洛普 (Patrick McKillop)。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to your host, Mr. McKillop, you may begin, sir.

我現在想把電話轉給東道主麥基洛普先生，您可以開始了，先生。

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 fourth quarter and fiscal year 2023.

謝謝。早上好。我是帕特里克·麥基洛普 (Patrick Mckillop)，NAPCO Security 投資者關係副總裁。感謝大家參加今天的電話會議，討論我們第四財季和 2023 財年的財務業績。

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.

到現在為止，你們所有人都應該有機會查看討論結果的新聞稿。如果您還沒有，可以在我們網站 www.napcosecurity.com 的投資者關係部分獲取該新聞稿的副本。今天參加電話會議的是 NAPCO Security Technologies 總裁兼首席執行官 Richard Soloway；執行副總裁兼首席財務官 Kevin Buchel。

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 SaaS recurring monthly revenue.

在開始之前，讓我花點時間閱讀一下前瞻性聲明。本演示文稿包含基於管理層的判斷、信念、當前趨勢和預期產品性能對未來業績的當前預期、估計、預測和預測的前瞻性陳述。這些前瞻性陳述包括但不限於與公司業務增長動力相關的陳述，例如學校安全產品和經常性收入服務、潛在的市場機會、我們的經常性收入產品給客戶和經銷商帶來的好處、我們的控制能力費用和成本以及 SaaS 每月經常性收入的預期年運行率。

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.

前瞻性陳述涉及風險和不確定性，可能導致實際結果與前瞻性陳述中包含的結果存在重大差異。這些因素包括但不限於我們向 SEC 提交的文件（包括我們的 10-K 表格年度報告）中描述的此類風險因素。其他未知或不可預測的因素或隨後被證明不正確的基本假設可能導致實際結果與前瞻性陳述中的結果存在重大差異。儘管我們認為前瞻性陳述中反映的預期是合理的，但我們不能保證未來的結果、活動水平、業績或成就。

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.

我們不應過分依賴這些前瞻性陳述。除非另有說明，今天的新聞稿和本次電話會議中提供的所有信息均為截至今日的信息，除非適用法律要求，否則我們不承擔更新此類信息的義務。

I will turn the call over to Dick in a moment, but before I do, I just want to mention that we will be attending the Lake Street Capital Conference on September 17 in New York and are planning for some non-deal road shows in the near future. Dick, the floor is yours.

我稍後會將電話轉給迪克，但在此之前，我只想提一下，我們將參加 9 月 17 日在紐約舉行的湖街資本會議，併計劃在不遠的將來。迪克，地板是你的了。

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 fourth quarter record sales of $44.7 million, which was the 11th consecutive quarter of sales growth. Our fiscal year 2023 sales of $170 million were also a record. Recurring revenue continued to grow at a strong rate and the annual run rate is now approximately $67 million based on July 2023 recurring revenues.

謝謝你，帕特里克。大家早上好，歡迎參加我們的電話會議。感謝您今天加入我們討論我們的結果。我們非常高興地報告第四財季銷售額達到創紀錄的 4,470 萬美元，這是連續第 11 個季度實現銷售額增長。我們 2023 財年的銷售額也達到了 1.7 億美元，創下了紀錄。經常性收入繼續強勁增長，根據 2023 年 7 月的經常性收入，目前的年運行率約為 6700 萬美元。

Our balance sheet remains strong with our cash balances at approximately $67 million and we have no debt. Also, we are pleased to report the company announced its quarterly dividend of $0.08 per share to be paid on September 22, 2023 to shareholders of record on September 1, 2023. This represents an increase of 28% from the previous quarterly dividend.

我們的資產負債表依然強勁，現金餘額約為 6700 萬美元，並且沒有債務。此外，我們很高興地報告，公司宣布將於 2023 年 9 月 22 日向 2023 年 9 月 1 日登記在冊的股東支付每股 0.08 美元的季度股息。這比上一季度股息增加了 28%。

We continue to focus on capitalizing on opportunities in our key end markets, which are mostly commercial, such as office and apartment buildings retail stores and restaurants, schools, hospitals, airports and government buildings. Our product lines such as wireless fire and intrusion alarms, school security solutions, enterprise access control and architectural locking products are delivering growth to our sales, and we are working every day to continue this growth pattern. The key metrics that the management team here at NAPCO focuses on our growth profits and returns on equity and controlling costs.

我們繼續專注於利用主要終端市場的機會，這些市場主要是商業市場，例如辦公樓和公寓樓、零售店和餐館、學校、醫院、機場和政府大樓。我們的無線火災和入侵警報、學校安全解決方案、企業訪問控制和建築鎖定產品等產品線正在為我們的銷售帶來增長，我們每天都在努力維持這種增長模式。 NAPCO 管理團隊關注的關鍵指標是我們的利潤增長和股本回報率以及控製成本。

These metrics are important for us as well as our shareholders. We look forward to continuing our growth streak in fiscal 2024 and beyond. Before I go into further detail, I will now turn the call over to our CFO, Kevin Buchel. He will provide an overview of our fiscal fourth quarter and fiscal 2023 results, and then I'll be back with more on our strategies and outlook. Kevin?

這些指標對我們以及我們的股東都很重要。我們期待在 2024 財年及以後繼續保持增長勢頭。在詳細介紹之前，我現在將把電話轉給我們的首席財務官 Kevin Buchel。他將概述我們第四財季和 2023 財年的業績，然後我將詳細介紹我們的戰略和前景。凱文？

Thank you, Dick, and good morning, everybody. Net sales for the 3 months ended June 30, 2023, and increased by 3% to a quarterly record $44.7 million as compared to $43.2 million for the same period a year ago. Net sales for the 12 months ended June 30, 2023, increased by 18% to $170 million as compared to $143.6 million for the same period a year ago.

謝謝迪克，大家早上好。截至 2023 年 6 月 30 日的三個月淨銷售額增長 3%，達到季度創紀錄的 4470 萬美元，而去年同期為 4320 萬美元。截至 2023 年 6 月 30 日的 12 個月淨銷售額增長 18%，達到 1.7 億美元，而去年同期為 1.436 億美元。

Recurring revenue for the quarter increased 27% to $16.1 million as compared to $12.7 million for the same period last year. Recurring revenue for the 12 months ended June 30, 2023, and increased 30% to $59.9 million compared to $46 million for the same period a year ago. Our recurring service revenues now have a prospective annual run rate of approximately $67 million based on July 2023 recurring service revenues, which compares to the $63 million run rate based on April 2023 recurring service revenues, which we reported back in May. Equipment sales for the quarter decreased 6% and to $28.6 million as compared to $30.5 million for the same period last year. This decrease was primarily due to a decrease in radio sales as partially offset by increases in both our Alarm Lock and Marks door locking products.

本季度經常性收入增長 27%，達到 1,610 萬美元，而去年同期為 1,270 萬美元。截至 2023 年 6 月 30 日的 12 個月經常性收入與去年同期的 4600 萬美元相比增長了 30%，達到 5990 萬美元。根據2023 年7 月的經常性服務收入，我們的經常性服務收入目前的預期年運行率為約6700 萬美元，而我們在5 月份報告的基於2023 年4 月的經常性服務收入為6300 萬美元。本季度設備銷售額下降 6%，降至 2860 萬美元，而去年同期為 3050 萬美元。這一下降主要是由於收音機銷量的下降，但部分被我們的 Alarm Lock 和 Marks 門鎖產品的增長所抵消。

The slowdown in radio sales in Q4 was primarily the result of excess inventory in the distribution channel as several distributors loaded up with radios when the impending 3G Verizon sunset was approaching and they wanted to ensure that they had updated 5G radios in their inventory. We believe this is a temporary situation, and we expect radio sales to continue to be a key contributor to our hardware sales and lead to the continued growth of our highly profitable recurring revenue.

第四季度收音機銷售放緩主要是由於分銷渠道庫存過多，因為在 3G Verizon 即將關閉時，一些分銷商大量裝載了收音機，他們希望確保庫存中的 5G 收音機已更新。我們認為這是暫時的情況，我們預計收音機銷售將繼續成為我們硬件銷售的主要貢獻者，並導致我們高利潤經常性收入的持續增長。

Equipment sales for the year ended June 30, 2023, increased 13% to $110 million as compared to $97.6 million in the prior year. This increase in equipment sales was primarily due to increased sales of Alarm Lock and Marks door locking products as well as Continental Access Control products as partially offset by the aforementioned slowdown in radio sales. Gross profit for the 3 months ended June 30, 2023, and increased 20% to $23 million with a gross margin of 52% as compared to $19.2 million with a gross margin of 44% for the same period a year ago. Gross profit for the 12 months ended June 30, 2023, increased by 24% to $73.2 million with a gross margin of 43% and as compared to $59.2 million with a gross margin of 41% for the same period a year ago.

截至 2023 年 6 月 30 日的年度設備銷售額增長 13%，達到 1.1 億美元，而上一年為 9,760 萬美元。設備銷售額的增長主要是由於 Alarm Lock 和 Marks 門鎖產品以及大陸門禁產品的銷售額增長，但部分被上述無線電銷售放緩所抵消。截至 2023 年 6 月 30 日止 3 個月的毛利潤增長 20%，達到 2,300 萬美元，毛利率為 52%，而去年同期為 1,920 萬美元，毛利率為 44%。截至 2023 年 6 月 30 日的 12 個月，毛利潤增長 24% 至 7,320 萬美元，毛利率為 43%，而去年同期為 5,920 萬美元，毛利率為 41%。

Gross profit for equipment sales for the 3 months ended June 30, 2023, increased 7% to $8.7 million with a gross margin of 30% as compared to $8.1 million with a gross margin of 27% for the same period a year ago. Gross profit for equipment sales for the 12 months ended June 30, 2023, increased 4% to $19.9 million with a gross margin of 18% and as compared to $19.1 million with a gross margin of 20% for the same period a year ago.

截至2023年6月30日的三個月，設備銷售毛利潤增長7%，達到870萬美元，毛利率為30%，而去年同期為810萬美元，毛利率為27%。截至 2023 年 6 月 30 日的 12 個月，設備銷售毛利潤增長 4%，達到 1,990 萬美元，毛利率為 18%，而去年同期為 1,910 萬美元，毛利率為 20%。

Gross profit for recurring revenues for the 3 months ended June 30, 2023, and increased 29% to $14.3 million with a gross margin of 89% as compared to $11.1 million with a gross margin of 87% for the same period a year ago. Gross profit for recurring revenues for the 12 months ended June 30, 2023, increased 33% to $53.4 million with a gross margin of 89% and as compared to $40 million with a gross margin of 87% for the same period a year ago.

截至 2023 年 6 月 30 日的三個月經常性收入毛利潤增長 29%，達到 1,430 萬美元，毛利率為 89%，而去年同期為 1,110 萬美元，毛利率為 87%。截至 2023 年 6 月 30 日的 12 個月中，經常性收入的毛利潤增長了 33%，達到 5,340 萬美元，毛利率為 89%，而去年同期為 4,000 萬美元，毛利率為 87%。

The increase in gross profit dollars for equipment sales for both the 3 and the 12 months ended June 30 and 2023 as well as the gross margin for equipment sales for the 3 months ended June 30, 2023, is primarily the result of higher locking sales, which also increased overhead absorption as partially offset by lower radio sales as well as higher prices of certain component parts. The company purchased these higher-priced components at a significant premium during the supply chain interruptions during the latter part of fiscal 2022 in order to continue to supply the company's radios that lead to the increased recurring revenue.

截至2023年6月30日止的3個月和12個月的設備銷售毛利潤以及截至2023年6月30日的3個月設備銷售毛利率的增加，主要是由於鎖定銷售額增加，這也增加了管理費用的吸收，但部分被無線電銷量下降以及某些零部件價格上漲所抵消。該公司在 2022 財年下半年供應鏈中斷期間以高價購買了這些價格較高的組件，以便繼續供應該公司的收音機，從而增加經常性收入。

The price of these components began decreasing during fiscal 2023, but was the primary reason for the 200 basis point reduction in equipment margins for fiscal 2023 as compared to the prior year. The increase in gross profit dollars for recurring service revenues for both the 3 and the 12 months ended June 30, 2023, and was due to the sales of the company's line of StarLink radios, which represents approximately 20% of total hardware sales. The continued increase in the gross margin for recurring revenue for both the 3 and the 12 months was primarily due to increased service revenues relating to the company's fire radios, which have higher monthly selling prices than the company's intrusion radios. Research and development costs for the quarter increased 14% to $2.4 million or 5% of sales as compared to $2.1 million or 5% of sales for the same period a year ago.

這些零部件的價格在 2023 財年開始下降，但這是 2023 財年設備利潤率比上一年下降 200 個基點的主要原因。截至2023 年6 月30 日的3 個月和12 個月，經常性服務收入的毛利潤均有所增加，這是由於該公司StarLink 無線電產品線的銷售所致，該產品線約佔硬件總銷售額的20%。前 3 個月和 12 個月的經常性收入毛利率持續增長，主要是由於與公司消防無線電相關的服務收入增加，該無線電的月銷售價格高於公司的入侵無線電。本季度的研發成本增加了 14%，達到 240 萬美元，佔銷售額的 5%，而去年同期為 210 萬美元，佔銷售額的 5%。

Research and development costs for the 12 months increased 16% to $9.3 million or 5% of sales as compared to $8 million or 6% of sales for the same period a year ago. The increase in dollars was due primarily to salary increases and some additional staff. Selling, general and administrative expenses for the quarter remained relatively constant at $8.9 million or 20% of net sales as compared to $8.9 million or 21% of net sales for the same period last year.

這 12 個月的研發成本增加了 16%，達到 930 萬美元，佔銷售額的 5%，而去年同期為 800 萬美元，佔銷售額的 6%。美元的增加主要是由於工資增加和一些額外的工作人員。本季度的銷售、一般和管理費用相對穩定，為 890 萬美元，占淨銷售額的 20%，而去年同期為 890 萬美元，占淨銷售額的 21%。

Selling, general and administrative expenses for the 12 months increased 2% to $33.6 million or 20% of net sales as compared to $32.9 million or 23% of sales for the same period last year. Operating income for the quarter increased 44% to $11.8 million as compared to $8.2 million for the same period last year. And operating income for the 12 months ended June 30, 2023, increased 66% to $30.3 million as compared to $18.2 million for the same period last year. The company's provision for income taxes for the 3 months ended June 30, 2023, increased by $1.1 million to $1.6 million, with an effective tax rate of 13% as compared to $476,000 with an effective tax rate of 6% for the same period a year ago, and the company's provision for income taxes for the 12 months ended June 30, 2023, and increased by $1.9 million to $4.1 million, with an effective tax rate of 13% as compared to $2.2 million with an effective tax rate of 10% for the same period a year ago.

這 12 個月的銷售、一般和管理費用增加了 2%，達到 3360 萬美元，占淨銷售額的 20%，而去年同期為 3290 萬美元，佔銷售額的 23%。本季度營業收入增長 44%，達到 1,180 萬美元，而去年同期為 820 萬美元。截至 2023 年 6 月 30 日的 12 個月營業收入增長 66%，達到 3,030 萬美元，而去年同期為 1,820 萬美元。截至2023年6月30日止3個月，公司所得稅撥備增加110萬美元至160萬美元，有效稅率為13%，而去年同期為476,000美元，有效稅率為6%之前，公司截至2023年6月30日的12個月的所得稅準備金增加了190萬美元，達到410萬美元，有效稅率為13%，而2023年的有效稅率為10%，為220萬美元。一年前的同一時期。

The increase in the provision for income taxes for both the 3 and the 12 months was primarily due to higher taxable income. The increase in the effective tax rate from 10% to 13% was primarily due to $3.9 million in nontaxable income from a onetime extinguishment of debt incurred in fiscal 2022 income. Net income for the quarter was a quarterly record $10.6 million or $0.28 per diluted share as compared to $7.5 million or $0.20 per diluted share for the same period last year, a 40% increase, and it represents 24% of sales.

前 3 個月和前 12 個月所得稅撥備的增加主要是由於應稅收入增加。有效稅率從 10% 增加至 13%，主要是由於 2022 財年收入中一次性清償債務產生了 390 萬美元的非應稅收入。本季度淨利潤為季度創紀錄的 1060 萬美元，即稀釋後每股收益 0.28 美元，而去年同期為 750 萬美元，即稀釋後每股收益 0.20 美元，增長 40%，佔銷售額的 24%。

Net income for the 12 months was $27.1 million was $0.73 per diluted share as compared to $19.6 million or $0.53 per diluted share for the same period last year. That's a 38% increase, and it represents 16% of net sales. Adjusted EBITDA for the quarter was a quarterly record $13 million or $0.35 per diluted share as compared to $9.3 million or $0.25 and per diluted share for the same period last year. That's a 41% increase, and it equates to an adjusted EBITDA margin of 29%.

12 個月的淨利潤為 2710 萬美元，即稀釋後每股收益 0.73 美元，而去年同期淨利潤為 1960 萬美元，即稀釋後每股收益 0.53 美元。增幅為 38%，占淨銷售額的 16%。本季度調整後 EBITDA 為季度創紀錄的 1300 萬美元，即稀釋後每股 0.35 美元，而去年同期為 930 萬美元，即稀釋後每股 0.25 美元。增幅為 41%，相當於調整後 EBITDA 利潤率為 29%。

Adjusted EBITDA for the 12 months was $34.3 million or $0.93 per diluted share as compared to $22.6 million per diluted share for the same period last year. That's a 52% increase and equates to an adjusted EBITDA margin of 20%. Net income and earnings per share for last year's 12-month period reflect other income of $3.9 million, which resulted from the aforementioned extinguishment of debt during the quarter ended September 30, 2021. Without such benefit, net income and earnings per share for the 12 months ended June 30, 2022, would have been $15.7 million and $0.43, respectively.

12 個月的調整後 EBITDA 為 3,430 萬美元，即稀釋後每股 0.93 美元，而去年同期為稀釋後每股 2,260 萬美元。增幅為 52%，相當於調整後 EBITDA 利潤率為 20%。去年12 個月期間的淨利潤和每股收益反映了390 萬美元的其他收入，這是由於上述截至2021 年9 月30 日的季度的債務清償而產生的。如果沒有此類收益，去年12 個月的淨利潤和每股收益截至 2022 年 6 月 30 日止的月份將分別為 1,570 萬美元和 0.43 美元。

Moving on to the balance sheet. At June 30, 2023, the company had $66.7 million in cash and cash equivalents, other investments and marketable securities, and that compares to $46.8 million at June 30, 2022. Working capital, defined as current assets less current liabilities, the $111.7 million at June 30, 2023, and that compared with working capital of $93.1 million at June 30, 2022. The Current ratio, defined as current assets divided by current liabilities, was 6.7:1 at June 30, 2023, and it was 4.5:1 at June 30, 2022. The Cash provided by operating activities for the 12 months ended June 30, 2023, was $24.7 million, and that compared to $8.3 million for the same period last year. and that's a 198% increase.

繼續看資產負債表。截至2023 年6 月30 日，該公司擁有6,670 萬美元的現金和現金等價物、其他投資和有價證券，而截至2022 年6 月30 日，該數字為4,680 萬美元。營運資金定義為流動資產減去流動負債，截至2022 年6 月30 日，該公司的流動資產為1.117 億美元。 2023 年6 月30 日的流動資金為9,310 萬美元，而截至2022 年6 月30 日的流動資金為9,310 萬美元。流動比率（定義為流動資產除以流動負債）在2023 年6 月30 日為6.7:1，在2023 年6 月30 日為4.5:1。 2022 年6 月30 日。截至2023 年6 月30 日的12 個月，經營活動提供的現金為2,470 萬美元，而去年同期為830 萬美元。增長了 198%。

CapEx for the quarter was $1.2 million versus $293,000 and in the year ago period. And for the 12 months ended June 30, 2023, was $2.96 million compared to $1.5 million in the prior year period, and we have no debt.

本季度資本支出為 120 萬美元，去年同期資本支出為 293,000 美元。截至 2023 年 6 月 30 日的 12 個月，我們的債務為 296 萬美元，而去年同期為 150 萬美元，而且我們沒有債務。

Finally, due to the previously announced need to restate the first, second and third fiscal quarters of fiscal 2023, the company will delay filing its Form 10-K for up to 15 calendar days. We will file the amended 10-Qs as soon as the restatement process is completed with our current expectation being sometime this week.

最後，由於之前宣布需要重述 2023 財年第一、第二和第三財季的數據，該公司將推遲提交 10-K 表格最多 15 個日曆日。重述流程完成後，我們將立即提交修訂後的 10-Q，目前的預期是本周某個時間。

That concludes my formal remarks, and I would now like to return the call back to Dick.

我的正式發言到此結束，現在我想給迪克回電話。

Kevin, thank you. For fiscal year 2023 showed continued growth with record sales and profits, and we look forward to breaking our previous record of 23 consecutive quarters of growth, which we had prior to the COVID pandemic. We are not satisfied with the equipment margins of 18% during our fiscal 2023. However, we are pleased to have generated $27 million in net income which is 16% of net sales. Also $34 million in adjusted EBITDA, equaling 20% EBITDA. Margins is another positive takeaway from the fiscal year results.

凱文，謝謝你。 2023 財年，我們的銷售額和利潤持續增長，創下歷史新高，我們期待打破之前在新冠疫情大流行之前創下的連續 23 個季度增長的紀錄。我們對 2023 財年 18% 的設備利潤率並不滿意。不過，我們很高興創造了 2700 萬美元的淨利潤，占淨銷售額的 16%。還有 3400 萬美元的調整後 EBITDA，相當於 20% 的 EBITDA。利潤率是本財年業績的另一個積極收穫。

As we enter into fiscal 2024, we believe that most of the additional material and freight costs due to the supply chain crisis are behind us. This should bode well for improved equipment margins. The commercial fire log business is a mandatory nondiscretionary items. Commercial buildings must have and maintain a fire alarm system in order to receive the certificate of occupancy.

隨著我們進入 2024 財年，我們相信供應鏈危機造成的大部分額外材料和貨運成本已經過去。這對於提高設備利潤來說是個好兆頭。商業防火原木業務屬於強制性非自由裁量項目。商業建築必須擁有並維護火災報警系統才能獲得入住證書。

Given the high profitability and essential nature of this business, we focus on this as a key area of our resources. Recurring revenue generated growth, increasing 27% for the quarter and 30% for the fiscal year. The annual run rate for recurring revenue is now approximately $67 million as of July 2023. We estimate that there are millions of commercial buildings of all types such as offices, hospitals, schools, coffee shops, gas speed restaurants and others that still require upgrades from old-fashioned copper phone lines. Our StarLink radios have the widest coverage for both AT&T and Verizon service and which feature sets, which our dealers love.

鑑於該業務的高盈利能力和本質，我們將其作為我們資源的關鍵領域。經常性收入帶來了增長，本季度增長 27%，本財年增長 30%。截至2023 年7 月，經常性收入的年運行率約為6700 萬美元。我們估計，有數百萬座各種類型的商業建築，如辦公室、醫院、學校、咖啡店、加油餐廳和其他建築，仍然需要升級老式銅電話線。我們的 StarLink 收音機擁有最廣泛的 AT&T 和 Verizon 服務覆蓋範圍以及我們的經銷商喜愛的功能集。

We continue to focus on our previously mentioned goals of $150 million run rate in recurring revenue and $150 million of equipment revenue by the end of fiscal 2026. While the exact time frame for hitting these goals is uncertain, achievement of those goals as well as our gross margin goals of 80% to recurring revenue and it was 89% for fiscal 2023 and 50% of equipment revenues could generate EBITDA margins in excess of 45%.

我們繼續關注之前提到的目標，即到2026 財年末，經常性收入運行率達到1.5 億美元，設備收入達到1.5 億美元。雖然實現這些目標的確切時間框架尚不確定，但實現這些目標以及我們的目標經常性收入的毛利率目標為 80%，2023 財年為 89%，設備收入的 50% 可以產生超過 45% 的 EBITDA 利潤率。

Full administration are focused on the needs of security solutions as more school shootings continue to happen. We were pleased to learn that recently University of Arizona recently installed over 700 Trilogy electronic locks on the campus. Our fully integrated solutions to the school security sector generate healthy margins for our business. And now more than ever, we are laser-focused on further penetration of the school security market. which is comprised of approximately 130,000 K-12 schools and 5,000 colleges and universities across the country. Offering seamless security solutions, which allow for our dealers and us to generate recurring revenue streams is central to our strategy.

隨著更多校園槍擊事件不斷發生，全面管理的重點是安全解決方案的需求。我們很高興地獲悉，近日，亞利桑那大學在校園內安裝了700多把Trilogy電子鎖。我們針對學校安全部門的完全集成解決方案為我們的業務帶來了可觀的利潤。現在，我們比以往任何時候都更加專注於進一步滲透學校安全市場。由全國約 130,000 所 K-12 學校和 5,000 所學院和大學組成。提供無縫的安全解決方案，使我們的經銷商和我們能夠產生經常性收入流，這是我們戰略的核心。

The recently launched Air Access product will enable us to generate recurring revenue from all divisions of the company. Air Access will generate recurring revenue from locking and access control, which has never been done before. Air Access is the industry's first cellular-based access control system which we believe is a large market opportunity. The product continues to make strides in the market, and we expect more momentum in the future as our sales teams are actively educating unlocking and access control dealers, about this new exciting opportunity for them with air access.

最近推出的 Air Access 產品將使我們能夠從公司的所有部門產生經常性收入。 Air Access 將從鎖定和訪問控制中產生經常性收入，這是以前從未做過的。 Air Access 是業界第一個基於蜂窩的訪問控制系統，我們認為這是一個巨大的市場機會。該產品繼續在市場上取得長足進步，我們預計未來會有更大的發展動力，因為我們的銷售團隊正在積極教育解鎖和訪問控制經銷商，讓他們了解這一令人興奮的空中訪問新機會。

At the recent ISC West trade show back in March, we unveiled a new product with a built-in recurring revenue radio. It is called PRIMA, which we and our thousands of dealers are very excited about. PRIMA is a revolutionary super-long panel with a full color, 7-inch LCV touch screen for security, fire, video and automation, featuring intuitive use and set up smart with self-healing WiFi and video and door bells that prevent dealer service goals and at a very powerful back end.

在三月份最近舉行的 ISC West 貿易展上，我們推出了一款帶有內置經常性收入收音機的新產品。它被稱為 PRIMA，我們和我們的數千名經銷商對此感到非常興奮。 PRIMA 是一款革命性的超長面板，配有全彩7 英寸LCV 觸摸屏，適用於安全、消防、視頻和自動化，具有直觀使用和智能設置功能，具有自我修復WiFi 和視頻以及門鈴，可防止經銷商服務目標並且有一個非常強大的後端。

PRIMA also was named on security sales and Integration magazine as the most valuable product in 2023. We expect to have this available to dealers in early fiscal 2024. Our R&D team remains hard at work developing even more products for the future, which will help grow our recurring revenue business. We've experienced tremendous success over the last several years, growing our recurring revenue and believe the growth we have witnessed will continue at a healthy rate.

PRIMA 還被安全銷售和集成雜誌評為2023 年最有價值的產品。我們預計在2024 財年初向經銷商提供該產品。我們的研發團隊仍在努力開發更多面向未來的產品，這將有助於增長我們的經常性收入業務。在過去的幾年裡，我們取得了巨大的成功，經常性收入不斷增長，並相信我們所見證的增長將繼續以健康的速度增長。

Lastly, I mentioned earlier, we are excited to announce the increase in our quarterly dividend by 28% to $0.08 per share to shareholders of record on September 1, 2023. We believe that it is important to balance our capital allocations priorities, including investing in growth opportunities, maintaining a strong balance sheet and returning capital to our shareholders. We will begin our question-and-answer portion of this call in a moment. Our fiscal year 2023 generated strong sales and profitability. There is a pristine balance sheet and no debt. We believe we can continue this growth in fiscal 2024 and beyond. I would like to thank everyone for their support and for joining us in the exciting future we have. Our formal remarks are now concluded.

最後，我之前提到，我們很高興地宣布，將於2023 年9 月1 日向登記在冊的股東增加季度股息28%，達到每股0.08 美元。我們認為，平衡我們的資本分配優先事項非常重要，包括投資於增長機會，保持強勁的資產負債表並向股東返還資本。我們稍後將開始本次電話會議的問答部分。我們的 2023 財年銷售額和盈利能力強勁。有原始的資產負債表，沒有債務。我們相信我們可以在 2024 財年及以後繼續保持這種增長。我要感謝大家的支持，並感謝大家加入我們，共同創造令人興奮的未來。我們的正式發言現在結束了。

We'd now like to open the call for a Q&A session. Operator, please proceed.

我們現在要開始問答環節。接線員，請繼續。

(Operator Instructions)

（操作員說明）

And our first question comes from Jim Ricchiuti from Needham & Company.

我們的第一個問題來自 Needham & Company 的 Jim Ricchiuti。

So I wanted to talk a little bit about the puts and takes in the radio business. I mean it sounds like you continue to see strong demand for fire radios and where the overhang is in the channel is on the intrusion StarLink radios. So 2 questions. Number one is, can you talk a little bit about how you see the channel inventories being worked down on the -- for the intrusion StarLink radios, what kind of cells or are you hearing from your channel partners? And then I have a follow-up question as it relates to the fire radio business.

所以我想談談廣播行業的投入和投入。我的意思是，聽起來您繼續看到對消防無線電的強勁需求，而通道中的懸垂物是入侵星鏈無線電。所以有2個問題。第一是，你能談談你如何看待正在處理的渠道庫存——對於入侵星鏈無線電，什麼樣的細胞或者你從渠道合作夥伴那裡聽到了什麼？然後我有一個後續問題，因為它與消防無線電業務有關。

Okay, Jim. So we get statistics from our key distributors that we watch very closely. And what we see with a couple of these distributors, not all of them is a glut of inventory on the smaller radio and it seems to have come about because they loaded up on radios during the height of the preparedness for the 3G sunset. 3G sunset for Verizon was January 2 or 3 of 2023.

好吧，吉姆。因此，我們從我們密切關注的主要分銷商那裡獲得了統計數據。我們在這些分銷商中看到的情況是，並非所有分銷商的小型收音機庫存過剩，這似乎是因為他們在為 3G 日落做準備的高峰期增加了收音機庫存。 Verizon 的 3G 日落時間為 2023 年 1 月 2 日或 3 日。

Nobody wanted to really get caught short, and not everybody could deliver radios, (inaudible). We've talked about this on prior calls. We were able to deliver when others couldn't and that ability to deliver has helped us. We've picked up more business, some large accounts, which we've talked about. But these distributors, they didn't want to get caught short, they bought up a lot and they bought it for -- because of the 3G sunset because of lack of delivery from others.

沒有人願意真正陷入困境，也不是每個人都能提供收音機（聽不清）。我們在之前的電話會議中已經討論過這個問題。當其他人無法交付時，我們能夠交付，這種交付能力對我們很有幫助。我們已經獲得了更多的業務，一些大客戶，我們已經討論過。但這些分銷商不想陷入困境，他們買了很多東西，他們買的目的是——因為其他人交貨不足，導致 3G 日落。

And now they have too much because now the things have settled down, the 3G sunset is finished. They have to work that inventory down and we'll help them. This happens periodically all the time. The demand for radios as a whole is very good. That's why you saw it grew by 27%. And for the quarter versus a year ago. That's why the run rate went from $63 million to $67 million, and we can't judge the strength of recurring revenue based on a couple of distributors having too much of 1 type of radio. So we'll work with them to move it, we believe it will move, and we still feel very good and confident about our recurring revenue and its growth for the future.

現在他們已經擁有太多了，因為現在事情已經塵埃落定，3G 的日落已經結束。他們必須減少庫存，我們會幫助他們。這種情況一直定期發生。收音機的整體需求非常好。這就是為什麼你看到它增長了 27%。本季度與去年同期相比。這就是運行費從 6300 萬美元增至 6700 萬美元的原因，而且我們無法根據幾個分銷商擁有過多的一種類型的收音機來判斷經常性收入的強度。因此，我們將與他們合作來推動它，我們相信它會推動它，我們仍然對我們的經常性收入及其未來的增長感到非常好和充滿信心。

Let me add one more thing. So the radios that Kevin is talking about are the low-cost residential, small business pizzeria-type radios, and that business is moving along but we had to subscribe into the distributors because they ask them, and we produce a little higher them.

讓我再補充一件事。因此，凱文談論的收音機是低成本住宅、小型企業披薩店類型的收音機，該業務正在發展，但我們必須向分銷商訂閱，因為他們要求他們，我們生產了更高一點的收音機。

They're a little backed up. But what we -- and that is a radio that's added to an existing alarm system to replace the copper. So we expect that to continue. The sell-through has been -- is good on that. But the glut will be eroded down and will get more normalized.

他們有一點支持。但我們——那就是在現有警報系統中添加無線電以取代銅線。所以我們預計這種情況會持續下去。銷量一直很好。但供過於求的局面將被削弱，並變得更加正常化。

At the ISC show out West a few months ago, we showed the entire alarm system with a built installing radio with technology beyond everything in the marketplace, it was a tremendous fit so that radio, that black radio is now being built into a complete control panel for automation, residential, small business, and that will be out in the next 60 days.

幾個月前在西部舉行的ISC 展會上，我們展示了帶有內置安裝無線電的整個報警系統，其技術超越了市場上的所有產品，它非常適合，因此無線電，黑色無線電現在被內置到一個完整的控制中適用於自動化、住宅、小型企業的面板，將在未來 60 天內推出。

So what's going to be contributing to the recurring monthly revenue is not only the sell-through of the black radios, which upgrade the existing alarm systems from copper, but it's also this brand new, unique, long panel radio, which will be the new work. And these are the type of things we do in our engineering department with 8 additional products, which are going to add a lot of recurring revenue to the company going forward. And it's a very exciting future we have with this. And I want everybody to understand that.

因此，對每月經常性收入做出貢獻的不僅是黑色收音機的銷售，它是對現有銅報警系統的升級，而且也是這種全新的、獨特的長面板收音機，它將成為新的收音機。工作。這些是我們在工程部門所做的事情，還有 8 種附加產品，這將為公司未來增加大量經常性收入。我們將擁有一個非常令人興奮的未來。我希望每個人都能理解這一點。

The black radios are for retrofit. And that will continue because you've got millions of jobs that still need to be upgraded. And the new PRIMA radio is a complete alarm system for new jobs and you know that people need more security than ever before, we need security for homes, we need security for businesses, and that's what PRIMA will do with a built-in recurring radio, where we get recurring revenue as well as a dealer. So that's how the picture looks.

黑色收音機用於改裝。這種情況還將持續下去，因為仍有數百萬個工作崗位需要升級。新的 PRIMA 收音機是針對新工作的完整警報系統，您知道人們比以往任何時候都需要更多的安全性，我們需要家庭安全，我們需要企業安全，這就是 PRIMA 通過內置循環收音機所做的事情，我們在這裡獲得經常性收入以及經銷商。這就是圖片的樣子。

Got it. Just with respect to PRIMA, let me just ask the question. What kind of expectations do you have for this product? And maybe Kevin, how would you characterize the margin profile of this product. And then lastly, just on the Fire business, fire radio business. Do you anticipate -- you've had several strong quarters. Does this begin to plateau for you?

知道了。關於 PRIMA，我想問一下這個問題。您對這款產品有什麼樣的期待？也許凱文，您如何描述該產品的利潤狀況？最後，關於消防業務、消防無線電業務。你是否預計——你已經經歷了幾個強勁的季度。這對你來說是否開始趨於穩定？

Fire radios -- you can answer that.

消防無線電——你可以回答這個問題。

You do the fire radios please, and then I'll talk about the PRIMA and what its potential is.

請你做消防無線電，然後我會談談 PRIMA 及其潛力。

Fire radios talked about this is mandated. It has to be -- you have to have a working fire radio in a building. They got to get away from copper. This is what we keep talking about that there's a lot of buildings and buildings are not just high rises when you think of a building, think of buildings coming in all sizes and shapes. They all have to get away from copper. Copper is not being supported. So we believe, A, it's mandated, B, we either have to get away from it. And C, there's millions more to come, more changes to come. So as a result of that, yes, fire radios, we believe is going to continue to be strong for years to come.

消防電台談到這是強制性的。它必須是——建築物內必須有一個可以工作的消防無線電。他們必須遠離銅。這就是我們一直在談論的，有很多建築物，而且當您想到建築物時，建築物不僅僅是高樓，想到各種尺寸和形狀的建築物。他們都必須遠離銅。不支持銅。所以我們相信，A，這是強制性的，B，我們要么必須擺脫它。 C，還有數以百萬計的事情即將發生，更多的變化即將發生。因此，是的，我們相信消防無線電在未來幾年將繼續保持強勁勢頭。

It's our #1 radio has the best margins more than 50% of our total radios. You see what our margins are in recurring revenue. The 89%, it was 89% for the whole year. That's because fire radios because we get more money for fire radio than the other types. So we believe this strength is here, and it's not going anywhere. And don't read into anything because of a lot of inventory on the plaque radios, Fire has moved very nicely -- continues to move.

這是我們排名第一的收音機，利潤率最高，占我們收音機總數的 50% 以上。您可以看到我們的經常性收入利潤率是多少。 89%，全年都是89%。那是因為消防無線電，因為我們從消防無線電中獲得的錢比其他類型的要多。所以我們相信這種力量就在這裡，不會消失。不要解讀任何東西，因為牌匾收音機上有大量庫存，Fire 移動得非常好 - 繼續移動。

Now when we stick a talk about PRIMA, when we sell PRIMA, the recurring revenue on that is not like it is for fire radios. It's less but it's incremental recurring revenue. When we did our 150 goals of recurring and hardware sales, we weren't counting on PRIMA, we didn't even know about PRIMA. PRIMA is new incremental recurring revenue. It will help us get to our goals that much sooner. We do get less per month than we would for a fire radio. So my goal for recurring revenue when I first did the goals was 80%. We're at 89%. We've got plenty of room between the gold and the actual. So we'll watch it. We'll see how it goes with the recurring from PRIMA.

現在，當我們繼續談論 PRIMA 時，當我們出售 PRIMA 時，其經常性收入與消防無線電不同。雖然少了一些，但它是增量經常性收入。當我們實現 150 個經常性銷售和硬件銷售目標時，我們並沒有指望 PRIMA，我們甚至不知道 PRIMA。 PRIMA 是新的增量經常性收入。它將幫助我們更快地實現我們的目標。我們每個月得到的收入確實比消防收音機少。因此，當我第一次實現目標時，我的經常性收入目標是 80%。我們已經完成了 89%。我們在黃金和實際之間有足夠的空間。所以我們會關注它。我們將看看 PRIMA 的循環情況如何。

Right. So PRIMA is the new work. The black radio is the retrofitting the copper. I figure we got 5 to 8 years of retrofitting copper with black radios because there's millions and millions of jobs that have to be done and the dealers are doing in as necessary. A lot of dealers don't go out and speak to their customers about upgrading away from copper. They wait until there's an event, maybe the phone companies turns (inaudible) issues with the cracking old copper lines, and then they go in.

正確的。所以PRIMA是新作品。黑色收音機是銅的改裝件。我認為我們需要 5 到 8 年的時間來用黑色收音機改造銅製收音機，因為有數以百萬計的工作需要完成，而經銷商正在根據需要完成。許多經銷商不會出去與客戶談論如何升級不再使用銅。他們等到有事件發生，也許電話公司用破裂的舊銅線解決（聽不清）問題，然後他們就進去了。

Some dealers go in and start promoting right away. But we have a great radio in the black radio, and it's moving out nicely. But the deal is putting a lot of new jobs. And our new PRIMA is for new work. And what's going to happen is there are millions of jobs that have to be done with new radios -- new radio panels. And there are some on the market now, but they're antiquated compared to what PRIMA is going to be. Everybody at the show.

有的經銷商一進去就開始促銷。但我們的黑色收音機裡有一台很棒的收音機，而且運行得很好。但這筆交易帶來了很多新的就業機會。我們的新 PRIMA 是為了新的工作。將會發生的事情是，數以百萬計的工作必須使用新的無線電——新的無線電面板來完成。現在市場上有一些，但與 PRIMA 相比，它們已經過時了。所有人都在展會上。

The dealers came over to the booth. They see the way the door cameras work. The way the WiFi is automatically self-healed because WiFi systems signals get lost on the premise that this self-heals fixes that. Nothing on the market does anything like that. It is a great boon to the dealers because they're not going to have to roll trucks to repair.

經銷商們紛紛來到展位前。他們了解門口攝像頭的工作方式。 WiFi 自動自癒的方式是因為 WiFi 系統信號丟失，但前提是這種自愈可以解決這個問題。市場上沒有任何東西能做到這一點。這對經銷商來說是一個巨大的福音，因為他們不必開動卡車來修理。

We set up the WiFi system to do things with the camera as far as the camera going off circuit. PRIMA does it all. And it's a beautiful-looking product and we expect great results. So we're going to have, as far as I can see into the future, lots of business at PRIMA, as well as the retrofitting of the black radios and Fire so all these things are combined together and both are a very strong future.

我們設置了 WiFi 系統來對相機進行操作，直到相機斷電為止。 PRIMA 做到了這一切。這是一款外觀漂亮的產品，我們期待取得出色的效果。因此，據我所知，未來，我們將在 PRIMA 開展大量業務，並改造黑色收音機和 Fire，因此所有這些東西結合在一起，都是一個非常強大的未來。

Thank you. And our next question comes from Matt Pfau from William Blair.

謝謝。我們的下一個問題來自威廉·布萊爾的馬特·普福。

Great. Wanted to first start on the restatement, and I was just hoping you could better explain to us what happened here from an accounting perspective. It seems a little bit counterintuitive that both inventory and would be overstated while COGS were understated. So what happened that drove that? And then on the cash component, how did that sort of tie out when the accounting was wrong on the other side of the financial statements.

偉大的。想首先開始重述，我只是希望你能更好地從會計角度向我們解釋這裡發生的事情。庫存和銷貨成本都被高估，而銷貨成本卻被低估，這似乎有點違反直覺。那麼到底發生了什麼導致了這種情況呢？然後在現金部分，當財務報表另一面的會計錯誤時，這種關係是如何联繫起來的？

So Matt, the inventory for the quarters that succeeded the June 30, 2022 physical inventory audited statements, the quarters that followed it, which was the September quarter the December quarter and the March quarter of fiscal 2023. The inventory was valued using values from the six thirty, twenty two audited numbers. What that means is take as an example, if a component was valued at $50 at June 30, 2022.

因此，馬特，是繼2022 年6 月30 日實物庫存審計報表之後的季度的庫存，以及隨後的季度，即2023 財年的9 月季度、12 月季度和3 月季度。庫存是使用以下值進行估值的：六點三十分，二十二個審計數字。這意味著，以 2022 年 6 月 30 日某個組件的價值為 50 美元為例。

That same $50 was used to value the inventory for the first quarter, and let's say, the second quarter and let's say, the third quarter. The cost of that component was coming down, no longer $50, $5 using this one example. You value the inventory at $50, you're overstating your inventory when you put a valuation on your balance sheet. If you're overstating your inventory and your balance sheet, that means the other side of the equation is you're understating your cost of goods sold. It has nothing to do with cash.

同樣的 50 美元被用來評估第一季度的庫存，假設第二季度，假設第三季度。該組件的成本正在下降，不再是 50 美元，在這個例子中是 5 美元。您對庫存的估價為 50 美元，當您在資產負債表上進行估價時，您高估了庫存。如果您高估了庫存和資產負債表，則意味著您低估了銷售成本。這與現金無關。

This is all book entries Cash is unaffected. Cash flow unaffected cash from ops, none of that is affected. This is strictly overstated your inventory -- it means you understated your cost of goods sold. If you understated, your cost of goods sold, that means you overstated your net income. And that's what it is now. we're going to fix this, and we've begun the process of fixing it.

這是所有賬簿條目現金不受影響。現金流不影響運營現金，這些都沒有受到影響。這完全高估了您的庫存——這意味著您低估了銷售商品的成本。如果您低估了銷售成本，則意味著您高估了淨收入。現在就是這樣。我們將解決這個問題，並且我們已經開始了解決它的過程。

You can't use the prior year's physical inventory valuation going forward. normal conditions, it could use it, but in fluctuating pricing times and who knows what the times are going to be going forward times seem to be better now, the fluctuations seem to be gone. But we're going to have a system where we measure every fluctuation during the quarters and we utilize that new price if there is a new price to value the inventory in each quarter.

今後您不能使用上一年的實際庫存估價。正常情況下，它可以使用它，但在定價波動的情況下，誰知道未來會發生什麼，現在時間似乎更好，波動似乎消失了。但我們將有一個系統來衡量每個季度的每次波動，如果每個季度有新的價格來評估庫存，我們就會利用新的價格。

We'll do it at the beginning the first day after the quarter end, so on October 1, let's say, for the upcoming end of the quarter, we'll measure every fluctuation that exists up or down and we'll make sure that the inventory valuation for the quarter utilizes the correct price.

我們將在季度結束後的第一天開始時進行此操作，因此，在 10 月 1 日，我們將測量即將到來的季度末的每一個向上或向下的波動，並確保該季度的庫存估價採用正確的價格。

And that's the best way I could explain it, Matt. It's nothing to do with cash for those that took accounting in school, it's -- you've got to credit your inventory, lower your inventory, you've got to debit your cost of goods sold, and that reduces profits. That's what it was.

這是我能解釋的最好方式，馬特。對於那些在學校學習會計的人來說，這與現金無關，它是——你必須貸記你的庫存，降低你的庫存，你必須藉記你的銷售成本，這會減少利潤。就是這樣。

Got it. And then with the stock down significantly from the highs, are you considering repurchasing any stock or is management team considering any personal purchases themselves?

知道了。然後，隨著股票從高點大幅下跌，您是否正在考慮回購任何股票，或者管理團隊是否正在考慮自己進行任何個人購買？

That's all on the table. And it's possible we will do that. The first things first, let's get the Qs, the restated Qs filed. We expect to do that this week. Let's get the K filed. We expect to do that next week. And then we could look at buybacks and personal buying all this it's all on the table. Let's get this -- our house in order with our filings and we go from there.

這就是所有的事情了。我們有可能會這樣做。首先，讓我們獲取問題，即已提交的重述問題。我們預計本週會這樣做。讓我們把 K 歸檔。我們預計下週就會這樣做。然後我們可以看看回購和個人購買，所有這些都擺在桌面上。讓我們把這個——我們的房子和我們的文件整理好，然後我們就從那裡開始。

Got it. Last one for me, just on the radio component of the equipment hardware. I think you called out that was 20% of equipment sales, not sure if that was for the quarter or the full year, but how would that compare to the year-ago period from a percentage of sales perspective?

知道了。對我來說，最後一個是關於設備硬件的無線電組件。我認為您指出這是設備銷售額的 20%，不確定這是季度還是全年，但從銷售額百分比的角度來看，這與去年同期相比如何？

That was for the quarter, and it would have been greater than the prior year's periods because in the prior year's period, the radios were stronger in the locking wasn't as strong as it just was. So I don't have the exact stat in front of me, but I could give you that maybe at a later point, but I'm sure it was a much -- it was a higher percentage. I wouldn't even say much higher, it was a higher percentage.

這是本季度的數據，它會比去年同期的水平更高，因為在去年同期，無線電更強，但鎖定並不像以前那麼強。所以我面前沒有確切的統計數據，但也許稍後我可以給你，但我確信這是一個更高的百分比。我什至不會說更高，只是更高的百分比。

And our next question comes from Jaeson Schmidt from Lake Street Capital.

我們的下一個問題來自 Lake Street Capital 的 Jaeson Schmidt。

Just looking at the inventory digestion situation. Just curious how long you think that will last? I mean, obviously, it will impact the September quarter, but do you think this bleeds into the December quarter?

就看庫存消化情況。只是好奇你認為這種情況會持續多久？我的意思是，顯然，這會影響 9 月份的季度，但您認為這會影響到 12 月份的季度嗎？

Well, I just want to make sure everybody understands -- it's one radio, one type of radio, and it's with a couple of distributors, not everything, and it's not with every distributor. We're going to work hard to move it through these distributors. This -- like I've said earlier, this has happened in the past. Where distributors load up on a product and they need help moving it through. That's what we're here for. We can help them. My guess, and it's just a guess, it'll take a couple of quarters to move it through. We'll work really hard to do this, but that's how it looks for right now.

好吧，我只是想確保每個人都理解 - 這是一種收音機，一種類型的收音機，它與幾個經銷商一起使用，而不是所有東西，也不是每個經銷商都使用。我們將努力通過這些分銷商進行銷售。這——就像我之前說過的，這在過去發生過。分銷商裝載產品並需要幫助來運輸它的地方。這就是我們來這裡的目的。我們可以幫助他們。我的猜測，這只是猜測，需要幾個季度才能完成。我們會非常努力地做到這一點，但這就是現在的情況。

Okay. That's helpful. And then just as a follow-up, looking at OpEx, it sounds like there could be some incremental costs associated with better accounting controls, et cetera, how should we think about OpEx trending for fiscal '24?

好的。這很有幫助。然後，作為後續行動，看看運營支出，聽起來可能會有一些與更好的會計控制相關的增量成本，等等，我們應該如何考慮 24 財年的運營支出趨勢？

Yes, there's going to be a few things we're going to have to spend some money on won't hesitate spending the money. We have the money, but software upgrades, personnel. Those are the 2 main things that I can point to that would make our OpEx more than it was in fiscal 2023. If I'm putting a number on it, I would say let's assume $1 million more in SG&A in '24 versus '23 for this type of thing.

是的，有些事情我們必須花一些錢，我們會毫不猶豫地花錢。我們有錢，但有軟件升級、人員。我可以指出的兩件主要事情將使我們的運營支出超過 2023 財年。如果我給出一個數字，我會說讓我們假設 24 年的 SG&A 比 23 年多 100 萬美元對於這種類型的事情。

And our next question comes from Chad Bennett of Craig-Hallum. Mr. Bennett, your line is open.

我們的下一個問題來自 Craig-Hallum 的 Chad Bennett。貝內特先生，您的線路已接通。

Moving on. We have Raj Sharma from B. Riley.

繼續。我們有來自 B. Riley 的 Raj Sharma。

I just wanted to understand the alarm sales. If you look at the composition in Q4 show a pretty substantial decline of about 33% year-on-year. How much of that impact do you think was from the Verizon sunset? And -- and you -- I think you commented that the dealers they started buying up, there was a lot of activity. Was that activity about 2, 3 quarters prior to the sunset date of Jan 2?

我只是想了解一下警報器的銷售情況。如果你看一下第四季度的構成，就會發現同比大幅下降了約 33%。您認為這種影響有多少是來自 Verizon 的日落？還有你，我想你評論說他們開始收購經銷商，有很多活動。該活動是在 1 月 2 日日落之前大約 2、3 個季度嗎？

Yes. And then it was prior. Yes. Well, I'll answer this part first, then you could follow up. It was before they didn't want to be caught short. So they weren't going to start buying it January or even December. By then, they wanted to have it in stock. So this led up to the sunset, but like the June quarter, June of '22, was at its height. And even the September quarter of fiscal '23 to some degree, after that, it was over. The guys were they had to be in position to have equipment because the sunset was upon them.

是的。然後是之前的事情。是的。嗯，我先回答這部分，然後你再跟進。那是在他們不想被抓住之前。所以他們不會在一月甚至十二月開始購買。到那時，他們希望有庫存。因此，這導致了日落，但就像 6 月季度一樣，22 年 6 月也達到了頂峰。甚至在某種程度上，23 財年的 9 月份季度，在那之後就結束了。這些人必須就位並攜帶設備，因為日落在他們身上。

So we saw a lot of activity and again, it wasn't just because of the sunset. It's also because of delivery. We were one of the few manufacturers who could deliver radios during these crazy times. And as I've said before, it was the crazy times was almost like a blessing in disguise because it allowed us to pick up some really big dealers, which we've talked about before.

所以我們看到了很多活動，這不僅僅是因為日落。也是因為送貨。我們是少數能夠在這些瘋狂時期提供收音機的製造商之一。正如我之前所說，那是一個瘋狂的時代，幾乎就像因禍得福，因為它讓我們能夠找到一些真正的大經銷商，我們之前已經討論過。

And these big dealers they couldn't get delivery. They got to look at our product. They got to see what our radios were all about. The fire radios is the one I'm talking about, and they made the fire radios, their radio of choice. And that probably wouldn't have happened if delivery was going on from the competitors, but they couldn't deliver we could. They had guys who couldn't get product, they were nervous. You had the 3G sunset. You have this radiomania going on. Which was at its high in June of 2022, continued in September of '22, which is Q1 of fiscal '23. And then as the year progressed, it normalized our cost didn't die, normalized, demand became more normal, and it's still good demand. So just because we had this heightened situation, we shouldn't feel like the bottom is dropping out. Business is still strong. The recurring stats are still good. We did have this situation.

而這些大經銷商卻拿不到貨。他們必須看看我們的產品。他們必須了解我們的收音機的用途。我說的是消防收音機，他們製造了消防收音機，這是他們的首選收音機。如果競爭對手繼續交付，那麼這種情況可能就不會發生，但他們無法交付我們可以交付的產品。他們有些人無法獲得產品，他們很緊張。你有3G日落。你正在經歷這種無線電狂熱。這種情況在 2022 年 6 月達到最高點，並持續到 22 年 9 月，即 23 財年第一季度。然後隨著時間的推移，我們的成本正常化並沒有消亡，正常化，需求變得更加正常，而且仍然是良好的需求。因此，僅僅因為我們遇到了這種嚴重的情況，我們就不應該感到底部正在下降。生意依然強勁。重複統計數據仍然不錯。我們確實有過這樣的情況。

It was a great thing for us to ship these radios when our competitors couldn't do because once those radios go in, we picked up brand new market share quickly because from the competitors, and that recurring revenue stream continues on forever. So it was a blessing. Some of the distributors said we want to capture the volume of Napco radios, and they bought a lot of radios to have in their stock and they would never run out because they didn't know when radios would be available from others. So they moved everybody into that (inaudible), and they bought unusual amounts. That's skewed it a little bit. But the radio business is strong, and it's going to get stronger. And with our PRIMA product, and the fact that more copper has to be converted to radio, the future is very, very bright.

當我們的競爭對手無法做到這一點時，我們能夠運送這些收音機是一件很棒的事情，因為一旦這些收音機進入市場，我們就會從競爭對手那裡迅速獲得全新的市場份額，並且這種經常性收入流將永遠持續下去。所以這是一種祝福。一些分銷商表示，我們希望獲得 Napco 收音機的銷量，他們買了很多收音機作為庫存，而且永遠不會用完，因為他們不知道其他人甚麼時候可以買到收音機。所以他們讓每個人都參與其中（聽不清），並且購買了不同尋常的數量。這有點歪曲了它。但廣播業務很強大，而且還會變得更強。憑藉我們的 PRIMA 產品，以及更多的銅必須轉換為無線電的事實，未來非常非常光明。

Got it. So I guess they will be tough comps, you expect tough comps to persist in the first half. Is that fair on the equipment side?

知道了。所以我猜他們將是艱難的比賽，你預計艱難的比賽將在上半場持續下去。這對於裝備來說公平嗎？

I think the radio comp is tough for Q1. I don't think it's tough after that. Q1, I think, was the last of the hard comps for radios. By the same token, locking comp, not tough at all for Q1. So kind of like offsetting each other.

我認為第一季度的無線電比賽很艱難。我不認為之後會很難。我認為，Q1 是收音機硬比賽的最後一個。同樣的道理，鎖定陣容對於第一季度來說一點也不難。有點像互相抵消。

Right. Do you attribute any of this decline in alarm and intrusion to a commercial residential slowdown or was it entirely because of the Verizon sunset?

正確的。您是否將警報和入侵的下降歸因於商業住宅的放緩，還是完全因為 Verizon 的衰落？

I think it was -- I think that some of the distributors reacted to capture the market by having tons of inventory on their end, and satisfy the sunset, the dealer as (inaudible) by the sunset. But as Kevin mentioned, this will work its way through, and we'll keep adding new products which have recurring revenue, complete control panels, other radios for other applications. So that's how we see the business.

我認為是——我認為一些經銷商的反應是通過擁有大量庫存來佔領市場，並滿足日落，經銷商（聽不清）是在日落時。但正如凱文提到的，這將會順利完成，我們將不斷添加具有經常性收入的新產品、完整的控制面板、用於其他應用的其他無線電。這就是我們對業務的看法。

And we have a question from Nick Mattiacci of Craig-Hallum.

我們有一個來自 Craig-Hallum 的 Nick Mattiacci 的問題。

This is Nick on for Chad Bennett. So the door locking revenue is up 25% year-over-year, but not quite a sequentially strong as last year. Can you just talk about how that locking segment performed relative to your expectations and how we should think about growth in that segment for the September quarter?

這是查德·貝內特的尼克。因此，門鎖收入同比增長 25%，但不如去年連續強勁。您能否談談鎖定部門相對於您的預期的表現如何，以及我們應該如何考慮該部門在九月季度的增長？

It performed really well -- it was actually even better than I thought. It's -- this segment has done really well for 3, 4 quarters in a row. It actually -- there's 2 locking pieces to it. We have a Alarm Lock, and we have Marks -- Alarm Lock did just as well as it did in Q3, and Marks did even better in Q4 than it did in Q3. So they both did well. I wouldn't read anything into whether sequentially, it was a little up or a little down, was way more in each of the quarters in Q3 and Q4.

它的表現非常好——實際上比我想像的還要好。這個細分市場連續三、四個季度表現非常好。實際上，它有 2 個鎖定件。我們有 Alarm Lock，我們有 Marks——Alarm Lock 的表現與第三季度一樣好，而 Marks 在第四季度的表現甚至比第三季度更好。所以他們倆都做得很好。我不會解讀第三季度和第四季度每個季度的增幅是小幅上升還是小幅下降。

And than it was in the preceding year's period. And as I said earlier, the Q1 comp is fairly I'll call it fairly easy. So I have very good expectations for the locking in this upcoming quarter as well. The locking business benefits from the school security segment, airport upgrades, hospitals lots of things, but those are the 3 that stand out.

與去年同期相比。正如我之前所說，Q1 的比較相當簡單。因此，我對下一個季度的鎖定也抱有很好的期望。鎖具業務受益於學校安全領域、機場升級、醫院等諸多領域，但其中最突出的是這三個領域。

The school security part is difficult to measure. I always get a how much is it? Tell me how much it is. They buy through distribution, so we don't know. One of the things we mentioned in the release today was the school job at the University of Arizona did. They had a professor that was killed about 9 months ago. They recently put in 700 of our Trilogy electronic locks I didn't really know about it. They bought it through a distributor. The only reason I heard about it was because there was a big news article and a big thing on TV out there.

學校安全部分很難衡量。我總是收到一個多少錢？告訴我多少錢。他們通過分銷購買，所以我們不知道。我們在今天的新聞稿中提到的一件事是亞利桑那大學所做的學校工作。他們有一位教授大約九個月前被殺。他們最近安裝了 700 個我們的 Trilogy 電子鎖，我對此並不了解。他們通過經銷商購買了它。我聽說這件事的唯一原因是因為電視上有一篇大新聞和一件大事。

So a lot of times, we don't go through distribution. Sometimes we know, sometimes we don't. But I know when locking is strong, that is a big part of it. And with all the craziness going on, I believe that's here to stay. That's not going anywhere. So our expectations is for locking to stay strong for various reasons.

所以很多時候，我們不進行分發。有時我們知道，有時我們不知道。但我知道當鎖定很強時，這就是其中的一個重要部分。隨著所有瘋狂的事情不斷發生，我相信這種情況將會持續下去。那不會有任何結果。因此，出於各種原因，我們的期望是鎖定保持強勁。

One thing I'd like to mention is. Kevin talked about the Trilogy lock, -- the Trilogy locks are the standard of the entire locking industry. That's the lock everybody is using. All the key larger jobs you're using the commercial lock, it's being put in everywhere. And more trouble around the U.S. with schools, with people entering office buildings and taking out things because of the fact that there's a lot of people that are not working. They're putting in Trilogy locks and all of our locks, especially the Trilogy locks everywhere. So it bodes well that Trilogy locks should be -- will be selling continuously and we've now expanded the Trilogy lock line where they now work with radio control. They work as stand-alone on the virtual doors.

我想提的一件事是。 Kevin談到了Trilogy鎖，——Trilogy鎖是整個鎖具行業的標準。這是每個人都在使用的鎖。所有重要的大型工作都使用商用鎖，它被放置在任何地方。美國各地的學校出現了更多麻煩，人們進入辦公樓並拿走東西，因為有很多人沒有工作。他們正在安裝 Trilogy 鎖和我們所有的鎖，尤其是到處都是 Trilogy 鎖。因此，Trilogy 鎖應該會持續銷售，這是個好兆頭，我們現在已經擴展了 Trilogy 鎖產品線，它們現在可以與無線電控制一起使用。它們在虛擬門上獨立工作。

And it's a very, very unique line of products. And that's why the distributors are carrying it. And we don't always hear that at the sale. We just see the amount of volume of larger distributors and it's greater, much greater than we see than last.

這是一個非常非常獨特的產品線。這就是經銷商攜帶它的原因。我們在促銷時並不總是聽到這樣的說法。我們只看到較大經銷商的銷量，而且比我們去年看到的要大得多。

And then I think in the release, you talked about an expectation for much improved gross margins this year. I guess the service gross margins are a little less volatile than equipment gross margins, but should we think about that 30% equipment gross margin in Q4 sort of being the baseline or how else should we think about equipment gross margins this year and especially related to the seasonality throughout the year?

然後我認為在新聞稿中，您談到了今年毛利率將大幅提高的預期。我認為服務毛利率的波動性比設備毛利率要小一些，但我們是否應該將第四季度 30% 的設備毛利率視為基準，或者我們還應該如何考慮今年的設備毛利率，特別是與全年的季節性？

Historically, the equipment gross margins used to be in the 30s. And then as the volume picked up, which usually was in our fourth quarter, the June quarter, and the equipment margins would go up into the high 30s, sometimes low 40s. That all went out the window during the supply chain crisis and our need to have to buy component parts at very expensive prices just to keep things moving.

從歷史上看，設備毛利率曾經在30多歲。然後，隨著產量的增加（通常是在我們的第四季度、六月季度），設備利潤率將上升到 30 多美元，有時甚至達到 40 多美元。在供應鏈危機期間，這一切都消失了，我們需要以非常昂貴的價格購買零部件才能保持運轉。

So buying a $50 micro that's normally $5 from a broker just to keep the radios moving knowing that we would get recurring revenue at the end of it. That's why we did it. And hey, as we got rating improved radio sales, big new dealers, big customers, et cetera. But now those expenses are behind us. And not only the cost of the parts, but the airfare, the freight.

因此，從經紀人那裡購買一台 50 美元的微型收音機（通常是 5 美元）只是為了讓收音機繼續運轉，因為我們知道最終我們會獲得經常性收入。這就是我們這樣做的原因。嘿，隨著我們對收音機銷售、大新經銷商、大客戶等的評級有所提高。但現在這些費用已經成為過去。不僅是零件的成本，還有機票、運費。

One of the big things with the supply chain prices was freight super expensive. Whether you're flying or putting it on a boat, the pricing was crazy. A lot of it's come back to Earth. And so we wound up having by our standards poor margins, poor hardware margins for the year. So here we are, we did $110 million of hardware sales in fiscal 2023, with an 18% gross margin, which is well below what it should be and what we say, what it will be.

供應鏈價格的一大問題是運費非常昂貴。無論你是乘坐飛機還是將其放在船上，定價都非常瘋狂。其中很多都回到了地球。因此，按照我們的標準，我們今年的利潤率、硬件利潤率都很低。所以，我們在 2023 財年的硬件銷售額為 1.1 億美元，毛利率為 18%，遠低於應有的水平和我們所說的、將會達到的水平。

So going forward, you saw in the fourth quarter, margins was 30% for hardware. That's more normalized. Now whether we're going to be 30% right out of the gate in Q1, I'd be more conservative about that. I believe we will build ourself up as the quarters go by to being in the 30s, and that will become the more normalized level of margin as it used to be.

因此，展望未來，您會看到第四季度硬件的利潤率為 30%。這更加常態化。現在，無論我們是否會在第一季度達到 30%，我對此會更加保守。我相信，隨著季度進入 30 年代，我們將不斷壯大自己，這將成為像以前一樣更加正常的利潤水平。

And then probably go beyond that as the volume kicks up even higher, the volume kicking up leads to the overhead absorption and margin expansion from manufacturing in the Dominican Republic. That's one of the benefits you get. So standard will be in the 30s. I take a quarter or 2 to get there.

然後可能會超出這個範圍，因為銷量會進一步增加，銷量的增加會導致多米尼加共和國製造業的間接費用吸收和利潤率擴張。這是您獲得的好處之一。所以標準是30多歲。我需要一兩刻鐘才能到達那裡。

And our final question comes from Jim Ricchiuti from Needham & Company.

我們的最後一個問題來自 Needham & Company 的 Jim Ricchiuti。

Kevin, just with respect to the last comment. I get the fact that the increased volume will be will benefit you from -- in terms of greater absorption in the Dominican Republic. But I'm wondering the other way around is with this bit of an air pocket that you're seeing in the lower-end intrusion radios, black radios what about the potential headwind from utilization being not as strong in the Dominican Republic in the next quarter or 2?

凱文，只是關於最後的評論。我知道增加的數量將使您受益——就多米尼加共和國的更大吸收而言。但我想知道相反的是，你在低端入侵無線電、黑色無線電中看到的這一點氣穴，未來多米尼加共和國的使用不那麼強勁，潛在的逆風如何？四分之一還是二？

Well, that could have an effect. But on the other side, the mix will be better. So in Q1, as an example, of last year of fiscal '23, the mix was much more heavily leaned towards the radios than the locking Radios, which we love, that's a lower gross margin item, best case, we don't care so much about the margins.

嗯，這可能會產生影響。但另一方面，混合會更好。因此，以去年 23 財年的第一季度為例，該組合更傾向於收音機，而不是鎖定收音機，我們喜歡後者，這是一個毛利率較低的項目，最好的情況，我們不在乎關於利潤率就這麼多了。

We do care a lot about the recurring revenue, which follows. But for locking and for access control for the other pieces of the business, those are much higher margin items. And so we might lose some overhead absorption if the radios are much lower. I don't think they will. I think only on one type, it might be, but we'll pick up absorption from blocking. We saw it in the fourth quarter. There was overhead absorption pickup in the fourth quarter of this fiscal year that we just finished.

我們確實非常關心接下來的經常性收入。但對於其他業務部分的鎖定和訪問控制來說，這些都是利潤率更高的項目。因此，如果無線電功率低得多，我們可能會失去一些開銷吸收。我認為他們不會。我認為可能只有一種類型，但我們會從阻塞中吸收吸收。我們在第四季度就看到了這一點。我們剛剛結束的本財年第四季度管理費用吸收有所回升。

And that had the lower radios and it had the improved locking and both the mix help and the DR overhead absorption help. So eventually, we're going to get to the point where it's all going and it's all working where the radios are up, the locking is up, it's all up, then we get the best of both worlds.

它具有較低的無線電，並且具有改進的鎖定以及混合幫助和 DR 開銷吸收幫助。所以最終，我們將達到一切順利、一切正常的地步，無線電已啟動，鎖定已啟動，一切都已啟動，然後我們就可以兩全其美。

I'm seeing no further questions, I'll turn the call back over to our host.

我沒有看到任何其他問題，我會將電話轉回給我們的主持人。

This is Richard Soloway. I want to thank everyone for participating in today's conference call. As always, should you have any further questions, please feel free to call Patrick, Kevin or myself for further information. We thank you for your interest and support, and we look forward to speaking with you all again in a few months to discuss NAPCO's fiscal Q1 2024 results. Have a great day, everybody. Bye-bye.

這是理查德·索洛威。我要感謝大家參加今天的電話會議。與往常一樣，如果您有任何其他問題，請隨時致電帕特里克、凱文或我本人以獲取更多信息。我們感謝您的關注和支持，我們期待在幾個月後再次與您交談，討論 NAPCO 2024 年第一季度的財務業績。祝大家有美好的一天。再見。

The meeting has now concluded. Thank you for joining, and have a pleasant day. Goodbye.

會議現已結束。感謝您的加入，祝您度過愉快的一天。再見。