NAPCO Security Technologies Inc (NSSC) 2024 Q1 法說會逐字稿

Welcome to the NAPCO Security Technologies Fiscal Q1 2024 Earnings Call. Our host for today's call is Fran Okoniewski, Vice President of Investor Relations. (Operator Instructions) I would now like to turn the call over to your host, Fran, you may begin.

歡迎參加 NAPCO Security Technologies 2024 年第一季財報電話會議。今天電話會議的主持人是投資者關係副總裁 Fran Okoniewski。 （操作員指示）我現在想將電話轉給您的主持人弗蘭，您可以開始了。

Thank you, Ross, and good morning, everyone. My name is Fran Okoniewski, Vice President of Investor Relations for NAPCO Security Technologies. Thank you all for joining us for today's conference call to discuss our financial results for our fiscal first quarter 2024.

謝謝羅斯，大家早安。我是 Fran Okoniewski，NAPCO Security Technologies 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 2024 年第一財季的財務表現。

By now, all of you should have had the opportunity to review our earnings press release discussing the results of our quarter. If you have not, a copy of the release is available in the Investor Relations section of our website, napcosecurity.com.

到目前為止，你們所有人都應該有機會閱讀我們討論本季業績的收益新聞稿。如果您還沒有，您可以在我們網站的投資者關係部分獲得新聞稿的副本，napcosecurity.com。

On the call today are Richard Soloway, our President and Chief Executive Officer of NAPCO Security Technologies; and Kevin Buchel, our Executive Vice President and Chief Financial Officer. Before we begin, let me take a moment to read the forward-looking statement as 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.

今天參加電話會議的是 NAPCO Security Technologies 總裁兼執行長 Richard Soloway；以及我們的執行副總裁兼財務長 Kevin Buchel。在開始之前，讓我花點時間閱讀前瞻性聲明，因為本簡報包含基於管理層的判斷、信念、當前趨勢和預期產品對未來業績的當前預期估計、預測和預測的前瞻性聲明表現。

These forward-looking statements include, without limitation, statements relating to growth drivers of the company's business, such as school security products, reoccurring 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 Software as a Service, recurring monthly revenue.

這些前瞻性陳述包括但不限於與公司業務成長動力相關的陳述，例如學校安全產品、經常性收入服務、潛在的市場機會、我們的經常性收入產品對客戶和經銷商帶來的好處、我們的控制能力軟體即服務的費用和成本以及預期年運行率、每月經常性收入。

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.

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有重大差異。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）中所述的此類風險因素。

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.

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有重大差異。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、活動水準、績效或成就。

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.

您不應過度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資訊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資訊的義務。

I will turn the call over to Dick in a moment, but before I do, I want to mention that we will be attending the ISC East industry trade show on November 15 and 16 in New York City's Javits Center. If anyone is interested in attending and meeting with us, please contact me, and I will arrange to get you a pass.

我稍後會將電話轉給迪克，但在此之前，我想提一下，我們將參加 11 月 15 日至 16 日在紐約市賈維茨中心舉行的 ISC East 工業貿易展。如果有人有興趣參加並與我們會面，請與我聯繫，我會安排給您通行證。

In addition, we will be attending the 26th Annual Needham Growth Conference in January. We're also planning for some non-deal roadshow activity in the near future. With that out of the way, let me turn the call over to Richard Soloway, President and Chief Executive Officer of NAPCO Security Technologies. Dick, the floor is yours.

此外，我們還將參加 1 月舉行的第 26 屆尼達姆年度成長會議。我們也計劃在不久的將來進行一些非交易路演活動。現在，讓我將電話轉交給 NAPCO Security Technologies 總裁兼執行長 Richard Soloway。迪克，地板是你的了。

Thank you, Fran. Good morning, everyone, and welcome to our conference call. Thank you for joining us today to discuss our results. We are pleased to report our fiscal Q1 2024 record sales of $41.7 million. This is the 12th consecutive quarter we achieved record sales for a quarterly reporting period.

謝謝你，弗蘭。大家早安，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。我們很高興地報告 2024 年第一季的銷售額達到創紀錄的 4,170 萬美元。這是我們連續第 12 季在季度報告期間實現創紀錄的銷售額。

Recurring revenue service continues to grow at a very strong rate and the annual prospective run rate is now $72.5 million based on October 2023 recurring revenues. Our balance sheet remains strong with our cash balances at $74.6 million, up 68% over fiscal Q1 2023 and up 12% sequentially. We have no debt.

經常性收入服務持續以非常強勁的速度成長，根據 2023 年 10 月的經常性收入，年度預期運行率目前為 7,250 萬美元。我們的資產負債表依然強勁，現金餘額為 7,460 萬美元，比 2023 財年第一季成長 68%，比上一季成長 12%。我們沒有債務。

We continue to focus on capitalizing on key industry trends, which include wireless fire and intrusion alarms and the related recurring revenue service 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 our costs.

我們繼續專注於利用關鍵的行業趨勢，其中包括無線火災和入侵警報和相關的經常性收入服務學校安全解決方案，以及企業存取控制系統和建築鎖定產品。 NAPCO 的管理團隊繼續專注於成長、利潤和股本回報率以及控製成本等關鍵指標。

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 Buchel. He will provide an overview of our fiscal first quarter results, and then I'll be back with more on our strategies and view of our markets. Kevin?

這些指標對我們以及我們的股東都很重要。我們繼續執行我們的業務策略，我們的利益與股東保持一致，因為 NAPCO 的高階管理層擁有約 10% 的股權。在詳細介紹之前，我現在將把電話轉給我們的財務長 Kevin Buchel。他將概述我們第一財季的業績，然後我將提供有關我們的策略和市場觀點的更多資訊。凱文？

Thank you, Dick, and good morning, everybody. Net sales for the 3 months ended September 30, 2023, increased by 6% to a fiscal first quarter record of $41.7 million as compared to $39.5 million for the same period last year.

謝謝迪克，大家早安。截至 2023 年 9 月 30 日的三個月淨銷售額成長 6%，達到創紀錄的第一財季 4,170 萬美元，而去年同期為 3,950 萬美元。

Recurring monthly service revenue continued its strong growth, increasing 25% in Q1 to $17.3 million compared to $13.8 million for the same period last year. Our recurring service revenues now have a prospective annual run rate of approximately $72.5 million based on October 2023 recurring service revenues, and that compares to $67 million based on July 2023 recurring service revenues which we reported back in August.

每月經常性服務收入持續強勁成長，第一季成長 25%，達到 1,730 萬美元，去年同期為 1,380 萬美元。根據2023 年10 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約為7250 萬美元，而根據我們8 月份報告的2023 年7 月的經常性服務收入，我們的經常性服務收入為6700 萬美元。

Equipment sales for the quarter decreased 5% to $24.4 million as compared to $25.7 million last year. This decrease was primarily due to the expected softness in radio sales as some distributors work off excess inventory, which was the result of distributors loading 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.

本季設備銷售額下降 5%，至 2,440 萬美元，而去年為 2,570 萬美元。這一下降主要是由於預期無線電銷售疲軟，因為一些分銷商正在處理多餘的庫存，這是因為分銷商在 3G Verizon 日落即將到來時裝載了無線電，他們希望確保在 2019 年更新了 5G 無線電。他們的庫存。

And this was partially offset by increases in both our Alarm Lock and our Marks store locking products, which increased 24% in Q1 versus last year's Q1. We believe the excess radio inventory in the channel 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.

這部分被我們的 Alarm Lock 和 Marks store 鎖定產品的成長所抵消，第一季與去年第一季相比成長了 24%。我們相信通路中過多的收音機庫存只是暫時的情況，我們預計收音機銷售將繼續成為我們硬體銷售的關鍵貢獻者，並導致我們高利潤經常性收入的持續增長。

Gross profit for the 3 months ended September 30, 2023, increased 54% to $22.4 million with a gross margin of 54%, and that compares to $14.6 million with a gross margin of 37% for the same period a year ago. Gross profit for equipment sales for Q1 increased 188% to $6.9 million with a gross margin of 28% and that compares to $2.4 million with a gross margin of 9% last year.

截至2023年9月30日的三個月的毛利成長了54%，達到2,240萬美元，毛利率為54%，而去年同期為1,460萬美元，毛利率為37%。第一季設備銷售毛利成長 188%，達到 690 萬美元，毛利率為 28%，而去年的毛利率為 240 萬美元，毛利率為 9%。

Gross profit for recurring revenues for the first quarter increased 28% to $15.6 million with a 90% gross margin, and that compares to $12.2 million with a gross margin of 88% and for the same period last year. The increase in gross profit dollars and gross margin for equipment sales was primarily the result of more normalized material and freight costs after the cessation of the global supply chain problems as well as the shift in product mix to higher-margin locking products.

第一季經常性營收毛利成長 28%，達到 1,560 萬美元，毛利率為 90%，去年同期為 1,220 萬美元，毛利率為 88%。設備銷售毛利和毛利率的增加主要是由於全球供應鏈問題結束後材料和貨運成本更加正常化以及產品結構轉向利潤率更高的鎖定產品。

The 200 basis point increase in gross margin on service revenues now 90% was primarily due to the continued increase in 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 remained relatively constant at $2.4 million or 6% of sales for both Q1 this year as well as Q1 last year.

服務收入毛利率增加了 200 個基點，目前達到 90%，主要是由於與公司消防無線電相關的服務收入持續增長，該無線電的每月銷售價格高於該公司的入侵無線電。本季的研發成本相對穩定，為 240 萬美元，佔今年第一季和去年第一季銷售額的 6%。

Selling, general and administrative expenses for the quarter were also relatively constant at $8.4 million or 20% of net sales as compared to $8.5 million or 22% of net sales last year. Operating income for the quarter increased 222% to $11.6 million as compared to $3.6 million for the same period last year. The company's provision for income taxes for the 3 months ended September 30, 2023, increased by approximately $1.1 million to $1.5 million with an effective tax rate of 13% as compared to $461,000 with an effective tax rate of 13% for the same period a year ago.

本季的銷售、一般和管理費用也相對穩定在 840 萬美元，佔淨銷售額的 20%，而去年為 850 萬美元，佔淨銷售額的 22%。本季營業收入成長 222%，達到 1,160 萬美元，去年同期為 360 萬美元。截至2023年9月30日止三個月，該公司的所得稅撥備增加約110萬美元至150萬美元，有效稅率為13%，而去年同期的所得稅撥備為461,000美元，有效稅率為13%前。

The increase in the provision for income taxes for the 3 months was primarily due to higher taxable income. Net income for the quarter increased 239% to a Q1 record $10.5 million or $0.28 per diluted share as compared to $3.1 million or $0.08 per diluted share for the same period last year, and it represents 25% of net sales.

這三個月所得稅撥備的增加主要是因為應納稅所得額增加。本季淨利成長239%，達到第一季創紀錄的1,050 萬美元，即稀釋後每股收益0.28 美元，而去年同期為310 萬美元，即稀釋後每股收益0.08 美元，佔淨銷售額的25%。

Adjusted EBITDA for the quarter increased 174% to a Q1 record $12.9 million or $0.35 per diluted share, and that compares to $4.7 million or $0.13 per diluted share for the same period last year and equates to an adjusted EBITDA margin of 31%.

本季調整後EBITDA 成長174%，達到第一季創紀錄的1,290 萬美元，即稀釋後每股0.35 美元，而去年同期為470 萬美元，即稀釋後每股0.13 美元，調整後EBITDA 利潤率為31%。

Moving on to the balance sheet. At September 30, 2023, the company had $74.6 million in cash, cash equivalents and marketable securities, and that compared to $66.7 million at June 30, 2023, and that represents a 12% increase. Working capital is defined as current assets less current liabilities, was $115.9 million at September 30, 2023, and that compares with working capital of $111.7 million at June 30, 2023.

繼續看資產負債表。截至2023年9月30日，該公司擁有7,460萬美元的現金、現金等價物和有價證券，與2023年6月30日的6,670萬美元相比，增加了12%。營運資本定義為流動資產減去流動負債，截至2023年9月30日為1.159億美元，截至2023年6月30日的營運資本為1.117億美元。

And the current ratio, defined as current assets divided by current liabilities with 6.3:1 at September 30, 2023, and was 6.7:1 at June 30, 2023. Cash provided by operating activities for the 3 months ended September 30, 2023, was $11.2 million, and that compared to cash used in operating activities of $2 million for the same period last year.

流動比率定義為流動資產除以流動負債，2023年9月30日為6.3:1，2023年6月30日為6.7:1。截至2023年9月30日止三個月營業活動提供的現金為1,120 萬美元，而去年同期經營活動使用的現金為200 萬美元。

CapEx for the quarter was $256,000 and that compared to $372,000 in the prior period last year. This concludes my formal remarks, and I would now like to return the call back to Dick.

本季的資本支出為 256,000 美元，而去年同期為 372,000 美元。我的正式發言到此結束，現在我想回電給迪克。

Kevin, thank you. As I mentioned, our fiscal 2024 is off to a great start with fiscal Q1 results, achieving record profits driven by hardware enabled recurring revenue growth of 25%, representing 41% of total company revenues.

凱文，謝謝你。正如我所提到的，我們的2024 財年有了一個良好的開端，第一財季的業績在硬體的推動下實現了創紀錄的利潤，使經常性收入增長了25%，占公司總收入的41%。

Total company revenues were up 6% year-over-year and we achieved gross profit growth of 54% to $22.4 million. While our equipment revenue declined by 5%, gross margins on such sales increased to 28%, and our recurring revenue grew by 25% to $17.3 million with an annual run rate of $72.5 million as of October 2023.

公司總營收年增 6%，毛利成長 54%，達到 2,240 萬美元。儘管我們的設備收入下降了5%，但此類銷售的毛利率卻增加至28%，並且我們的經常性收入增長了25%，達到1,730 萬美元，截至2023 年10 月，年運行率為7,250萬美元。

And our locking sales from our Alarm Lock and Marks divisions, which represents 62% of our hardware sales increased 24% in Q1 versus last year's Q1. As we work through channel inventory, we expect equipment revenues to reaccelerate as thousands of 3G radios need to be replaced and we anticipate these will be replaced with NAPCO's newer generation radios because alarm dealers must have new functioning and recurring revenue-producing radios to monitor alarm conditions.

我們的 Alarm Lock 和 Marks 部門的鎖具銷售額占我們硬體銷售額的 62%，第一季與去年第一季相比成長了 24%。當我們研究通路庫存時，我們預計設備收入將重新加速，因為數千個3G 無線電需要更換，並且我們預計這些無線電將被NAPCO 的新一代無線電取代，因為警報經銷商必須擁有新功能和經常性創收無線電來監控警報狀況。

This would result in both additional hardware revenue and increasing recurring revenue for the company. We continue to focus on our previously stated goals of $150 million run rate in recurring revenue and $150 million of equipment revenue on or about the end of fiscal 2026. Achieving these goals as well as our gross margin goals of 80% for recurring revenue, and it was 90% here in Q1 and a 50% goal for equipment would generate EBITDA margins in excess of 45%.

這將為公司帶來額外的硬體收入和經常性收入。我們繼續專注於先前提出的目標，即到2026 財年末或前後實現1.5 億美元的經常性收入運行率和1.5 億美元的設備收入。實現這些目標以及我們的經常性收入80% 的毛利率目標，以及第一季為 90%，設備 50% 的目標將產生超過 45% 的 EBITDA 利潤率。

We are well on our way to achieving this goal as our EBITDA margin in Q1 was 31%. There are thousands of commercial buildings of all types such as offices, hospitals, schools, coffee shops, restaurants, and others that still require upgrades from legacy copper phone lines.

我們正在順利實現這一目標，第一季的 EBITDA 利潤率為 31%。有數千座各種類型的商業建築，如辦公室、醫院、學校、咖啡店、餐廳等，仍需要對傳統銅質電話線進行升級。

Our StarLink line of radios have the widest coverage range of both AT&T and Verizon with rich feature sets, which our dealers love. Margins for recurring revenue improved by 200 basis points to 90% this quarter versus 88% in the same period a year ago. As we have previously stated, the constraints of the supply chain are abating, and we believe in the coming months that combined with new distribution services we have developed, we'll begin to reinvigorate our equipment sales to even higher levels than any time before.

我們的 StarLink 系列收音機擁有 AT&T 和 Verizon 最廣泛的覆蓋範圍，並具有豐富的功能集，深受我們經銷商的喜愛。本季經常性收入利潤率提高了 200 個基點，達到 90%，而去年同期為 88%。正如我們之前所說，供應鏈的限制正在減弱，我們相信在未來幾個月裡，結合我們開發的新分銷服務，我們將開始重振我們的設備銷售，達到比以往更高的水平。

When that happens, we also expect to generate increased hardware gross margins as the higher the level of hardware sales, the more overhead absorption occurs in our Dominican Republic factory and this expands our gross margins. We also announced the hiring of Deloitte & Touche as our new accounting firm. Deloitte has 1 of the largest professional service networks in the world and is known for their renowned reputation expertise and having a strong track record of providing high-quality audit and advisory services to a wide range of clients.

當這種情況發生時，我們也預期硬體毛利率會增加，因為硬體銷售水準越高，我們多明尼加共和國工廠吸收的管理費用就越多，這會擴大我們的毛利率。我們也宣布聘請德勤會計師事務所為我們的新會計師事務所。德勤擁有世界上最大的專業服務網絡之一，以其享有盛譽的專業知識而聞名，並在為廣大客戶提供高品質審計和諮詢服務方面擁有良好的記錄。

At this stage, for NAPCO, it's essential to choose a big 4 firm with industry-specific experience that aligns with our organization and who understands the unique challenges and regulations relevant to our sector. An additional highlight in this quarter was the partnering with 1 of the largest alarm product distributors in the U.S.A. with over 100 branches across the country to service alarm dealers, system integrators and locking professionals and with this new relationship, our distribution network expands to over 300 locations.

在此階段，對於 NAPCO 來說，選擇一家具有特定行業經驗、與我們的組織相符、了解與我們行業相關的獨特挑戰和法規的四大公司至關重要。本季度的另一個亮點是與美國最大的警報產品分銷商之一合作，在全國設有100 多個分支機構，為警報經銷商、系統集成商和鎖具專業人士提供服務，透過這種新的關係，我們的分銷網絡擴展到300 多個地點。

Our R&D team remains hard at work, developing more products for the future, which will help us grow our recurring revenue business. In October 2023, we introduced a new high-volume small business residential burglar fire alarm called Prima, which could generate substantial growth in hardware sales and profits and most importantly, add substantial recurring revenue service to NAPCO.

我們的研發團隊仍在努力工作，為未來開發更多產品，這將有助於我們發展經常性收入業務。 2023 年10 月，我們推出了一款名為Prima 的新型大容量小型企業住宅防盜火災警報器，它可以帶來硬體銷售和利潤的大幅增長，最重要的是，為NAPCO 增加大量經常性收入服務。

Also in the quarter, we have made some strategic investments and personnel adding to the existing talent of our team. These additions in engineering and specialized sales will help us continue to develop more new and exciting products faster and take them to market in new ways so as to get our alarm locking and integrators excited.

同樣在本季度，我們進行了一些策略投資和人員補充，以補充我們團隊的現有人才。這些工程和專業銷售方面的新增工作將幫助我們繼續更快地開發更多令人興奮的新產品，並以新的方式將它們推向市場，從而讓我們的警報鎖定和整合商興奮不已。

Lastly, as indicated in the earnings release, we will be issuing another $0.08 per share dividend and we are proud of this program as the NAPCO team has created such tremendous shareholder value over the years, and this is another way for us to distribute profitable growth to investors. We are off to a great start for fiscal 2024, and we have a pristine balance sheet, no debt and continue to generate strong sales and healthy profits.

最後，正如收益發布中所示，我們將再發放每股0.08 美元的股息，我們對此計劃感到自豪，因為NAPCO 團隊多年來創造瞭如此巨大的股東價值，這是我們分配利潤增長的另一種方式給投資者。我們 2024 財年有了一個良好的開端，我們擁有原始的資產負債表，沒有債務，並繼續產生強勁的銷售和健康的利潤。

We believe we can continue this growth well into the future as we work toward our fiscal 2026 goals and beyond. I'd like to thank everyone for their support and for joining us in this exciting future we have. Our formal remarks are now concluded, and we would like to open the call for the Q&A session. Ross please proceed.

我們相信，隨著我們努力實現 2026 財年及以後的目標，我們可以在未來繼續保持這種成長。我要感謝大家的支持，並感謝大家加入我們，共同迎接我們這個令人興奮的未來。我們的正式演講現​​已結束，我們將開始問答環節。羅斯請繼續。

(Operator Instructions) And our first question comes from Matt Pfau from William Blair.

（操作員說明）我們的第一個問題來自威廉布萊爾的馬特普福。

Nice results. I wanted to just first ask on the accounting restatements that you had. It looked like you've changed the auditor to help address that. Anything else you're doing internally to help address some of those past issues? And how should we think about those impacting your expenses?

不錯的結果。我想先詢問一下你們的會計重述。看起來你已經更換了審計員來幫助解決這個問題。您在內部還做了哪些事情來幫助解決過去的一些問題？我們該如何考慮那些影響您費用的因素？

Thanks, Matt. So we've done a few things. One, our procedures at the end of the quarter is different than it was in the past. We performed price testing on any large items that are in the raw materials. We compare it to what we had. If there's any changes, we adjust it. We do the same thing in October on a test basis and we continue to investigate any changes that might have occurred.

謝謝，馬特。所以我們做了一些事情。第一，我們在季度末的程序與過去不同。我們對原材料中的任何大件物品進行了價格測試。我們將其與我們擁有的進行比較。如果有任何變化，我們會進行調整。我們在十月進行了同樣的測試，並繼續調查可能發生的任何變化。

We didn't see hardly any changes in this past quarter. We didn't expect to see any changes of the supply chain crisis, the chaos that it brought with it is over. And that's really what caused these changes in pricing in the last year. But we still check it, and we are investing in a module that will do a lot of this quicker and in a more automated fashion, and we expect that to be live by Q3.

上個季度我們幾乎沒有看到任何變化。我們沒想到供應鏈危機會發生任何變化，它帶來的混亂已經結束了。這確實是去年價格變動的原因。但我們仍在檢查它，我們正在投資一個模組，該模組將以更自動化的方式更快地完成許多工作，我們預計該模組將在第三季上線。

We are also -- we hired a consulting firm to work with us to get our procedures and policies and internal controls to be perfect, so that we don't have any weaknesses or no deficiencies. They will be working hand in hand with Deloitte. Deloitte will start right after we file our Q1 which will be in the next day or 2.

我們也聘請了一家顧問公司與我們合作，使我們的程序、政策和內部控制變得完善，這樣我們就沒有任何弱點或缺陷。他們將與德勤攜手合作。德勤將在我們提交第一季報告後立即開始工作，該報告將在第二天或第二天進行。

Once that Q is filed, Deloitte becomes our new accountants. They will work hand-in-hand with the consultant. We plan on hiring an internal control auditor on our staff. We plan on hiring two industrial engineers to focus on the material and the labor costings.

一旦提交問題，德勤就成為我們的新會計師。他們將與顧問攜手合作。我們計劃在我們的員工中聘請一名內部控制審計師。我們計劃聘請兩名工業工程師來專注於材料和勞動力成本核算。

Each of these things is in motion. We haven't felt the impact of any of them yet because this is all happening now. So over the next 12 months, we'll start to see the expense impact of this -- my guess is it will cost up to $1 million over the course of the year. So if you measure us from October through the following September, it will probably be $1 million more than what we've seen -- up to $1 million. All well worth it, and we're looking forward to working closely with both Deloitte and our consulting firm.

這些事物中的每一個都在運動。我們還沒有感受到其中任何一個的影響，因為這一切都正在發生。因此，在接下來的 12 個月中，我們將開始看到這筆費用的影響——我的猜測是，全年的費用將高達 100 萬美元。因此，如果你從 10 月到隔年 9 月對我們進行衡量，它可能會比我們所看到的多 100 萬美元，最多 100 萬美元。一切都是值得的，我們期待與德勤和我們的顧問公司密切合作。

Got it. That's helpful. And wanted to follow up on the equipment revenue results. So it sounds like there was some continued weakness in radio sales, but strength in other areas to help offset that. Can you give us an idea of the revenue and performance by segment there so we can better understand what's going on in the equipment business.

知道了。這很有幫助。並想跟進設備收入結果。因此，聽起來收音機銷售持續疲軟，但其他領域的強勁勢頭有助於抵消這一影響。您能否向我們介紹各細分市場的收入和業績，以便我們更了解設備業務的情況。

Right. You'll see this in the Q when it gets filed either later today or in the next couple of days. I'm not sure exactly when it's going to be, but it will be soon. There's a table that's in footnote 2, and it shows the breakout between intrusion and access alarm products, door locking devices and recurring revenue.

正確的。當今天晚些時候或接下來的幾天提交時，您會在問題中看到這一點。我不確定具體什麼時候會發生，但很快就會發生。註腳 2 中有一個表格，它顯示了入侵和存取警報產品、門鎖設備和經常性收入之間的突破。

So in this quarter that we just completed, the intrusion and access alarm products was $9.3 million. Door locking products was $15.1 million and the recurring which you can also see on the income statement was $17.3 million. The intrusion part was down. We expected it to be down.

因此，在我們剛完成的這個季度，入侵和訪問警報產品的銷售額為 930 萬美元。門鎖產品為 1510 萬美元，您也可以在損益表上看到的經常性支出為 1730 萬美元。入侵部分已關閉。我們預計它會下降。

Last year, a year ago at this time, we were in what I call radio mania, where everybody was loading up trying to get their hands on as many radios as they could, given the impending 3G sunset, which was occurring January of 2023, which did happen. A lot of dealers are last-minute guys, but they were scrambling around to load up, and there wasn't a lot of choices either. A lot of our competitors were having trouble delivering.

去年，也就是一年前的這個時候，我們正處於我所說的無線電狂熱之中，考慮到 2023 年 1 月即將到來的 3G 日落，每個人都在努力嘗試盡可能多地購買無線電，這確實發生了。很多經銷商都是最後一刻才行動，但他們都在爭先恐後地裝貨，也沒有太多選擇。我們的許多競爭對手在交付方面都遇到了困難。

You remember going back a year ago, there was -- we were in the midst of supply chain issues. Nobody could get their hands on the micros that are required in these radios. We were able to get our hands on it and we spent the money to get our hands on it. We spent extra money buying these chips from brokers, we did whatever we could to keep things moving. Because we knew how, a, how important it was to get radios in the hands of all the dealers. But also, we know that it leads to recurring revenue.

你還記得一年前，我們正面臨供應鏈問題。沒有人能夠接觸到這些收音機所需的微控制器。我們能夠得到它，我們花了錢得到它。我們花了額外的錢從經紀人那裡購買這些籌碼，我們盡一切努力讓事情繼續下去。因為我們知道將收音機送到所有經銷商是多麼重要。而且，我們知道它會帶來經常性收入。

And we -- as we've talked about before, picked up some new large accounts because we were able to deliver and others couldn't. And some distributors just bought up whatever they can get their hands on. So not a surprise -- now that inventory has to be worked off now that the sunset has come and gone.

正如我們之前談到的，我們獲得了一些新的大客戶，因為我們能夠交付而其他人則不能。一些經銷商只是買下了他們能拿到的所有東西。因此，這並不奇怪——既然日落已經來了又走了，庫存就必須被清理掉。

And we were encouraged. We saw that the sell-through stats for Q1 were better than they were in Q4. We knew they were going to be less than they were a year ago, not a surprise, but we worked very closely with our distributors to help them move this equipment through opening up also a brand new large distributor with over 100 locations is going to help move overall radio inventory that we expect to happen. We've seen signs of that already. So that's encouraging.

我們受到了鼓勵。我們看到第一季的銷售統計數據比第四季更好。我們知道他們的數量將低於一年前，這並不奇怪，但我們與經銷商密切合作，透過開設一家擁有 100 多個地點的全新大型經銷商來幫助他們移動這些設備，這將有所幫助移動我們預計會發生的整體無線電庫存。我們已經看到了這種跡象。所以這是令人鼓舞的。

And from a locking point of view, locking we have 2 companies Alarm Lock and Marks. They've both been doing great for several quarters in a row. It's attributable to infrastructure upgrades at airports, it's attributable to school security, a bunch of school jobs that we're getting can't announce it. A lot of times the schools don't let us, but we see it, we hear about it. We know about it. Hospitals buildings that want to go to a more upgradable locking setup where you don't have to use a key big projects with hotels. It's happening all over.

而從鎖具的角度來看，鎖具我們有2家公司Alarm Lock和Marks。他們連續幾個季度都表現出色。這要歸功於機場基礎設施​​的升級，這要歸功於學校的安全，我們得到的一堆學校工作不能公佈。很多時候學校不讓我們這樣做，但我們看到了，我們聽到了。我們知道這一點。想要採用更可升級的鎖定設定的醫院建築，您不必在飯店中使用關鍵的大型專案。一切都在發生。

We're very encouraged by the strength of the locking business and of course, the locking margins are better than, say, the radio margins. But radio margins might be 20%. Of course, it leads to the recurring. Locking margins mid-30s to over 40%. So that helped the overall gross margin for the quarter.

我們對鎖定業務的實力感到非常鼓舞，當然，鎖定利潤比無線電利潤要好。但廣播的利潤率可能是 20%。當然，這會導致反覆發生。將 30 多歲的利潤率鎖定在 40% 以上。因此，這有助於提高本季的整體毛利率。

Our next question comes from Jim Ricchiuti from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Jim Ricchiuti。

I wanted to get a little bit more color, if we could, on the new distribution source that you're talking about. It sounds like this has the potential to be another important channel for you guys. I wonder if you could elaborate on how quickly that might scale?

如果可以的話，我想對您正在談論的新發行來源進行更多的介紹。聽起來這有可能成為你們的另一個重要管道。我想知道您是否可以詳細說明其擴展速度有多快？

The new distribution source is another distributor, which is the largest in the industry. And it came to us the last ISC show in Las Vegas and said, we would like to be able to market your products. We have a great network throughout the U.S.A. They have 115 branches and train our guys and we will be a great customer for you.

新的分銷來源是另一家分銷商，該分銷商是業內最大的。在拉斯維加斯舉行的最後一次 ISC 展會上，我們收到了訊息，並表示，我們希望能夠推銷你們的產品。我們在美國擁有強大的網路。他們擁有 115 個分店並培訓我們的人員，我們將成為您的優秀客戶。

They have a lot of customers there that are new that we don't have. We have approximately 12,000 dealers all independent business people that run alarm companies and system integration companies. So this new distributor has additional companies that they're going to bring to us to sell our products.

他們在那裡有很多我們沒有的新客戶。我們擁有約 12,000 名經銷商，所有經銷商都是經營警報公司和系統整合公司的獨立商人。因此，這個新經銷商將引入更多公司來向我們銷售我們的產品。

We're very, very unique, the most unique company in the security industry because we manufacture fire alarms, burglar alarms, locking products and access products. There's no 1 manufacturer that has all those segments. So we have a great ability with our sales group to explain to these new customers how we have an integrated solution, and we expect it to add a lot of additional volume to our business.

我們是安防產業中非常非常獨特、最獨特的公司，因為我們生產火災警報器、防盜警報器、鎖定產品和門禁產品。沒有一家製造商擁有所有這些細分市場。因此，我們的銷售團隊有很強的能力向這些新客戶解釋我們如何擁有整合解決方案，並且我們希望它能為我們的業務增加大量額外的銷售量。

So now we have about 300 branches between our independent network, which are fabulous guys that have a great customer base. And this new network, there's going to be lots of Napco company products out there and a lot of our salesmen, as we said, we've added additional salespeople to help sell it and to break in these distributors as to what we make and why it's -- so it has such great advantages over anything on the marketplace. So we're looking for an exciting future with our new distributor.

現在，我們的獨立網路之間擁有大約 300 個分支機構，這些分支機構都非常出色，擁有龐大的客戶群。在這個新網路中，將會有許多 Napco 公司的產品和許多我們的銷售人員，正如我們所說，我們增加了額外的銷售人員來幫助銷售它，並讓這些經銷商了解我們生產什麼以及為什麼它是——所以它比市場上的任何產品都有如此巨大的優勢。因此，我們正在與新經銷商一起尋找令人興奮的未來。

What kind of traction are you seeing? I know it's early days with Prima, I'm wondering if you can give us a sense as to how you see that potentially ramping as you go through the year?

您看到什麼樣的牽引力？我知道 Prima 還處於早期階段，我想知道您是否可以告訴我們您如何看待這一年中潛在的成長？

And I assume the margin profile of this is a little bit lower in terms of -- as we think about recurring revenue and I wonder if you could also talk to whether there might be some cannibalization of your -- perhaps some of your higher-priced offerings.

我認為，就經常性收入而言，這方面的利潤率要低一些，我想知道您是否也可以談談您的產品是否可能會被蠶食——也許是您的一些高價產品供品。

The new Prima is completely different than anything else we have in our line. We've been making products called Gemini. The dealers love it. It's rock solid. It's fire alarms, it's burglar alarms. And now Prima is a different type of product.

新款 Prima 與我們系列中的其他產品完全不同。我們一直在生產名為 Gemini 的產品。經銷商很喜歡它。它堅如磐石。這是火警警報器，也是防盜警報器。現在 Prima 是一種不同類型的產品。

It's a product designed for smaller enterprises, it's totally wireless -- it can go either a small business or residential. It installs in, we like to say 5 minutes because it's a lick-and-stick type of product, but it's very, very reliable, has NAPCO quality to it. NAPCO feature sets in it.

這是一款專為小型企業設計的產品，它是完全無線的——它既可以用於小型企業，也可以用於住宅。我們喜歡說它的安裝時間為 5 分鐘，因為它是一種即插即用型產品，但它非常非常可靠，具有 NAPCO 品質。 NAPCO 功能集在其中。

So you have a 9-inch keypad that could be put in the front door of a store or a home and has additional satellite keypads, has motion detectors, it has electronic doorbell cameras and it has very, very unique features, which make it easy for the dealer that's selling the job to actually install it right after the job is sold or we can leave it to the customer and the customer can install himself if he's handy -- handy type of customer.

所以你有一個 9 英寸的鍵盤，可以放在商店或家的前門，並有額外的衛星鍵盤，有運動探測器，有電子門鈴攝像頭，它有非常非常獨特的功能，這使得它很容易對於銷售工作的經銷商來說，在工作售出後立即實際安裝它，或者我們可以將其留給客戶，客戶可以自己安裝，如果他方便的話——方便的類型的客戶。

It reports to any central station, the dealer is comfortable with that he's been using for his regular Gemini line of equipment. And we get recurring revenue for everyone because it's all added to our NOC. It's enrolled in our NOC, and we get a service fee like we do for any of our products. And the dealer also charges the end-user customer whatever the market will bear for the type of system, the dealer leaves behind.

它向任何中央站報告，經銷商對他一直在常規 Gemini 系列設備中使用的情況感到滿意。我們為每個人都獲得了經常性收入，因為這些收入都添加到了我們的 NOC 中。它已加入我們的 NOC，我們會像我們的任何產品一樣收取服務費。經銷商也向最終用戶客戶收取市場對經銷商留下的系統類型的負擔能力。

So it's a win-win for dealers, and it's a win-win for us. The volume we expect from this is going to be a very, very high volume because there's lots of stores, lots of residences that need this type of product. And it's very, very good for the dealer to utilize this product because this product also eliminates a technical features in it that nothing else in the market has and eliminates truck rolls by the dealer for repairing and adjusting the system because it's all self-adjusting.

所以這對經銷商來說是雙贏，對我們來說也是雙贏。我們預期的銷售量將非常非常高，因為有很多商店、許多住宅需要這種類型的產品。對於經銷商來說，使用該產品非常非常好，因為該產品還消除了市場上其他產品所沒有的技術功能，並且消除了經銷商上門維修和調整系統的情況，因為它都是自我調整的。

If somebody has a WiFi issue, somebody disconnects the WiFi in a resident like kids like to play with the WiFi, the network. Currently, the dealers have to go back to that site and reboot and realign all the equipment. With Prima, it's all automatic. It refines the network and reboots itself on many, many different levels. So the dealer won't have to go back and roll a truck. So that's a great boom for the dealer. Not only does it have all the fancy features and installs quickly, but also we call self-healing if the system is interrupted with people that are changing the WiFi or adjusting the WiFi system.

如果有人遇到 WiFi 問題，有人會斷開居民的 WiFi，就像孩子們喜歡玩 WiFi、網路一樣。目前，經銷商必須返回該網站並重新啟動並重新調整所有設備。有了 Prima，這一切都是自動的。它完善了網路並在許多不同的層面上重新啟動。這樣經銷商就不必再回去拉卡車了。所以這對經銷商來說是一個巨大的繁榮。它不僅具有所有精美的功能並且安裝速度快，而且如果系統因更改 WiFi 或調整 WiFi 系統而中斷，我們稱之為自我修復。

So it has a lot of features to it. So we expect a lot of great things out of it. We started shipping it last month. Typically, it takes 9 months to a year for a product really grip and get volume. This is works very similar to Gemini and other products in the marketplace. So I think the learning curve is going to be quicker.

所以它有很多功能。所以我們期待它能帶來很多偉大的東西。我們上個月開始出貨。通常，產品需要 9 個月到一年的時間才能真正吸引人並獲得銷售。這與 Gemini 和市場上其他產品的工作原理非常相似。所以我認為學習曲線會更快。

Got it. You guys are running into some tougher comps now as we think about the door lock device business. And I wonder what's your line of sight into that business as you look out over the next...

知道了。當我們考慮門鎖設備業務時，你們現在遇到了一些更艱難的競爭。我想知道當您展望未來時，您對這項業務的看法是什麼...

Locking business is a strong business for us and has a lot of tech -- our products have a lot of tech. When the business was started, I wanted the business to be very technical. And we acquired 2 companies, which basically made mechanical things, locks, traditional type mechanical locks like everybody else in the business. But our idea was to add technology to it and radios to it. So it transfers over distance. It's cell phone communications to the locks. It's so many different things that locks that have made locks modern.

鎖具業務對我們來說是一項強大的業務，並且擁有許多技術—我們的產品擁有許多技術。剛開始創業的時候，我希望這個業務技術性很強。我們收購了兩家公司，它們基本上像業內其他公司一樣生產機械產品、鎖、傳統類型的機械鎖。但我們的想法是為其添加技術和無線電。所以它可以遠距離傳輸。這是與鎖的手機通訊。正是有這麼多不同的東西使得鎖變得現代。

So while we still make traditional hardware mechanical locks, we also make a whole line of electronic-oriented which use near-field Z-Wave, cellular because now we're getting locks, we're making locks for the dealers that never got recurring revenue before a whole line of locks where it's installed by the dealer, but they get recurring revenue from the customer and for themselves.

因此，雖然我們仍然生產傳統的硬體機械鎖，但我們也生產全系列電子產品，使用近場Z-Wave、蜂窩技術，因為現在我們正在生產鎖，我們正在為從未重複出現過的經銷商生產鎖。經銷商安裝整套鎖具之前的收入，但他們從客戶和自己那裡獲得經常性收入。

Never been done before in this business. So that's where it is. We bring a lot of technology to the mechanical locking business, and it's really paying off, and we expect it to continue to pay off in the future.

以前在這個行業從來沒有做過。這就是它所在的地方。我們為機械鎖業務帶來了很多技術，它確實得到了回報，我們預計它將在未來繼續獲得回報。

Got it. And final question, I'll jump back in the queue. Kevin, any sense as to where we are in terms of the higher price components that you had in inventory in terms of where we are and burning that off?

知道了。最後一個問題，我會跳回隊列。凱文，你知道我們在庫存中的高價部件處於什麼位置，以及我們在什麼位置並將其燒掉嗎？

We're not buying anything now at the higher pricing. Those days are over. We have to work through some radio inventory because like some of the distributors, we have some extra radio inventory as well.

我們現在不會以更高的價格購買任何東西。那些日子已經結束了。我們必須處理一些無線電庫存，因為像一些分銷商一樣，我們也有一些額外的無線電庫存。

The mixed bag, some of it was priced at higher component costs, some of it at normal component costs. So that's why for this past quarter, you saw a gross margin of 28% on hardware, which was great compared to kind of what it's been. It's going to get better as the year progresses for 2 reasons.

魚龍混雜，有些以較高的組件成本定價，有些以正常的組件成本定價。這就是為什麼在上個季度，您看到硬體毛利率為 28%，與以往相比，這已經相當不錯了。隨著時間的推移，情況會變得更好，原因有兩個。

One, we're going to not have hardly any of the high radio costs in inventory anymore as we go through it. And of course, as the volume picks up and our volumes get stronger as the year progresses, typically, Q2 being better than 1, 3 being better than 2, 4 being better than 3 on the hardware side to get that overhead absorption, the margins expand.

第一，當我們經歷這個過程時，我們將不再有任何高無線電成本的庫存。當然，隨著銷量的增加，我們的銷量隨著時間的推移而變得更強，通常情況下，在硬體方面，第二季度比第一季好，第三季度比第二季度好，第四季度比第三季好，以獲得間接費用吸收，利潤率擴張。

So I'm a conservative guy. I was happy to see 28% as we move into the balance of fiscal 2024. My expectation is that these margins will continue to expand even further.

所以我是一個保守的人。當我們進入 2024 財年的平衡期時，我很高興看到 28%。我的預期是這些利潤率將繼續進一步擴大。

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 curious if you could provide some color on what you saw from distributor sell-through in the September quarter? And then relatedly, Obviously, you continue to kind of go through this inventory digestion period. When do you think that period is over? Is it largely going to be over in this current quarter?

只是好奇您是否可以提供一些關於您在九月季度經銷商銷售情況中看到的情況的信息？與此相關的是，顯然，你會繼續經歷這個庫存消化期。你認為那個時期什麼時候結束？它在本季基本上就會結束嗎？

We have said give it a couple of quarters to work -- so the distributors could work through the inventory. This was the first of the 2. So I think we have another quarter to work it through. We're working through the -- we're working with our distributors to help them lower their inventory levels on the radios, having this new distributor helps a lot. It's going to help the stats a lot. They're going to move it, I think, at much better paces than the couple of guys that have excess.

我們說過給它幾個季度的時間，以便經銷商可以處理庫存。這是兩個中的第一個。所以我認為我們還有另一個季度的時間來解決這個問題。我們正在與我們的經銷商合作，幫助他們降低收音機的庫存水平，擁有這個新經銷商有很大幫助。這對統計有很大幫助。我認為，他們會以比那兩個擁有多餘資源的人快得多的速度來移動它。

We were encouraged in the sell-through stats while the sell-through stats on the intrusion guys showed it was lower, our stats were lower than they were a year ago, which we expected because of the radios. We did see it was better than Q4. So sequentially, it was up. That to me shows starting to move in the right direction.

我們對銷售統計數據感到鼓舞，而入侵者的銷售統計數據顯示它較低，我們的統計數據低於一年前，這是我們預期的，因為無線電。我們確實看到它比第四季度要好。如此依次，就到了。對我來說，這表明我們開始朝著正確的方向前進。

And so we're very encouraged by that. But I would give this -- we said 2 quarters. We just saw 1 another quarter, and we think this second quarter of the 2 will be better than the 1 we just did. And then by Q3, for us, it's more normalized. But whatever it's going to take, we're going to work with the distributors to move it through. We've been through this before. This is no different. We'll put in whatever effort it takes.

所以我們對此感到非常鼓舞。但我想說——我們說的是兩個季度。我們剛剛又看了一個季度的 1，我們認為 2 的第二季會比我們剛剛做的 1 更好。然後到第三季度，對我們來說，它變得更加正常化。但無論採取何種措施，我們都將與發行商合作以推動其順利進行。我們以前經歷過這件事。這沒什麼不同。我們將盡一切努力。

Okay. That's helpful. And then just as a follow-up, I know you guys are limited what you can announce in the school security market. But just curious if you could provide an update what you're seeing in that space.

好的。這很有幫助。作為後續行動，我知道你們在學校安全市場上可以宣布的內容是有限的。但只是好奇您是否可以提供您在該空間中看到的最新資訊。

Yes, I wish we could announce more as I hear about. I don't hear about everyone because sometimes the schools go direct to the distributors and the distributors just sell to the school to school districts.

是的，我希望我們能夠在我聽到的消息後宣布更多。我沒有聽到每個人的情況，因為有時學校直接向經銷商銷售，而經銷商只是向學校銷售給學區。

But I do hear about some, and I'm always begging to be able to announce it. And there's usually a reluctance. They don't. They like to keep things off the radar. Some let us, some don't. But the school business is still a key part of locking. It's 1 of the reasons why the locking sales have grown that infrastructure upgrades in airports, upgrades in hospitals, et cetera, things I mentioned before, they're all key to the locking business, but schools is a part of it.

但我確實聽說了一些，而且我總是懇求能夠宣布它。而且通常都會有不情願的情況。他們不這樣做。他們喜歡讓事情遠離雷達。有些讓我們，有些不讓。但學校業務依然是鎖定的重點部分。機場基礎設施​​升級、醫院升級等是鎖具銷售成長的原因之一，我之前提到過，它們都是鎖具業務的關鍵，但學校也是其中的一部分。

And again, when we could announce it, we will. We are seeing that the schools are no longer waiting to for the kids to be out of school. It used to be that this was somewhat of a seasonal thing. The kids are out of school for the winter break, that's when the jobs would get done or the kids are out of school in the universities, by May, and that's when the jobs will get done -- happening now, we see it all year around schools can't afford to wait. Too much at stake. There's no real seasonality to it.

再說一次，當我們可以宣布它時，我們會的。我們看到學校不再等待孩子放學。過去，這有點季節性。孩子們在寒假期間放學，那時工作就會完成，或者孩子們在大學放學，到五月，那時工作就會完成——現在正在發生，我們全年都會看到這種情況學校週邊等不起。風險太大。它沒有真正的季節性。

And so we're working hard banging on the doors of all the school districts. There's lots of K-12s out there, and there's over 5,000 universities. And even though we've been talking about this for years, so many, many schools, most, I would say, still don't have equipment that would prevent tragedies. So we always -- they ask me what inning are we in, in the school segment, school security segment. And I say it's still early innings despite all the things that have gone on.

因此，我們正在努力敲開所有學區的大門。那裡有很多 K-12 學校，並且有超過 5,000 所大學。儘管我們已經討論這個問題很多年了，但我想說，很多很多學校仍然沒有可以防止悲劇發生的設備。所以我們總是——他們問我我們處於第幾局，在學校部分，學校安全部分。我想說的是，儘管發生了這麼多事情，現在還處於早期階段。

And our next question comes from Raj Sharma from B. Riley Securities.

我們的下一個問題來自 B. Riley Securities 的 Raj Sharma。

Congratulations on the results. The locking device sales are so strong, and they continue to be -- can you -- can you add some color on where that's coming from? And should we expect that to continue for the next -- the rest of the year?

祝賀結果。鎖定裝置的銷售如此強勁，而且它們繼續——你能——你能在它的來源上添加一些色彩嗎？我們是否應該期望這種情況在接下來的一年裡繼續下去？

I see that the locking sales are across the board. Institutions, schools, high-rises, hospitals, airport upgrades, it's everywhere. The Trilogy line, which is our original invention, which has been improved over the years, is the #1 locking product, electronic locking product in the business.

我看到鎖定銷售是全面的。機關、學校、高樓、醫院、機場升級，它無所不在。 Trilogy 系列是我們的原創發明，多年來經過改進，是業界排名第一的鎖具產品、電子鎖具產品。

As I happen to live in Manhattan. I go to Maguary Airport upgraded with Trilogies. Kennedy airport, Trilogies. NYU hospital, Trilogies. Department stores, Trilogies. It's a very, very key product for security in all kinds of buildings. So we would expect this to continue. We also make it different versions. We make remote control wireless Trilogies that generate recurring revenue.

因為我碰巧住在曼哈頓。我去馬瓜裡機場升級了三部曲。甘迺迪機場，三部曲。紐約大學醫院，三部曲。百貨公司，三部曲。對於各種建築物的安全來說，它是非常非常關鍵的產品。所以我們預計這種情況會持續下去。我們也製作了不同的版本。我們製作可產生經常性收入的遠端控制無線三部曲。

We make stand-alone trilogies. We make trilogies for schools. So we have a very, very wide range of applications for this luck. And expect the locking business to keep on growing and getting stronger as we add new models to Trilogy and that's how we see it.

我們製作獨立三部曲。我們為學校製作三部曲。所以我們的運氣有非常非常廣泛的應用。隨著我們在 Trilogy 中添加新型號，預計鎖定業務將繼續成長並變得更加強大，這就是我們的看法。

Great. And then the alarm sales slowdown, we're hearing that, that should reverse in a quarter or 2. So this slowdown is due to dealer inventories, not due to end market demand. Is that the correct way to understand that?

偉大的。然後，我們聽說，銷售放緩的警報應該會在一到兩個季度內逆轉。因此，這種放緩是由於經銷商庫存造成的，而不是由於終端市場需求造成的。這是正確的理解方式嗎？

Very much so, Raj. That's how we see it. Look at as a couple of stats that I pointed out in our prepared remarks, 1 of which was the run rate. The run rate, we're used to the run rate growing is to grow by about $1 million a month or would be up $3 million for a quarter.

非常如此，拉傑。我們就是這樣看的。看看我在準備好的評論中指出的幾個統計數據，其中之一是運行率。運行率，我們已經習慣了運行率的增長，每月增長約 100 萬美元，或一個季度增長 300 萬美元。

That's a recurring revenue...

這就是經常性收入...

Recurring revenue run rate. And what we saw last quarter, it went from $63 million to $67 million, went up by $4 million. That was very encouraging, more than $1 million per month. This quarter, it went from $67 million to $72.5 million, almost $73 million, not quite there, $72.5 million. That's almost a $2 million a month increase.

經常性收入運轉率。我們上個季度看到，它從 6300 萬美元增加到 6700 萬美元，增加了 400 萬美元。這是非常令人鼓舞的，每月超過 100 萬美元。本季度，它從 6,700 萬美元增至 7,250 萬美元，幾乎是 7,300 萬美元，還不是完全達到 7,250 萬美元。這相當於每月增加近 200 萬美元。

That run rate is telling you that there's a lot of radios being activated and those radios that are being activated we're getting paid on them. And those are very good signs. So that's why we believe that, that plus our activation stats, that's why we believe the slowdown that we keep talking about is more of an inventory and distribution issue as opposed to a demand issue.

該運行率告訴您有很多無線電正在被激活，並且我們正在從這些正在激活的無線電中獲得報酬。這些都是非常好的跡象。因此，這就是為什麼我們相信，再加上我們的活化統計數據，這就是為什麼我們認為我們一直在談論的經濟放緩更多的是庫存和分銷問題，而不是需求問題。

Great. So this alarm slowdown then shouldn't impact the recurring revenues down a few quarters down, they should pick it up as you see a pickup in alarm sales?

偉大的。因此，這種警報放緩不應影響經常性收入下降幾個季度，當您看到警報銷售增加時，他們應該會增加收入嗎？

That's what we believe. And remember, the higher the number goes, and it's recurring is 41% of overall sales. Remember, when you've been with us long enough to remember it was a very small percent, now it's 41%. The higher that number goes, the harder it is to keep that increased percentage up, simple math.

這就是我們所相信的。請記住，這個數字越高，它的重複性就佔總銷售額的 41%。請記住，當您在我們這裡待了足夠長的時間後，您會記得這只是一個非常小的百分比，現在是 41%。這個數字越高，保持增加的百分比就越困難，簡單的數學計算。

But we've managed to do a good job keeping it up, but we're also introducing new stuff, new products like Prima to give us more recurring so that we can keep the pace up as we go forward and head to our 2026 goal. In the 2026 gold, we didn't even include Prima. So we're giving ourselves extra ways to get there, Prima being 1 of them and also in our 2026 goal, we used 80% gross margin on the recurring and we were at 90% this quarter. So these are things to keep in mind as we head towards that 2026 time frame.

但我們已經成功地保持了這一勢頭，而且我們還推出了新東西、像Prima 這樣的新產品，讓我們有更多的重複性，這樣我們就可以在前進的過程中保持步伐，實現2026 年的目標。在2026年的金牌中，我們甚至沒有包括Prima。因此，我們為自己提供了額外的方法來實現這一目標，Prima 就是其中之一，而且在我們 2026 年的目標中，我們的經常性毛利率為 80%，本季為 90%。因此，在我們邁向 2026 年的時間框架時，需要牢記這些事情。

(Operator Instructions) At this time, there appears to be no further questions. I'd like to turn the call back over to Mr. Soloway for closing remarks.

（操作員指示） 此時，似乎沒有進一步的問題。我想將電話轉回給索洛韋先生做總發言。

Thank you, everyone, for participating in today's conference call. As always, should you have any further questions, Feel free to call Fran, Kevin or myself for further information.

感謝大家參加今天的電話會議。一如既往，如果您有任何其他問題，請隨時致電 Fran、Kevin 或我本人以獲取更多資訊。

We thank you for your interest and support, and we look forward to speaking to you all again in a few months to discuss NAPCO's fiscal Q2 results. Bye-bye, and have a wonderful day.

我們感謝您的關注和支持，我們期待在幾個月後再次與大家交談，討論 NAPCO 第二季度財務業績。再見，祝你有美好的一天。

This concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。