NAPCO Security Technologies Inc (NSSC) 2024 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the NAPCO Security Technologies fiscal Q4 and fiscal 2024 earnings conference call. (Operator Instructions) This call is being recorded on Monday, August 26, 2024.

早安，女士們、先生們，歡迎參加 NAPCO Security Technologies 第四季和 2024 財年財報電話會議。（操作員說明）此通話錄音時間為 2024 年 8 月 26 日星期一。

I would now like to turn the conference over to Francis Okoniewski, VP, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係副總裁 Francis Okoniewski。請繼續。

Thank you, Joan, and good morning, everyone. This is Francis Okoniewski, Vice President of Investor Relations for NAPCO Security Technologies. Thank you all for joining today's conference call to discuss financial results for our fiscal fourth quarter and fiscal year 2024.

謝謝你，瓊，大家早安。我是 NAPCO Security Technologies 投資者關係副總裁 Francis Okoniewski。感謝大家參加今天的電話會議，討論我們第四財季和 2024 財年的財務表現。

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

到目前為止，你們所有人都應該有機會閱讀我們的收益新聞稿，討論我們的季度業績。如果您還沒有，可以在我們網站 www.napcosecurity.com 的投資者關係部分取得新聞稿的副本。

On the call today are Dick Soloway, Chairman, CEO of NAPCO Security Technologies; and Kevin Buchel, President, Chief Operating Officer, and Chief Financial Officer.

今天參加電話會議的有 NAPCO Security Technologies 董事長兼執行長 Dick Soloway；凱文‧布切爾 (Kevin Buchel)，總裁、營運長兼財務長。

Before we begin, let me take a moment to read the forward-looking statements 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.

在我們開始之前，讓我花點時間閱讀前瞻性陳述，因為本簡報包含基於管理層的判斷、信念、當前趨勢的當前預期、估計、預測和對未來業績的預測的前瞻性陳述，以及預期的產品性能。

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 our 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、我們的控制能力費用和成本，以及我們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 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.

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。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。

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. You should not place undue reliance on these forward-looking statements.

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。您不應過度依賴這些前瞻性陳述。

All information provided in today's press release and this conference call are as of today's date unless otherwise stated, and we undertake no duty to update such information except as required under applicable law. I'll turn the call over to Dick in a moment.

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天的信息，除非適用法律要求，否則我們不承擔更新此類資訊的義務。我一會兒就把電話轉給迪克。

But before I do, I want to mention, we're actively planning our Investor Relations calendar for non-deal roadshow and conference attendance in the near future. Investor outreach is very important to NAPCO, and I'd like to thank all those folks who assist us in these types of events.

但在此之前，我想提一下，我們正在積極規劃投資者關係日曆，以便在不久的將來進行非交易路演和會議出席。投資者宣傳對 NAPCO 非常重要，我要感謝所有在此類活動中為我們提供幫助的人。

In the coming weeks, we will be attending the Lake Street Best Ideas Conference in New York City on September 12, and the D.A. Davidson 23rd Annual Diversified Industrials and Services Conference in Nashville, Tennessee on September 18 and 19. We will also be participating in a number of non-deal road shows with firms such as Mizuho, Stephens, JPMorgan, Wells Fargo, TD Cowen, Morgan Stanley, KeyBanc and Bank of America.

在接下來的幾週內，我們將參加 9 月 12 日在紐約市舉行的湖街最佳創意會議，並且 D.A.戴維森第 23 屆年度多元化工業和服務會議於 9 月 18 日至 19 日在田納西州納許維爾舉行。我們還將與 Mizuho、Stephens、JPMorgan、Wells Fargo、TD Cowen、Morgan Stanley、KeyBanc 和 Bank of America 等公司一起參加一些非交易路演。

With that out of the way, let me turn the call over to Dick Soloway, Chairman and CEO of NAPCO Security Technologies. Dick, the floor is yours.

現在，讓我將電話轉給 NAPCO Security Technologies 董事長兼執行長 Dick Soloway。迪克，地板是你的了。

Thank you, Francis. Good morning, everyone, and welcome to our conference call. We appreciate your participation today, and we review our fiscal Q4 and fiscal 2024 performance. We are thrilled to announce record sales of $50.3 million for this quarter, making our 15th consecutive quarter of achieving record quarterly sales.

謝謝你，法蘭西斯。大家早安，歡迎參加我們的電話會議。感謝您今天的參與，我們將回顧第四季和 2024 財年的表現。我們很高興地宣布本季銷售額達到創紀錄的 5,030 萬美元，這也是我們連續第 15 季實現創紀錄的季度銷售額。

Our recurring revenue subscription service continues to exhibit robust growth, increasing 27% in Q4 and now has an annual perspective, run rate of $84 million based on July 2024 recurring revenues. Our balance sheet remains strong with cash balances reaching $97.7 million, a 46% increase over the level recorded on June 30, 2023.

我們的經常性收入訂閱服務持續呈現強勁成長，第四季度成長了 27%，根據 2024 年 7 月的經常性收入，目前的年度預期運作率為 8,400 萬美元。我們的資產負債表依然強勁，現金餘額達到 9,770 萬美元，比 2023 年 6 月 30 日記錄的水準增加 46%。

We have no debt. Our strategic focus continues to capitalize on key industry trends, including wireless fire and intrusion alarms, driving recurring service revenues, school security solutions, enterprise access control systems, and architectural locking products.

我們沒有債務。我們的策略重點繼續利用關鍵的行業趨勢，包括無線火災和入侵警報、推動經常性服務收入、學校安全解決方案、企業門禁系統和建築鎖定產品。

At NAPCO, our management team remains committed to prioritizing growth, profitability and returns on equity while effectively managing costs. These metrics are critical to us and our shareholders, reflecting our dedication to executing our business strategy and aligning our interest with those of our shareholders.

在 NAPCO，我們的管理團隊始終致力於優先考慮成長、獲利能力和股本回報率，同時有效管理成本。這些指標對我們和我們的股東至關重要，反映了我們致力於執行我們的業務策略並使我們的利益與股東的利益保持一致。

Now I'd like to hand the call over to our President, Chief Operating Officer and Chief Financial Officer, Kevin Buchel, will provide an overview of our fiscal fourth quarter and fiscal 2024 results. Following Kevin's remarks, I will return to dug deeper into our strategies and market outlook. Kevin?

現在我想將電話轉交給我們的總裁、營運長兼財務長 Kevin Buchel，他將概述我們第四財季和 2024 財年的表現。在凱文的演講之後，我將回來更深入地探討我們的策略和市場前景。凱文？

Thank you, Dick. Good morning, everybody. Net sales for the three months ended June 30, 2024, increased 13% and to a quarterly record $50.3 million, and that compares to $44.6 million for the same period a year ago, and net sales for the 12 months ended June 30, 2024, increased 11% to a record $188.8 million as compared to $170 million for the same period a year ago.

謝謝你，迪克。大家早安。截至 2024 年 6 月 30 日的三個月淨銷售額增長 13%，達到季度創紀錄的 5,030 萬美元，而去年同期為 4,460 萬美元，截至 2024 年 6 月 30 日的 12 個月淨銷售額與去年同期的1.7 億美元相比，成長了11%，達到創紀錄的1.888 億美元。

Recurring monthly service revenue continued its strong growth, increasing 27% in Q4 to $20.3 million as compared to $16.1 million for the same period last year. Recurring monthly service revenues for the 12 months ended June 30, 2024, increased 26% to $75.7 million as compared to $59.9 million last year. These increases are due to the continued strength of our line of StarLink radios.

每月經常性服務收入持續強勁成長，第四季成長 27%，達到 2,030 萬美元，而去年同期為 1,610 萬美元。截至 2024 年 6 月 30 日的 12 個月，每月經常性服務收入比去年的 5,990 萬美元增長了 26%，達到 7,570 萬美元。這些成長歸功於我們 StarLink 無線電系列的持續強勁。

Equipment sales for the quarter increased 5% to $29.9 million as compared to $28.6 million last year. Equipment sales for the year ended June 30, 2024, increased 3% to $113 million as compared to $110 million for the same period last year. These increases were primarily due to revenue increases in the Alarm Lock and Marks brands door locking products, as partially offset by a decrease in intrusion and access along products.

本季設備銷售額成長 5%，達到 2,990 萬美元，去年為 2,860 萬美元。截至 2024 年 6 月 30 日的年度設備銷售額成長 3%，達到 1.13 億美元，去年同期為 1.1 億美元。這些成長主要是由於 Alarm Lock 和 Marks 品牌門鎖產品的收入成長，但部分被產品入侵和存取的減少所抵消。

Locking sales grew 21% and 18%, respectively, as compared to Q4 and the 12 months ended June 30, 2023. Radio sales for the quarter were down 10% as compared to Q4 of last year due to the continued effect of the sun setting of 3G technology as well as the inventory levels of radios at that time at some of our distributors.

與第四季和截至 2023 年 6 月 30 日的 12 個月相比，鎖定銷售額分別成長了 21% 和 18%。由於3G技術日漸衰落的持續影響以及我們一些經銷商當時的收音機庫存水平，本季度的收音機銷量比去年第四季度下降了10%。

Radio sales represent 59% of intrusion and access alarm product sales, and we expect inventory levels in distribution, which have decreased significantly over the past few quarters to continue to reduce, and that will lead to increased radio sales. As such, 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 service revenues.

無線電銷售佔入侵和門禁警報產品銷售的 59%，我們預計過去幾季大幅下降的分銷庫存水準將繼續減少，這將導致無線電銷售增加。因此，我們預計收音機銷售將繼續成為我們硬體銷售的主要貢獻者，並導致我們高利潤的經常性服務收入的持續成長。

Gross profit for the three months ended June 30, 2024, increased 21% to $27.8 million, with a gross margin of 55% as compared to $23 million with a gross margin of 52% for the same period last year. And gross profit for the 12 months ended June 30, 2024, increased by 39% to $101.8 million with a gross margin of 54% and that compared to $73.2 million with a gross margin of 43% a year ago.

截至2024年6月30日止三個月的毛利成長21%至2,780萬美元，毛利率為55%，而去年同期為2,300萬美元，毛利率為52%。截至 2024 年 6 月 30 日的 12 個月，毛利成長 39%，達到 1.018 億美元，毛利率為 54%，而一年前為 7,320 萬美元，毛利率為 43%。

Gross profit for recurring service revenue for the quarter increased 29% to $18.4 million with a gross margin of 90% as compared to $14.3 million with a gross margin of 89% last year. Gross profit for recurring service revenues for the 12 months ended June 30, 2024, increased 28% to $68.5 million with a gross margin of 90% as compared to $53.4 million with a gross margin of 89% last year.

本季經常性服務收入的毛利成長了 29%，達到 1,840 萬美元，毛利率為 90%，而去年的毛利率為 1,430 萬美元，毛利率為 89%。截至2024 年6 月30 日的12 個月，經常性服務收入的毛利成長了28%，達到6,850 萬美元，毛利率為90%，而去年的毛利率為5,340 萬美元，毛利率為89% 。

Gross profit for equipment revenues in Q4 increased by 8% to $9.4 million, with a gross margin of 31% as compared to $8.7 million with a gross margin of 30% last year. Gross profit for equipment revenues for the 12 months ended June 30, 2024, increased by 67% to $33.2 million with a gross margin of 29% as compared to $19.9 million with a gross margin of 18% for the same period last year.

第四季設備收入毛利成長 8%，達到 940 萬美元，毛利率為 31%，而去年的毛利率為 870 萬美元，毛利率為 30%。截至 2024 年 6 月 30 日的 12 個月，設備收入毛利成長 67%，達到 3,320 萬美元，毛利率為 29%，而去年同期為 1,990 萬美元，毛利率為 18%。

The increase in both gross profit dollars and gross margin for recurring revenue for the three and the 12 months ended June 30, 2024, was primarily the result of the previously mentioned increase in recurring revenues as well as a greater proportion of those revenues, being generated by our StarLink Fire radios, which generate higher monthly service charges than the other StarLink radios.

截至2024 年6 月30 日的三個月和12 個月，經常性收入的毛利和毛利率均有所增加，主要是由於前面提到的經常性收入的增加以及這些收入中所產生的比例更大通過我們的 StarLink Fire 無線電，該無線電產生的每月服務費比其他 StarLink 無線電更高。

The increase in both gross profit and gross margin for equipment revenues, for both the three and 12 months ended June 30, 2024, primarily resulted from the aforementioned increase in equipment revenues as well as a favorable shift in product mix for locking products, which typically have a higher gross margin than intrusion products.

截至2024年6月30日止的三個月和十二個月，設備收入的毛利和毛利率均有所增長，主要是由於上述設備收入的增長以及鎖定產品的產品結構的有利轉變，這通常是由於比入侵產品具有更高的毛利率。

Another factor in the increased profit and gross margin for equipment revenue is increased overhead absorption from our Dominican Republic manufacturing facility, as well as the stabilization of component costs from the effects of the global supply chain crisis.

設備收入利潤和毛利率增加的另一個因素是我們多明尼加共和國製造工廠的間接費用吸收增加，以及全球供應鏈危機影響下零件成本的穩定。

Research and development costs for the quarter increased 28% to $3 million or 6% of sales, and that compares to $2.4 million or 5% of sales for the same period a year ago. Research and development costs for the 12 months ended June 30, 2024, increased 15% to $10.8 million or 6% of sales as compared to $9.3 million or 5% of sales for the same period a year ago. The increase for the three and the 12 months primarily resulted from salary increases and additional staff.

本季的研發成本增加了 28%，達到 300 萬美元，佔銷售額的 6%，而去年同期為 240 萬美元，佔銷售額的 5%。截至 2024 年 6 月 30 日的 12 個月，研發成本增加了 15%，達到 1,080 萬美元，佔銷售額的 6%，而去年同期為 930 萬美元，佔銷售額的 5%。三個月和十二個月的成長主要是由於薪資上漲和人員增加所致。

Selling, general and administrative expenses for the quarter increased 22% to $10.9 million or 22% of net sales and that compares to $8.9 million or 20% of net sales for the same period last year. Selling, general and administrative expenses for the 12 months ended June 30, 2024, increased 11% to $37.1 million or 20% of net sales and that compares to $33.6 million or 20% of net sales for the same period last year.

本季的銷售、一般和管理費用成長了 22%，達到 1,090 萬美元，佔淨銷售額的 22%，而去年同期為 890 萬美元，佔淨銷售額的 20%。截至2024 年6 月30 日的12 個月，銷售、一般及管理費用增加了11%，達到3,710 萬美元，佔淨銷售額的20%，而去年同期為3,360 萬美元，佔淨銷售額的20 %。

The increases in SG&A for the three months was primarily due to increases in trade show expenses as the ISC West show occurred in Q4 this year versus Q3 last year. In addition, increased stock-based compensation expenses and increased legal and accounting expenses relating to the enhancing of our internal control systems also contributed to the increase. The increase for the 12 months was primarily due to the aforementioned items with the exception of trade show expenses, which were fairly constant during fiscal 2024 versus fiscal 2023.

這三個月的銷售管理費用增加主要是因為貿易展覽費用增加，因為與去年第三季相比，ISC West 展會今年第四季舉行。此外，股票獎勵費用的增加以及與加強內部控制系統相關的法律和會計費用的增加也導致了這一增長。這 12 個月的成長主要是由於上述項目（貿易展覽費用除外），該費用在 2024 財年與 2023 財年相當穩定。

Operating income for the quarter increased 18% to $14 million as compared to $11.8 million for the same period last year. And operating income for the 12 months ended June 30, 2024, increased 77% to $53.8 million as compared to $30.3 million for the same period last year.

本季營業收入成長 18%，達到 1,400 萬美元，而去年同期為 1,180 萬美元。截至 2024 年 6 月 30 日的 12 個月營業收入成長 77%，達到 5,380 萬美元，而去年同期為 3,030 萬美元。

Interest and other income for the three months increased 99% to $762,000 and that compared to $382,000 last year. And for the 12 months ended June 30, 2024, interest and other income increased by 184% to $2.6 million compared to $903,000 last year. The increases for both the three and the 12 months ended June 30, 2024, was primarily due to increased interest and dividend income from the company's cash and short-term investments.

這三個月的利息和其他收入增加了 99%，達到 762,000 美元，而去年為 382,​​000 美元。截至 2024 年 6 月 30 日的 12 個月，利息和其他收入增長了 184%，達到 260 萬美元，而去年為 903,000 美元。截至2024年6月30日的三個月和十二個月的成長主要是由於公司現金和短期投資的利息和股息收入增加。

The provision for income taxes for the three months decreased by 27% or $434,000 to $1.2 million, with an effective tax rate of 8%, as compared to $1.6 million with an effective tax rate of 13% last year. For the 12 months ended June 30, 2024, the provision for income taxes increased by 60% or $2.5 million to $6.6 million with an effective tax rate of 12%, and that compares to $4.1 million with an effective tax rate of 13% last year.

這三個月的所得稅撥備減少了 27%，即 434,000 美元，降至 120 萬美元，有效稅率為 8%，而去年為 160 萬美元，有效稅率為 13%。截至 2024 年 6 月 30 日的 12 個月，所得稅撥備增加了 60%，即 250 萬美元，達到 660 萬美元，有效稅率為 12%，而去年為 410 萬美元，有效稅率為 13% 。

The decrease in the provision for the three months is due to NAPCO accruing at a higher rate through Q3 and the increase for the 12 months ended June 30, 2024, was due to increases in taxable income. The decrease in the company's effective tax rate for fiscal 2024 was the result of a larger portion of our taxable income being attributable to foreign operations.

這三個月撥備的減少是由於 NAPCO 在第三季以較高的利率計提，而截至 2024 年 6 月 30 日的 12 個月撥備的增加是由於應納稅收入的增加。公司 2024 財政年度的有效稅率下降是因為我們的應稅收入中有很大一部分來自海外業務。

Net income for the quarter increased 28% to a quarterly record $13.5 million or $0.36 per diluted share as compared to $10.6 million or $0.28 per diluted share for the same period last year, and that represents 27% of net sales. Net income for the 12 months ended June 30, 2024, increased 84% to a 12-month record of $49.8 million or $1.34 per diluted share, and that compares to $27.1 million or $0.73 per diluted share for the same period last year and represents 26% of net sales.

本季淨利成長 28%，達到季度創紀錄的 1,350 萬美元，即稀釋後每股 0.36 美元，而去年同期為 1,060 萬美元，即稀釋後每股 0.28 美元，佔淨銷售額的 27%。截至2024 年6 月30 日的12 個月淨利成長84%，達到4,980 萬美元或稀釋每股1.34 美元，創12 個月新高，去年同期為2,710 萬美元，或稀釋每股0.73 美元，代表26佔淨銷售額的百分比。

Adjusted EBITDA for the quarter increased 18% to $15.4 million or $0.41 per diluted share as compared to $13 million or $0.35 per diluted share for the same period a year ago. And that equates to an adjusted EBITDA margin of 31%. Adjusted EBITDA for the 12 months ended June 30, 2024, increased 72% to a 12-month record $58.9 million or $1.59 per diluted share and that compares to $34.3 million or $0.93 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 18%，達到 1,540 萬美元，即稀釋後每股 0.41 美元，而去年同期為 1,300 萬美元，即稀釋後每股 0.35 美元。這相當於調整後 EBITDA 利潤率為 31%。截至2024 年6 月30 日的12 個月，調整後EBITDA 成長72%，達到12 個月創紀錄的5,890 萬美元，即稀釋後每股1.59 美元，而去年同期為3,430 萬美元，即稀釋後每股0.93 美元，相當於調整後的EBITDA。

Moving on to the balance sheet. As of June 30, 2024, the company had $97.7 million in cash and cash equivalents, other investments and marketable securities, and that compares to $66.7 million as of June 30, 2023, and that's a 46% increase. The company has no debt.

繼續看資產負債表。截至2024 年6 月30 日，該公司擁有9,770 萬美元的現金和現金等價物、其他投資和有價證券，而截至2023 年6 月30 日，該公司的現金和現金等價物、其他投資和有價證券為6,670 萬美元，成長了46%。公司沒有負債。

Cash provided by operating activities for the 12 months ended June 30, 2024, was $45.4 million, and that compared to $24.7 million for the same period last year, and that's an 84% increase. Working capital, as defined as current assets less current liabilities, was $146.5 million on June 30, 2024, and that compared with working capital of $111.7 million at June 30, 2023.

截至 2024 年 6 月 30 日的 12 個月，經營活動提供的現金為 4,540 萬美元，與去年同期的 2,470 萬美元相比，成長了 84%。2024年6月30日的營運資本（定義為流動資產減去流動負債）為1.465億美元，而2023年6月30日的營運資本為1.117億美元。

Current ratio, defined as current assets divided by current liabilities, was 7.6:1 at June 30, 2024, and 6.7:1 at June 30, 2023. And CapEx for the quarter was $551,000, and that compared to $415,000 in the prior year period. And for the full fiscal year, CapEx was $1.6 million, and that compared to $3 million last year.

流動比率（定義為流動資產除以流動負債）於2024年6月30日為7.6:1，於2023年6月30日為6.7:1。本季的資本支出為 551,000 美元，而去年同期為 415,000 美元。整個財年的資本支出為 160 萬美元，而去年為 300 萬美元。

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，現在我想回電給迪克。

Thank you, Kevin. Fiscal 2024 concluded with record revenue and net income for both the fourth quarter and the full fiscal 2024 year ending June 30, 2024.

謝謝你，凱文。2024 財年第四季和截至 2024 年 6 月 30 日的整個 2024 財年的營收和淨利均創歷史新高。

The fourth quarter sales of $50.3 million was the 15th consecutive quarter of record sales for a quarterly reporting period. Our record quarterly net income of $13.5 million represents 27% of sales. Adjusted EBITDA was $15.4 million for Q4 and $58.9 million for the full fiscal year and equates to a 31% EBITDA margin.

第四季銷售額為 5,030 萬美元，連續第 15 季創下季度報告期銷售額記錄。我們創紀錄的季度淨利潤為 1,350 萬美元，佔銷售額的 27%。第四季調整後 EBITDA 為 1,540 萬美元，整個財年調整後 EBITDA 為 5,890 萬美元，相當於 31% 的 EBITDA 利潤率。

Equipment revenue grew at 5% for the quarter with gross margins on such sales sequentially increasing to 31% as compared to 29% in each of the last two quarters. Recurring service revenues, which increased 27% in Q4 is a major contributor to the year-over-year overall sales and earnings growth and represents 40% of total revenue.

本季設備營收成長 5%，此類銷售的毛利率連續成長至 31%，而過去兩季每季的毛利率均為 29%。經常性服務收入在第四季度增長了 27%，是整體銷售和盈利同比增長的主要貢獻者，佔總收入的 40%。

Gross margin for recurring service revenues remained strong at 90%. Our balance sheet continues to get stronger with cash and cash equivalents and other investments and marketable securities, increasing 46% to $97.7 million. We have no debt and the net cash provided by operating activities was also very strong, growing 84% over last year.

經常性服務收入的毛利率維持在 90% 的強勁水準。我們的資產負債表繼續增強，現金和現金等價物以及其他投資和有價證券增加了 46%，達到 9,770 萬美元。我們沒有債務，經營活動提供的淨現金也非常強勁，比去年成長了84%。

Our Alarm market marks locking hardware lines continue to see growth in school and classroom security, health care and retail loss prevention as well as in multifamily commercial and residential applications. We continue to remain focused on further penetrating each of these markets.

我們的警報市場標誌著鎖定硬體系列在學校和教室安全、醫療保健和零售防損以及多戶商業和住宅應用中持續成長。我們將繼續專注於進一步滲透這些市場。

Our StarLink line of radios have the widest coverage range of both Verizon and AT&T with rich feature sets, which our dealers love. We continue to enhance these rich feature sets, which makes the product easy to install, work on all fire and burglar panels, ours as well as our competitors.

我們的 StarLink 系列收音機擁有最廣泛的 Verizon 和 AT&T 覆蓋範圍，並具有豐富的功能集，深受我們經銷商的喜愛。我們不斷增強這些豐富的功能集，使產品易於安裝，適用於我們以及競爭對手的所有防火和防盜面板。

No other company can say that. And unlike a lot of our competition is approved by Underwriters Laboratory, the gold standard of the security industry. There are millions of commercial buildings of all types such as offices, hospitals, schools, coffee shops, restaurants, as well as residences that still require upgrades from legacy copper phone lines.

沒有其他公司可以這麼說。與我們的許多競爭對手不同的是，我們的競爭對手得到了保險商實驗室的批准，這是安全行業的黃金標準。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、餐廳以及住宅，仍然需要對傳統銅質電話線進行升級。

We are well positioned to see continued strong growth with our StarLink line of radios. Our recent introduction of Prima by NAPCO, a new All-in-One Panel for Security, Fire, Video and Connected Home with a five-minute installation, remains a very important focus for the company. Our goal is to Prima to address an important mass segment of the security market, including residential and small business.

我們處於有利位置，可以看到我們的 StarLink 無線電產品線持續強勁成長。我們最近推出的 Prima by NAPCO 是一款用於安全、消防、視訊和互聯家庭的新型一體式面板，安裝僅需五分鐘，仍然是公司非常重要的關注點。我們的目標是 Prima 解決安全市場的重要大眾部分，包括住宅和小型企業。

With its built-in Wi-Fi and cellular/radio indications, customer alert notifications and video and smart home subscription options for each installed system, the security dealer as well as NAPCO can add more recurring service revenue generating accounts.

憑藉每個已安裝系統的內建 Wi-Fi 和蜂窩/無線電指示、客戶警報通知以及視訊和智慧家庭訂閱選項，安全經銷商和 NAPCO 可以添加更多經常性服務創收帳戶。

Fiscal 2024 was an amazing record-breaking year where we generated a net income of $49.8 million, adjusted EBITDA of $58.9 million and an adjusted EBITDA margin of 31%. But as I've said before, there is more work to be done. While we continue to be encouraged with the gross margin for hardware sales of 31.4%, we believe this should improve further in fiscal 2025 and beyond.

2024 財年是令人驚嘆的破紀錄的一年，我們的淨利潤為 4980 萬美元，調整後 EBITDA 為 5890 萬美元，調整後 EBITDA 利潤率為 31%。但正如我之前所說，還有更多工作要做。雖然我們繼續對硬體銷售毛利率 31.4% 感到鼓舞，但我們相信這一情況在 2025 財年及以後應該會進一步改善。

Our strong net income, adjusted EBITDA and growing cash indicate the financial strength of our business. As such, we are pleased to continue our dividend program and we'll be increasing the dividend -- quarterly dividend to $0.125 per share, a 25% increase over the $0.10, we paid last quarter. This will be payable on October 3, 2024, to shareholders of record on September 12, 2024.

我們強勁的淨利潤、調整後的 EBITDA 和不斷增長的現金表明我們業務的財務實力。因此，我們很高興繼續我們的股息計劃，並將增加股息——季度股息至每股 0.125 美元，比上季度支付的 0.10 美元增加 25%。該款項將於2024年10月3日支付給2024年9月12日登記在冊的股東。

As always, we will strive to accomplish our goal of the continued financial strength, product innovation, technical superiority and strong profitability for fiscal 2025 and beyond. And we believe we can continue this growth well into the future as we work towards our fiscal 2026 goals.

我們將一如既往地努力實現 2025 財年及以後持續的財務實力、產品創新、技術優勢和強勁盈利能力的目標。我們相信，隨著我們努力實現 2026 財年目標，我們可以在未來繼續保持這種成長。

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

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，我們想開始問答環節。接線員，請繼續。

(Operator Instructions) Matt Summerville, D.A. Davidson.

（操作員說明）Matt Summerville，D.A.戴維森。

A couple of questions. First, just on the Locking side of the business, obviously growing north of 20% in the quarter. How fast do you think the market is actually growing? And what are you guys doing to drive the share capture you're seeing in that market? And then I have a follow-up.

有幾個問題。首先，就鎖定業務而言，本季成長明顯超過 20%。您認為市場實際成長的速度有多快？你們正在做什麼來推動你們在該市場上看到的份額捕獲？然後我有一個後續行動。

The Locking sales have been strong for several quarters in a row now. We have two Locking companies. They're both doing well. We've picked up market share, we believe, during the times of supply chain as our competitors couldn't deliver. Our Dominican factory kept delivering, and we picked up share, we believe. We're very diverse.

鎖具銷售現已連續幾季保持強勁。我們有兩家鎖具公司。他們都做得很好。我們相信，在我們的競爭對手無法提供的供應鏈時代，我們已經獲得了市場份額。我們相信，我們的多明尼加工廠繼續交付，並且我們獲得了市場份額。我們非常多元化。

We're into schools, which is a big need still, all the shootings that still go on, many schools still having -- have not done anything. There's a tremendous need in airport renovations, which are going on throughout the country, there's a tremendous need in hospitals. These needs continue.

我們進入了學校，這仍然是一個很大的需求，所有槍擊事件仍在繼續，許多學校仍然沒有採取任何行動。全國各地都在進行機場改造，醫院也有龐大的需求。這些需求仍在持續。

Our products are also different. We make electrified locks, not just plain old hardware locks, puts us in a different category. And so having these two companies, both performing well at the same time, has created this rise, which was up 18% for the year versus a year ago, and it's 65% of our total hardware sales, equipment sales.

我們的產品也不同。我們生產電動鎖，而不僅僅是普通的老式五金鎖，這使我們處於不同的類別。因此，這兩家公司同時表現良好，創造了這一成長，今年比一年前成長了 18%，占我們硬體銷售、設備銷售總額的 65%。

Can we keep this pace up? I don't know, but I think double digits is certainly a possibility to continue. We don't see any slowing down. We travel along the country. We see a lot of construction still going on despite what you might read in the papers. So activities for the Locking is very good.

我們能保持這個速度嗎？我不知道，但我認為兩位數肯定有可能繼續下去。我們沒有看到任何放緩的跡象。我們沿著這個國家旅行。儘管您可能在報紙上讀到了這些內容，但我們看到許多建設仍在進行中。所以活動對於Locking來說是非常好的。

And then just on the Radio side of the business. You had this recent product launch that you referenced in the prepared remarks. Any early read on the success you're having there?

然後就在廣播業務方面。您在準備好的評論中提到了最近推出的產品。有沒有提前了解您在那裡的成功？

You mentioned the Radio business was down this quarter. It sounds like it's probably going to be down in the fiscal first quarter. Do you see that business reaccelerating to a high single to double-digit growth rate as you move through the year?

您提到本季廣播業務有所下降。聽起來第一財季它可能會下降。您是否認為該業務在這一年中會重新加速達到個位數到兩位數的高成長率？

The Radio business despite the stats that tell you it was down, and it was down, as we've said, 5% sequentially, 10% compared to last year's Q4. It's down in the -- on the radios that produce the lowest recurring. And we are fighting like crazy to get it back, coming out with new features on our radios, which has been well received.

儘管統計數據告訴你廣播業務有所下降，但正如我們所說，它比上一季下降了 5%，與去年第四季相比下降了 10%。它位於產生最低重複頻率的收音機中。我們正在瘋狂地爭取奪回它，並在我們的收音機上推出了新功能，這些功能受到了好評。

But the interesting thing, which I don't know if everybody picks up on, is that the recurring revenue continues to grow because the fire radios continues to do well. And as we've talked over and over about, fire radios, bring in more money than the other radios.

但有趣的是，我不知道是否每個人都注意到這一點，因為消防收音機繼續表現良好，經常性收入持續成長。正如我們一遍又一遍地談論的那樣，消防收音機比其他收音機能帶來更多的錢。

So I was very impressed and happy that despite those stats that we talked about, that recurring was up 27% and up 26% for the year. Fire is doing really well. Doing well with our new distributor. It's doing well with our big accounts that we've added that we've talked about, some of the big names. That, we believe, is going to just keep getting better, and we'll get the lower end radios to do better as well.

因此，令我印象深刻和高興的是，儘管我們談論了這些統計數據，但今年的經常性增長了 27%，增長了 26%。火確實做得很好。與我們的新經銷商合作良好。我們已經談論過的一些大客戶，我們的大客戶表現良好。我們相信，這一點會不斷變得更好，而且我們也會讓低端收音機做得更好。

And then we'll have both sides contributing and then you'll see the growth of the overall growth on the hardware side of the radios. And we're working hard also to get through all the distribution issues.

然後我們會讓雙方都做出貢獻，然後你會看到無線電硬體的整體成長。我們也在努力解決所有的分配問題。

We've talked about that before. Some of our distributors had too much. We have one distributor left that has a little too much working hard to reduce that, that will help as well.

我們之前已經討論過這一點。我們的一些經銷商有太多。我們還剩下一個經銷商，他們在努力減少這種情況方面做得有點太多，這也會有所幫助。

Jim Ricchiuti, Needham.

吉姆·里基烏蒂，李約瑟。

Maybe as a follow-up to the previous question. As we think about fiscal '25, is it -- is one way to think about it, Kevin, some normalization of demand in the fire radio business, which I assume you're getting some benefit from having the new distributor coming on stream and scaling and maybe this other distributor where it's possible they're still over inventoried with the lower-end radio. So is that one way to think about the business as it over the next several quarters?

也許作為上一個問題的後續。當我們考慮 25 財年時，凱文，消防無線電業務的需求有些正常化，這是一種思考方式，我認為您會從新經銷商的上線中獲得一些好處，擴展，也許還有其他經銷商，他們的低端收音機庫存可能仍然太多。那麼，這是考慮未來幾季業務的一種方式嗎？

Well, normalization would be good, but we want more than normalization we want enhancement, I'll call it. We've got relationships with some big names, which we've talked about.

好吧，標準化會很好，但我們想要的不僅僅是標準化，我們想要增強，我稱之為增強。我們與一些知名人士建立了關係，我們已經討論過。

We want to start to see those translate into much higher radio sales. And we think they will. We're spending a lot of time with these big names and they have the potential to do a lot more. So between the big names --

我們希望開始看到這些轉化為更高的收音機銷售。我們認為他們會的。我們花了很多時間與這些知名人士合作，他們有潛力做更多的事情。所以在大牌之間--

So if you were suggesting -- yes, go ahead, I'm sorry.

所以，如果你建議——是的，請繼續，我很抱歉。

I was just going to say so between the big names and the normalization of what has been occurring in the past, we should see nice growth in the overall Radio segment, not just Fire.

我只是想說，在大品牌和過去發生的事情的正常化之間，我們應該看到整個無線電領域的良好成長，而不僅僅是 Fire。

Got it. So it sounds like you anticipate continued strength in the fire radio side of the business. But also --

知道了。因此，聽起來您預計消防無線電業務將繼續保持強勁勢頭。但是也--

Yes. We haven't seen that slow down at all, ever.

是的。我們從來沒有看到這種速度有任何放緩。

Is there any color you can provide? I know it's a bit of a mixed picture with respect to the distributors. But is there any color you could provide on some of the sell-through metrics in terms of what you're seeing out there?

有什麼顏色可以提供嗎？我知道對於經銷商來說，情況有點複雜。但是，根據您所看到的情況，您是否可以對某些銷售指標提供任何顏色？

Well, we added the new distributor. There's no issues with them. They're doing great. They may become a 10% hardware customer in the near future, we hope. They're doing really well. We've only had them for a year. Then you have two or three other big ones.

好吧，我們增加了新的經銷商。他們沒有任何問題。他們做得很好。我們希望他們可能在不久的將來成為 10% 的硬體客戶。他們做得非常好。我們只擁有它們一年。然後你還有另外兩三個大的。

And the other one, who's our biggest one, Anixter, Wesco, no issue. They worked through their inventory. We have another one. We got to do more work with that one.

另一位是我們最大的一位，Anixter、Wesco，沒問題。他們清查了庫存。我們還有另一個。我們必須對此做更多的工作。

And then once we get through that one, then I think it's all good. The sell-through stats are good, but when they have too much inventory, even though they're selling, we need new orders, more orders. So sell-through great, but let's get their inventory in shape so they can place another round. That's what it is.

一旦我們度過了這一關，我想一切都很好。銷售統計數據很好，但當他們庫存過多時，即使他們在銷售，我們也需要新訂單，更多訂單。因此，銷售量非常好，但讓我們整理一下他們的庫存，以便他們可以進行另一輪銷售。就是這樣。

Got it. And one final question, just on Prima. How do you view the launch of the product? How satisfied are you with the way the business is starting to develop? I know it's a small part of the revenue right now.

知道了。最後一個問題，就在 Prima 上。您如何看待該產品的推出？您對業務開始發展的方式是否滿意？我知道這只是目前收入的一小部分。

Well, Prima is an important area for us. It's a big market that we don't do a lot in, right? The resi market, residential market, it's a huge market, and a lot of people still have to get away from copper. And why wouldn't they love a 15-minute install?

嗯，Prima 對我們來說是一個重要的領域。這是一個很大的市場，但我們在其中做的並不多，對嗎？黃金市場、住宅市場，這是一個龐大的市場，很多人仍然必須遠離銅。他們為什麼不喜歡 15 分鐘的安裝呢？

The salesman could actually install it, could be in and out in no time. So the markets there, the opportunity is there, we would get $5, $6 of recurring for everyone that gets put in. So we can't turn our back on this market. It's a big area. So we're working hard.

銷售人員可以實際安裝它，可以立即進出。因此，市場在那裡，機會就在那裡，我們將為每個投入的人獲得 5 美元、6 美元的經常性回報。所以我們不能忽視這個市場。這是一個很大的區域。所以我們正在努力工作。

We introduced it, I don't know, I'm going to say a year ago, roughly. Like any product, it takes time to take hold. We're more optimistic now than we were when we first introduced it. We've done a lot of things, a lot of enhancements, added accessories, added some salespeople whose focus, whose main mission in life is to just work on this.

我們介紹了它，我不知道，我大概是在一年前。與任何產品一樣，它需要時間才能佔據主導地位。我們現在比剛推出它時更樂觀。我們做了很多事情，很多增強功能，增加了配件，增加了一些銷售人員，他們的重點和人生的主要使命就是為此而努力。

We think it's going to all translate into success. That's the hope. Big area. It's all incremental recurring whatever we get out of this.

我們認為這一切都會轉化為成功。這就是希望。面積大。無論我們從中得到什麼，這都是增量重複出現的。

Congrats on the quarter.

恭喜本季。

Jaeson Schmidt, Lake Street.

傑森‧施密特，湖街。

Kevin, I know you noted that ADI is going well. Just curious, if you could provide some additional color on that relationship, if it's tracking to your expectations and how we should expect that ramp in fiscal '25?

凱文，我知道你注意到 ADI 進展順利。只是好奇，您是否可以對這種關係提供一些額外的說明，它是否符合您的預期，以及我們應該如何預期 25 財年的成長？

It's only been a year, very happy, so far, so good. You got to keep working. Stats look good, opportunities there. They are the largest distributor of security products in the industry. They're larger than Wesco, because Wesco distributes other things. ADI distributes security only.

才一年，很開心，到目前為止，一切都很好。你必須繼續工作。統計數據看起來不錯，機會就在那裡。他們是業內最大的安全產品分銷商。它們比 Wesco 規模更大，因為 Wesco 也分銷其他東西。ADI 僅分發安全性。

So for one year in, and we got to work it. It's doing really well. One of the things they've done, they've made introductions for us to large dealers that we didn't have an opportunity to meet. There's 30,000 dealers out there. We don't have them all. We have 12,000 of them. There is another 18,000 we'd love to do business with.

一年來，我們必須努力。它做得非常好。他們所做的事情之一是，他們為我們介紹了一些我們沒有機會見到的大型經銷商。那裡有 30,000 個經銷商。我們沒有全部。我們有 12,000 個。我們也願意與另外 18,000 家公司開展業務。

Well, ADI has relationships with some of the big names out there. And they made an introduction for us to a couple of those big names. And now we have a relationship in selling fire radios to some of those big names. So there's more of that and we just want to keep growing the business with them.

嗯，ADI 與一些知名公司有合作關係。他們向我們介紹了其中的幾個大人物。現在我們與其中一些知名人士建立了銷售消防無線電的關係。所以還有更多這樣的事情，我們只是想繼續與他們一起發展業務。

So far, so good. It could be much better than it is. Like I said earlier, they could be at 10% of our hardware customer, if it keeps up.

到目前為止，一切都很好。它可能比現在好得多。正如我之前所說，如果繼續保持下去，他們可能占我們硬體客戶的 10%。

Okay. That's helpful. And then just as a follow-up, going back to that one distributor that still has excess inventory just based on order patterns you've seen through the September quarter so far, do you expect the inventory to be worked down and that issue to be over after this quarter?

好的。這很有幫助。然後，作為後續行動，回到那個仍然有過剩庫存的分銷商，根據您在 9 月季度到目前為止看到的訂單模式，您是否預計庫存會減少，並且該問題會得到解決本季度結束後？

It's hard to say, Jaeson, because a lot of the business, especially with the big distributors, comes in at the end. So even though we're sitting here on August 26, there's a lot of time left to see what's going to happen in this quarter. So the hope is, yes, but we don't know yet.

傑森，這很難說，因為很多業務，尤其是大經銷商的業務，都是在最後完成的。因此，儘管我們是在 8 月 26 日坐在這裡，但仍有很多時間來了解本季會發生什麼。所以希望是的，但我們還不知道。

Jeremy Hamblin, Craig Hallum Capital.

傑里米·漢布林 (Jeremy Hamblin)，克雷格·哈勒姆資本 (Craig Hallum Capital)。

Congrats on a strong year. I want to come back to your equipment gross margins, which continue to make really strong progress. In terms of thinking about the progression that you're likely to make in FY25, and then as you move forward from there because I think over time or maybe over the next couple of years, you expect that to get to 40% -plus.

恭喜您度過了強勁的一年。我想回到你們的設備毛利率，它繼續取得非常強勁的進步。考慮到您在 2025 財年可能取得的進展，然後當您從那裡向前邁進時，因為我認為隨著時間的推移或可能在未來幾年內，您預計會達到 40% 以上。

But just wanted to get a sense for -- with noting that you have at least one distributor with a little bit of excess inventory, how do you expect that progression to play out here in 2025 and then beyond?

但我只是想了解一下——注意到您至少有一個庫存有點過剩的經銷商，您預計這一進展在 2025 年及以後會如何發展？

Well, the margins will get helped a lot by two things: the mix and the volume. And the margins were helped this quarter, this past quarter, by both things, the mix and the volume. So the mix, having 65% of your sales being hardware sales of locking -- 65% being locking of the hardware sales, that has great margins. That helps a lot. I love radios. They don't have the best margins.

嗯，利潤率將受到兩件事的很大幫助：組合和數量。本季和上季的利潤率都得益於產品組合和銷售。因此，這種組合，65% 的銷售額是鎖定硬體銷售——65% 是鎖定硬體銷售，利潤率很高。這很有幫助。我喜歡收音機。他們沒有最好的利潤。

Of course, they have the best margins in the recurring but we love locking on the hardware side. So we need both, but what we saw this quarter was strong locking, which brings strong margin.

當然，他們在經常性方面擁有最好的利潤，但我們喜歡鎖定硬體方面。所以我們兩者都需要，但本季我們看到的是強有力的鎖定，這帶來了強勁的利潤。

And the volume, the volume going up helps. Because in our factory, in the Dominican Republic, we get leverage from pushing more volume through our factory because it's a labor-intensive factory. You need labor, a lot of labor. It's low-cost labor. You don't need much of anything else.

音量，音量的增大會有所幫助。因為在我們位於多明尼加共和國的工廠，我們可以透過增加工廠的產量來獲得槓桿，因為它是勞動密集型工廠。你需要勞動力，大量的勞動力。這是廉價勞工。你不需要太多其他東西。

So if you get busy, you add more labor. And if you add nothing else, you get overhead absorption. The margins expand and the money drops to the bottom line. We feel strongly that the volume is going to keep going, and it gets better and better.

因此，如果您變得忙碌，就會增加更多的勞動力。如果你不添加任何其他東西，你就會吸收開銷。利潤擴大，資金下降到底線。我們強烈感覺到銷量將會繼續成長，而且會變得越來越好。

We recently bought our second Panasonic chip shooter machine. It's a $1 million machine. What it does? Inserts the components rapidly, more rapidly than anything we've ever had, the iPhones use this machine, and it gives you flexibility so you could change from one product to another product line without disruption. It's our second one.

我們最近買了第二台松下切屑機。這是一台價值 100 萬美元的機器。它有什麼作用？快速插入組件，比我們以往擁有的任何產品都快，iPhone 使用這台機器，它為您提供了靈活性，因此您可以在不中斷的情況下從一種產品更換到另一種產品線。這是我們的第二個。

If we didn't believe that our hardware sales were going to be growing nicely, we wouldn't have bought a second machine. But that's our belief. And higher volume will lead to higher margins.

如果我們不相信我們的硬體銷售會良好成長，我們就不會購買第二台機器。但這就是我們的信念。更高的銷量將帶來更高的利潤。

Just as a quick follow-up in terms of making that progression here over the next couple of years. So getting to 40% -plus by FY26, would be over 1,000 basis points of improved gross margins in your equipment piece of your business. Does that feel like an achievable target here over that time frame?

就像在接下來的幾年裡取得這一進展的快速跟進一樣。因此，到 2026 財年達到 40% 以上，您的設備業務毛利率將提高 1,000 個基點以上。在這段時間內，這感覺是個可以實現的目標嗎？

I guess we'll see how this year goes, but we want to see the progression to close to 40% this year. And I think if we see that, then I'll feel good about our 2026 target. But we have to grow that top line hardware more than it's grown.

我想我們會看看今年的情況如何，但我們希望看到今年的進展接近 40%。我認為，如果我們看到這一點，我會對我們的 2026 年目標感到滿意。但我們必須對頂級硬體進行更多的成長。

We have to continue to see the strength from the locking, which we've seen now for several years in a row. And then the margins will go up. And historically, we've seen a tremendous amount of margin increase when the volume goes up.

我們必須繼續看到鎖定的強度，我們已經連續幾年看到了鎖定的強度。然後利潤就會上升。從歷史上看，當交易量增加時，我們已經看到利潤率大幅增加。

If you go back to our history, in 2018 and 2019, you'll see when the volume kicks up, the margins fly up. Back then, this was pre-COVID, our margins were pushing high 30s, low 40s. There's no reason we can't get back to that.

如果你回顧我們的歷史，在 2018 年和 2019 年，你會發現當銷量增加時，利潤率就會飛漲。當時，在新冠疫情之前，我們的利潤率高達 30 多美元，低至 40 多美元。我們沒有理由不能回到那個話題。

Now considering all the steps we've taken and that locking is a bigger piece of the pie, this is what we're pushing for. So look for the margins to keep going up during fiscal 2025, and then we'll be able to assess whether our goal for 2026 is achievable.

現在考慮到我們已經採取的所有步驟，並且鎖定是一塊更大的蛋糕，這就是我們正在推動的。因此，預計 2025 財年利潤率會持續上升，然後我們就能夠評估 2026 年的目標是否可以實現。

What I will say is our goal for recurring revenue margin, which was 80%, is more than achievable. As you can see, it's 90%.

我要說的是，我們的經常性收入利潤率目標為 80%，是完全可以實現的。正如你所看到的，它是 90%。

I'd like to point out also that our engineering has expanded because they're coming out with new products, the hardware side with recurring revenue, which has never been done in the industry. So our locking lines will generate recurring revenue for the locksmiths and the door specialty installers. And that's a major driver for us.

我還想指出，我們的工程已經擴大，因為他們推出了新產品，硬體方面具有經常性收入，這在行業中從未做過。因此，我們的鎖俱生產線將為鎖匠和門專業安裝人員帶來經常性收入。這是我們的主要驅動力。

So that's going to keep piling on additional hardware sales and recurring revenue. Those products we showed at the ISC show in their basic form, we've got very good feedback on that. And we're continuing to develop them, and we expect those to carry us to recurring revenue and equipment sales for many, many years. It's something that a lot dealers have gotten.

因此，這將繼續增加額外的硬體銷售和經常性收入。我們在 ISC 展會上以基本形式展示的那些產品，我們得到了非常好的回饋。我們正在繼續開發它們，我們希望它們能為我們帶來許多很多年的經常性收入和設備銷售。這是很多經銷商都會得到的東西。

They sell a job and they also get a recurring revenue tail to it. The locksmiths and the door guys don't get that. But with this new product line that we showed, they will get that. So we're very optimistic about the future, and it's very exciting.

他們出售一份工作，並從中獲得經常性收入。鎖匠和門衛不明白這一點。但透過我們展示的新產品線，他們會明白這一點。所以我們對未來非常樂觀，這非常令人興奮。

We also introduced some new radios with additional coverage to them, which have greater coverage and wider variations throughout the whole country. So those will be generating a lot of additional recurring revenue and hardware sales along with them. And everything that we do is underwriters laboratory approved, which is the gold standard.

我們還推出了一些具有額外覆蓋範圍的新收音機，它們在全國範圍內具有更大的覆蓋範圍和更廣泛的變化。因此，這些將帶來大量額外的經常性收入和硬體銷售。我們所做的一切都經過保險商實驗室批准，這是黃金標準。

A lot of our competitors, use secondary level of approvals. And that's good for the smaller companies, but the larger companies, that Kevin was referring to, which are coming to us, want the high level of security with Underwriters Laboratory approval.

我們的許多競爭對手都使用二級審批。這對較小的公司來說是件好事，但凱文提到的較大公司（即來找我們的公司）希望獲得保險商實驗室批准的高水準安全性。

They know that, that's the best way to get their signals and the most reliable equipment out there. So we're proud of that. That's one of our major goals.

他們知道，這是獲取訊號和最可靠設備的最佳方式。所以我們為此感到自豪。這是我們的主要目標之一。

Lance Vitanza, TD Cowen.

蘭斯·維坦扎，TD·考恩。

I'm going to try to get two in, if I can, one on revenue and one on cost. The revenue question is, could you talk about the pricing trends that you're seeing on the services revenue side, fire radios in particular?

如果可以的話，我將嘗試加入兩項，一項是收入，一項是成本。收入問題是，您能否談談您在服務收入方面看到的定價趨勢，特別是消防收音機？

I'm wondering to what extent, if any, you have had to rely on promotional pricing? And do you expect that to potentially be a headwind on gross margins on the service side going forward?

我想知道你們在多大程度上（如果有的話）不得不依賴促銷價格？您認為這可能會成為未來服務方面毛利率的阻力嗎？

We promote as necessary. We've tried not to mess with the formula. The formula has worked since we started this cycle. And so we only adjust or promote as needed, and we'll continue to do that. Fire doesn't need a lot of help. But if it's needed, we'll do it.

我們根據需求進行推廣。我們盡量不搞亂公式。自從我們開始這個週期以來，這個公式就一直有效。因此，我們只會根據需要進行調整或推廣，並且我們將繼續這樣做。火不需要太多幫助。但如果需要的話，我們會做的。

Listen, we had 90% margins to play with. So it's not a big deal. But so far, the formula has been good. On the non-fire radios, I'd say we've been more aggressive in promoting that, and it might be more of that. But again, I try not to mess with the formula.

聽著，我們有 90% 的利潤可以利用。所以這沒什麼大不了的。但到目前為止，這個公式還不錯。在非火無線電方面，我想說我們在推廣方面更加積極，而且可能會更多。但我還是盡量不要搞亂公式。

But we got to keep our eye on the market as needed, we'll adjust. But I think we've been doing pretty well so far in the way we've been handling it.

但我們必須根據需要密切關注市場，我們會進行調整。但我認為到目前為止，我們處理此事的方式做得很好。

And I hope you realize that we get our recurring revenue and our radio sales two different ways. One is the retrofit to the copper jobs that are out in the field now, which are starting to go bad, dead because the Verizon, AT&T do not have to install or repair copper anymore according to government regulations.

我希望您意識到我們透過兩種不同的方式獲得經常性收入和收音機銷售。一是對現有的銅纜工作進行改造，這些工作已經開始惡化，因為 Verizon、AT&T 不再需要根據政府法規安裝或維修銅纜。

So you have about 5 million fire jobs that still need to be converted over. And we have a fabulous radio that the dealers love And as I said, it's the gold standard of the business. So we have that work coming in. Then we have all the new control panels with built-in radios.

因此，仍有大約 500 萬個消防工作需要轉換。我們有一台深受經銷商喜愛的精美收音機 正如我所說，這是該行業的黃金標準。所以我們正在進行這項工作。然後我們擁有內建無線電的所有新控制面板。

So our new work for new buildings, refurbs of buildings, those radios are built into the control panel, which gets us hardware sales of smoke detectors and carbon oxide detectors and all the other peripherals that go along with the fire systems. So we get it two ways.

因此，我們針對新建築、翻新建築的新工作，將這些無線電內置於控制面板中，這為我們帶來了煙霧探測器和碳氧化物探測器以及與消防系統配套的所有其他外圍設備的硬體銷售。所以我們有兩種方式。

We figure we have about another five to seven years of retrofit to those five million jobs that need to be upgraded. The dealer typically doesn't pull out the system. It just puts a new communication link in like StarLink and since our radios work on all the different panels that are out there in brands, the opportunity is tremendous for us.

我們預計，我們還需要大約五到七年的時間來改造這 500 萬個需要升級的工作。經銷商通常不會撤出該系統。它只是像 StarLink 一樣建立了一個新的通訊鏈路，並且由於我們的無線電可以在品牌中的所有不同面板上工作，因此對我們來說機會是巨大的。

Dick, that's super helpful. If I can just squeeze in the cost question. You mentioned on the call that both R&D and SG&A were up quite a bit, and you called out a few of the items that drove that on the SG&A side. I might have missed it, but I didn't hear so much about the R&D side.

迪克，這非常有幫助。如果我能簡單地談談成本問題的話。您在電話會議上提到，研發和銷售、一般管理費用（SG&A）都大幅成長，並且您指出了推動銷售、一般管理費用（SG&A）方面成長的一些因素。我可能錯過了，但我沒有聽到太多有關研發方面的資訊。

Could you talk about what's going on there and how we should model both of those line items going forward? I mean is -- on the SG&A side, is $10 million a good quarterly run rate from here?

您能否談談那裡發生了什麼以及我們應該如何對這兩個訂單項目進行建模？我的意思是 - 在 SG&A 方面，1000 萬美元是一個不錯的季度運行率嗎？

Yes, it will be lower than what you just saw and it will spike during ISC, which this coming year, fiscal '25 will also be in Q4. But absent of that, that's a good level. And we continue to watch it. If we could reduce it, we're going to reduce it.

是的，它會低於您剛剛看到的值，並且會在 ISC 期間飆升，而明年的 25 財年也將在第四季度。但如果沒有這一點，這已經是一個很好的水平了。我們將繼續關注。如果我們可以減少它，我們就會減少它。

But as we've grown we've had to make steps, which we all -- you guys all know about, made certain steps, changing accounting firms, adding an internal auditor, things like that we've had to do. We're happy that we have done it.

但隨著我們的成長，我們必須採取措施，我們所有人——你們都知道，採取了某些措施，更換會計師事務所，增加內部審計師，諸如此類我們必須做的事情。我們很高興我們做到了。

On the R&D side, everybody always says is, why don't you hire a whole bunch of engineers? Well, we don't want to be like alarm.com who has 100s of engineers, but we do have the ability to hire more. And when our Head of Engineering comes to us and says, hey, if you can get me these two or three guys, I could get XYZ out a lot sooner.

在研發方面，每個人總是說，為什麼不僱用一大堆工程師呢？好吧，我們不想像 Alarm.com 那樣擁有數百名工程師，但我們確實有能力僱用更多工程師。當我們的工程主管來找我們說，嘿，如果你能給我這兩三個人，我就可以更快地把 XYZ 搞出來。

We tell him, do it, go for it, we have the ability. So the $3 million range for R&D is the new standard, I would say. And this increase came from adding maybe six or seven engineers and salary increases, all well worth doing, gets us to where we want to go faster.

我們告訴他，去做吧，去做吧，我們有能力。所以我想說，300 萬美元的研發範圍是新標準。這一增長來自於增加大約六到七名工程師和加薪，所有這些都是值得做的，讓我們更快地到達我們想要的地方。

(Operator Instructions) Raj Sharma, B. Riley.

（操作員說明）Raj Sharma、B. Riley。

Congratulations on the solid financials and the good quarter, again. So with the sell-through stats getting better inventories and hoping to get worked out from your comments.

再次恭喜穩健的財務狀況和良好的季度業績。因此，隨著銷售統計數據獲得更好的庫存，並希望從您的評論中解決。

The inclusion in the Access Alarm's segment was down, I think, 21% year on year. So the radios that are 59% of the mix, they were down 10%, when you're saying fire alarms were up significantly with a higher monthly recurring revenues? Can you help breakdown -- I'm sorry?

我認為訪問警報部分的包含量比去年同期下降了 21%。那麼，當您說火警警報器顯著增加且每月經常性收入更高時，佔混合比例 59% 的收音機下降了 10%？你能幫忙分解一下嗎——對不起？

Yes. I was just going to say, yes, fire was up. We don't break out, how much is fire? How much is nonfire? We do say fire is more than half.

是的。我只想說，是的，火已經燃起來了。我們不爆發，火有多大？不火的要多少錢？我們確實說火佔了一半以上。

Right, right. So can you help break down the portion of the intrusion access alarm that didn't do too well, I guess? And does that portion of the mix not have recurring revenues?

對，對。那麼我想你能幫忙分解入侵訪問警報中表現不佳的部分嗎？這部分組合是否沒有經常性收入？

Yes, the part that has recurring other radios, nothing else. And we don't break it out, Raj, the way you might want. I gave you what I could tell you and -- most of the increase is due to fire and the overall decrease is a large chunk of nonfire radios that were doing tremendous during the supply chain issue with the 3G Sunset, us being the only company who could deliver when nobody else could and everybody loading up.

是的，就是重複播放其他收音機的部分，僅此而已。拉傑，我們不會用你想要的方式來解決這個問題。我已經向您提供了我可以告訴您的信息，並且- 大部分增加是由於火災造成的，總體減少是由於大量非火災無線電設備在3G Sunset 的供應鏈問題期間發揮了巨大作用，我們是唯一一家這樣做的公司當其他人都無法交付並且每個人都在加載時，我們可以交付。

You've got to work through that. The comps are easier now. So I think as we head into fiscal 2025, it will be an easier road for us compared to some of the difficult comps we had in 2024.

你必須解決這個問題。現在比較更容易了。因此，我認為，當我們進入 2025 財年時，與 2024 年的一些困難比較相比，這對我們來說將是一條更容易的道路。

Got it. And then -- so how should we model this Access Alarm side growing in the next few quarters you think, Kevin?

知道了。然後，凱文，您認為我們應該如何對未來幾季成長的訪問警報方面進行建模？

Well, I think you're going to see improvement in the radio sales. We've done a lot. We've reduced -- we've helped to work to reduce the inventory levels at the distributors.

嗯，我想你會看到收音機銷售的改善。我們已經做了很多。我們已經減少了——我們幫助降低了經銷商的庫存水準。

We have an easy comp going forward for the next few quarters. I expect it to be up. I don't want to -- on this call, put out percentage increases. I think it's going to be doing better. It has to.

我們在接下來的幾個季度裡會有一個簡單的競爭。我預計它會上漲。我不想在這次電話會議上宣布增加百分比。我認為它會做得更好。必須如此。

Got it. And then on the service revenue side, do you -- I mean, in the recent past and it's had stellar growth rates. And do you still expect service revenues to grow greater than 25%, greater than 30% year on year going forward?

知道了。然後在服務收入方面，我的意思是，在最近的一段時間內，它的成長率非常驚人。您是否仍預期未來服務收入年增超過 25%、超過 30%？

Working hard on it, 27% was pretty impressive this quarter. I would like to keep it in the -- in that range. We're doing a lot of things to enhance what we're already doing. We have Prima. Prima will add more recurring revenue that we don't have in a market that we don't do a lot in, the residential market.

經過努力，本季 27% 的成績相當可觀。我想將其保持在這個範圍內。我們正在做很多事情來加強我們已經在做的事情。我們有普里瑪。Prima 將增加更多我們在住宅市場上沒有做太多的經常性收入。

As Dick mentioned earlier, we're working on recurring revenue from locking with Air Access. These are things that are going to get that percentage potentially to go even higher.

正如迪克之前提到的，我們正在努力透過 Air Access 鎖定來獲得經常性收入。這些事情將使這一比例有可能進一步上升。

But for right now, I was super happy with 27%. I'd like to keep it at the mid-20s for now, that would be great. And as these other things kick in, it will go higher.

但目前，我對 27% 感到非常滿意。我現在想把它保持在20多歲左右，那就太好了。隨著這些其他事情的開始，它會變得更高。

(Operator Instructions) Thank you, ladies and gentlemen, this concludes our question-and-answer session today. I will turn the call back over to Richard Soloway, CEO, for closing comments.

（操作員說明）謝謝女士們、先生們，我們今天的問答環節到此結束。我會將電話轉回給執行長理查德·索洛韋 (Richard Soloway)，以徵求結束意見。

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

感謝大家參加今天的電話會議。像往常一樣，如果您有任何其他問題，請隨時致電弗朗西斯、凱文或我本人以獲取更多資訊。

We thank you for your interest and support and look forward to speaking to you all again in a few months to discuss NAPCO's fiscal Q1 results. Bye-bye. Have a great day.

我們感謝您的關注和支持，並期待在幾個月後再次與大家交談，討論 NAPCO 第一季的財務表現。再見。祝你有美好的一天。

Ladies and gentlemen, this concludes your conference for today. We thank you for participating, and we ask that you please disconnect your lines.

女士們、先生們，今天的會議到此結束。我們感謝您的參與，並請您斷開線路。