NAPCO Security Technologies Inc (NSSC) 2025 Q1 法說會逐字稿

Good morning, ladies and gentlemen and welcome to the Napco Security Technologies Q1 2025 earnings conference call at this time. All lines are in listen-only mode following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance. Please press star zero for the operator. This call is being recorded on Monday, November 4th 2024. I would now like to turn the conference over to Mr Francis Okoniewski.

早安，女士們、先生們，歡迎此時參加 Napco Security Technologies 2025 年第一季財報電話會議。演示結束後，所有線路均處於僅聽模式，我們將進行問答環節。如果在通話期間的任何時間您需要立即協助。請為操作員按星零。此電話錄音於 2024 年 11 月 4 日星期一進行。現在我想將會議交給弗朗西斯·奧科涅夫斯基先生。

Please go ahead.

請繼續。

Thank you and good morning everyone. My name is Francis Okoniewski, Vice President of Industrial Relations for Napco Security Technologies.

謝謝大家，早安。我叫 Francis Okoniewski，Napco Security Technologies 勞資關係副總裁。

And we want to thank you all for joining today's conference call to discuss financial results for our fiscal first quarter, 2025.

我們要感謝大家參加今天的電話會議，討論 2025 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 our quarterly results.

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。

If you have not, a copy of the release is available in the investor relations section of our website, www napcosecurity dotcom on the call today are Dick Soloway, Chairman and CEO of Napco Security Technologies and Kevin Buchel, President, Chief Operating Officer and Chief Financial Officer before we begin, let me take a moment to read the forward-looking statement as it 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.

如果您還沒有，請在我們網站wwwnapcosecurity.com 的投資者關係部分獲取該新聞稿的副本。負責Kevin Buchel財務官員，在我們開始之前，讓我花點時間閱讀前瞻性聲明，因為本簡報包含的前瞻性聲明基於管理層的判斷、信念、對未來業績的當前預期、估計、預測和預測。

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 or as a reoccurring monthly revenue.

這些前瞻性陳述包括但不限於與成長、公司業務驅動因素（例如學校安全產品）、經常性收入服務、潛在市場機會、我們的經常性收入產品對客戶和經銷商帶來的好處、我們控制費用的能力以及軟體即服務或每月重複收入的成本和預期年運行率。

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements.

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。

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.

這些因素包括但不限於我們的SEC 文件中所述的風險因素，包括我們10-K 表格的年度報告，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結果存在重大差異看起來的陳述。

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.

儘管我們認為前瞻性陳述中所反映的預期是合理的。我們無法保證未來的結果、活動水準、表現或成就。

You should not place undue reliance on these forward-looking statements. All information provided in today's press release and this conference call are 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。

I'll turn the call over to Dick in a moment. But before I do, I want to mention, we will be attending the International Security Conference Industry trade Show, November 20th and 21st in New York City's Javits Center.

我一會兒就把電話轉給迪克。但在此之前，我想提一下，我們將參加 11 月 20 日至 21 日在紐約市賈維茨中心舉行的國際安全會議工業貿易展。

We'll be showcasing an array of exciting new products and if anyone is interested in attending, please contact me and I will arrange to get you a pass.

我們將展示一系列令人興奮的新產品，如果有人有興趣參加，請與我聯繫，我會安排給您通行證。

In addition, we're actively planning our investor relations calendar for non deal roadshow and conference attendance in the near future.

此外，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。

Investor outreach is important ACO and I'd like to thank all those who assist us in these types of events.

ACO 與投資者的聯繫非常重要，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'll be attending the Robert Baird Global Industrial Conference in Chicago, the Stevens Annual Investment Conference in Nashville, the U BS Global Industrials and Transportation Conference in Palm Beach, Florida Imperial Capital's 21st annual Security Investor Conference in New York City and Needham's 27th annual growth conference also in New York City.

在接下來的幾週內。我們將參加在芝加哥舉行的羅伯特·貝爾德全球工業會議、在納許維爾舉行的史蒂文斯年度投資會議、在佛羅裡達州棕櫚灘舉行的瑞銀全球工業和運輸會議、在紐約市舉行的帝國資本第21 屆年度證券投資者會議和在紐約市舉行的Needham 第27 屆年度證券投資者會議成長會議也在紐約市舉行。

In addition, we'll be doing a virtual Non deal road show with Craig Hem on November 11th.

此外，我們將於 11 月 11 日與 Craig Hem 一起進行虛擬非交易路演。

With that out of the way. Let me turn the call over to Richard Soloway, Chairman and CEO of Napco Security Technologies.

就這樣吧。讓我將電話轉交給 Napco Security Technologies 董事長兼執行長 Richard Soloway。

Six, the floor is yours.

六、地板是你的了。

Thank you Fran, good morning, everyone and welcome to our conference call.

謝謝弗蘭，大家早安，歡迎參加我們的電話會議。

We appreciate you joining us as we review our fiscal first quarter, 2025 performance.

感謝您與我們一起回顧 2025 年第一財季的表現。

I'm pleased to announce that we achieved another record sales result of 44 million this quarter marking our 16th consecutive quarter of record sales for a quarterly reporting period.

我很高興地宣布，本季我們再次創下 4,400 萬輛的銷售業績，標誌著我們連續第 16 個季度創下季度報告期間的銷售記錄。

Our recurring monthly service revenue continues to show impressive growth increasing by 22% in Q1 and representing 48% of total revenue, our net income of 11.2 million was also a Q1 record.

我們的每月經常性服務收入持續呈現令人印象深刻的成長，第一季成長了 22%，佔總收入的 48%，我們的淨利潤 1,120 萬也創下了第一季的記錄。

Our financial position remains robust with cash balances reaching 102 million. Importantly, we remain debt free along with a continued strong cash flow position.

我們的財務狀況依然強勁，現金餘額達到 1.02 億美元。重要的是，我們保持無債務狀態，現金流狀況持續強勁。

Strategically, we're focused on leveraging our key industry trends including wireless fire and intrusion alarms, enhancing recurring service revenues, school security solutions, enterprise access control systems and architectural locking products.

從策略上講，我們專注於利用我們的主要行業趨勢，包括無線火災和入侵警報、提高經常性服務收入、學校安全解決方案、企業門禁系統和建築鎖定產品。

Here at Napco, our management team is committed to driving growth, profitability and return on equity while maintaining effective cost management.

在 Napco，我們的管理團隊致力於推動成長、獲利能力和股本回報率，同時保持有效的成本管理。

These metrics are core to our business strategy and align closely with shareholder interests.

這些指標是我們業務策略的核心，並與股東利益密切相關。

Now I'll turn the call over to our President, Chief Operating Officer and Chief Financial Officer Kevin Buchel, who'll provide an overview of our fiscal first quarter, 2025 results after Kevin's remarks, I'll return to discuss our strategies and outlook in more detail. Kevin the floor is yours.

現在我將把電話轉給我們的總裁、營運長兼財務長 Kevin Buchel，他將在 Kevin 演講後概述我們 2025 年第一財季的業績，我將回來討論我們的策略和前景更詳細地說。凱文，地板是你的。

Thank you, Dick. Good morning, everybody.

謝謝你，迪克。大家早安。

Net sales for the three months ended, September 30 2024 increased 6% to a quarterly record $44 million as compared to $41.7 million for the same period a year ago, recurring monthly service revenue continued its strong growth increasing 22% in Q1 to $21.1 million as compared to $17.3 million for the same period. Last year. Our recurring service revenues now have a prospective annual run rate of approximately $85.2 million based on October 2024 recurring service revenues. And that compares to $83.5 million based on July 2024 recurring service revenues which were reported back in August.

截至2024 年9 月30 日的三個月淨銷售額成長6%，達到季度創紀錄的4,400 萬美元，而去年同期為4,170 萬美元，每月經常性服務收入持續強勁成長，第一季成長22 %，達到2,110 萬美元。去年。根據 2024 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 8,520 萬美元。相較之下，8 月報告的 2024 年 7 月經常性服務收入為 8,350 萬美元。

The increase is due to the continued strength of our line of Starlink radios, particularly our Starlink fire radios. Our Starlink radio sales increased 93% compared to Q1 last year. It increased 23% sequentially and it represented the highest level of radio sales since Q3 of fiscal 2023 which was the last quarter positively affected by the Verizon three G sunset as we've previously discussed as distributors reduced their radio inventory levels and sell through is strong. We expect to see increased radio sales. That's what we saw in Q1 and we expect radio sales to continue to be a key contributor to our equipment sales and lead to the continued strong growth of our highly profitable recurring service revenues.

這一成長是由於我們的 Starlink 無線電產品線，特別是我們的 Starlink 消防無線電產品線的持續強勁。與去年第一季相比，我們的 Starlink 收音機銷量成長了 93%。它環比增長了23%，代表了自2023 財年第三季度以來收音機銷量的最高水平，這是受Verizon 3G 日落積極影響的最後一個季度，正如我們之前討論的那樣，分銷商減少了收音機庫存水平，銷售強勁。我們預計收音機銷售量將會增加。這就是我們在第一季看到的情況，我們預計收音機銷售將繼續成為我們設備銷售的主要貢獻者，並導致我們高利潤的經常性服務收入持續強勁成長。

Equipment sales for the quarter decreased 6% to $22.9 million. As compared to $24.4 million last year.

該季度的設備銷售額下降 6%，至 2,290 萬美元。相比之下，去年為 2,440 萬美元。

This decrease was primarily due to locking sales decreasing 8% as compared to Fiscial Q1 2024 as partially offset by the aforementioned strong staring radio sales.

這一下降主要是由於鎖定銷售額與 2024 年第一季相比下降了 8%，但部分被上述強勁的收音機銷售所抵消。

The decrease in locking sales was primarily attributable to several locking distributors efforts to temporarily lower their inventory levels.

鎖具銷售額的下降主要是由於一些鎖具分銷商努力暫時降低庫存水準。

And this we believe is temporary. Unlike the radios that were in the channel which lasted several quarters. This is different gross profit for the three months ended. September 30 2024 increased 10% to $24.6 million with a gross margin of 56% as compared to $22.4 million with a gross margin of 54% for the same period. Last year. Gross profit for recurring service revenues for the quarter increased 24% to $19.2 million with a gross margin of 91% as compared to $15.5 million with a gross margin of 90% last year.

我們認為這是暫時的。與持續了幾個季度的頻道中的收音機不同。這是截至三個月的不同毛利。2024 年 9 月 30 日成長 10%，達到 2,460 萬美元，毛利率為 56%，而同期為 2,240 萬美元，毛利率為 54%。去年。本季經常性服務收入的毛利成長了 24%，達到 1,920 萬美元，毛利率為 91%，而去年的毛利率為 1,550 萬美元，毛利率為 90%。

Gross profit for equipment revenues in Q1 decreased by 22% to $5.4 million with a gross margin of 24% as compared to $6.9 million with a gross margin of 28% last year.

第一季設備收入毛利下降 22%，至 540 萬美元，毛利率為 24%，而去年的毛利率為 690 萬美元，毛利率為 28%。

The decrease in equipment gross profit is primarily the result of product mix. As the Strong Starlink radio sales have a s a significantly lower gross margin than door locking products. But of course, ultimately lead to increases in our recurring revenue. Business research and development costs for the quarter increased 25% to $3.1 million or 7% of sales as compared to $2.4 million or 6% of sales. For the same period. A year ago, the increase for the three months primarily resulted from annual compensation increases and the hiring of additional engineers selling general and administrative expenses for the quarter increased 15% to $9.7 million or 22% of net sales as compared to $8.4 million or 20% of net sales for the same period. Last year. The increases in SG&A for the three months were primarily due to compensation increases. The hiring of additional staff increases in advertising and insurance costs as partially offset by decreases in professional fees.

設備毛利的下降主要是產品結構的影響。由於強星鏈收音機的銷售毛利率明顯低於門鎖產品。但當然，最終會導致我們經常性收入的增加。本季的業務研發成本增加了 25%，達到 310 萬美元，佔銷售額的 7%，而同期為 240 萬美元，佔銷售額的 6%。同一時期。一年前，這三個月的成長主要是由於年度薪酬增加以及僱用額外的工程師，該季度銷售一般和管理費用增加了15%，達到970 萬美元，佔淨銷售額的22%，而相比之下，該季度的總銷售額為840 萬美元，佔淨銷售額的20%同期淨銷售額。去年。這三個月的銷售管理費用 (SG&A) 增加主要是因為薪資增加。僱用更多員工會增加廣告和保險成本，但部分被專業費用的減少所抵消。

Operating income for the quarter increased 3% to $11.9 million compared to $11.6 million for the same period last year, interest and other income for the three months increased 160% to $1.1 million as compared to $440,000. Last year.

該季度的營業收入成長了 3%，達到 1,190 萬美元，而去年同期為 1,160 萬美元；三個月的利息和其他收入成長了 160%，達到 110 萬美元，而去年同期為 44 萬美元。去年。

The increase for the three months ended, September 30 2024 was primarily due to increased interest and dividend income from the company's cash and short term investments.

截至2024年9月30日的三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 increased by 20%. $298,000 or $298,000 to $1.8 million with an effective tax rate of 14% as compared to $1.5 million with an effective tax rate of 12.6% last year. The increase in the provision for the three months was due to higher taxable income as well as higher non deductible stock based compensation expense net income for the quarter increased 7% to a quarterly record $11.2 million or 30¢ per diluted share as compared to $10.5 million or 28¢ per diluted share for the same period last year. And that represents 25% of net sales adjusted ebita for the quarter decreased 4% to $12.3 million or 33¢ per diluted share as compared to $12.9 million or 35¢ per diluted share for the same period a year ago. And that equates to an adjusted Ibazar margin of 28%.

這三個月的所得稅撥備增加了20%。298,000 美元或 298,000 美元至 180 萬美元，有效稅率為 14%，而去年為 150 萬美元，有效稅率為 12.6%。這三個月撥備增加的原因是應稅收入增加以及不可抵扣股票補償費用增加，該季度淨利潤增長7%，達到季度創紀錄的1120 萬美元，即稀釋後每股收益30 美分，而稀釋後每股收益為1,050 萬美元或去年同期稀釋後每股收益 28 美分。這佔本季調整後淨銷售額的 25%，與去年同期的 1,290 萬美元或稀釋後每股 35 美分相比，下降了 4% 至 1,230 萬美元或稀釋後每股 33 美分。這相當於調整後的伊巴扎爾利潤率為 28%。

Moving on to the balance sheet. As of September 30 2024 the company had $102 million in cash, cash equivalents, cash equivalents, other investments and marketable securities. And that compares to $97.7 million as of June 30 2024 and that's a 5% sequential increase.

繼續看資產負債表。截至2024年9月30日，該公司擁有1.02億美元的現金、現金等價物、現金等價物、其他投資和有價證券。相比之下，截至 2024 年 6 月 30 日，這一數字為 9,770 萬美元，季增了 5%。

The company had no debt as of September 30 2024 cash provided by operating activities for the three month sentence. September 30 2024 was $12 million. And that compared to $11.2 million for the same period last year. And that's a 7% increase.

截至 2024 年 9 月 30 日，該公司沒有因三個月刑期經營活動提供的現金而產生的債務。2024 年 9 月 30 日為 1,200 萬美元。相比之下，去年同期為 1,120 萬美元。增幅為 7%。

Working capital is defined as current assets. Less current liabilities was $146.7 million on September 30 2024. And that compared with working capital of 146.5 million on June 30 2024 current ratio is defined as current assets divided by current liabilities 6.9 to 1 at September 30 2024 and 7.6 to 1 at June 30 2024.

營運資金定義為流動資產。2024 年 9 月 30 日減去流動負債為 1.467 億美元。與2024年6月30日營運資本1.465億相比，流動比率定義為2024年9月30日流動資產除以流動負債6.9比1，2024年6月30日7.6比1。

And CapEx for the quarter was $680,000. And that compared to $256,000 in the prior year period, that concludes my formal remarks and I would now like to return the call back to Richard.

該季度的資本支出為 680,000 美元。與去年同期的 256,000 美元相比，我的正式演講結束了，現在我想將電話回給理查德。

Kevin. Thank you. Fiscal Q1 2025 sales of 44 million and net income of 11.2 million were both Q1 record breakers.

凱文.謝謝。2025財年第一季銷售額為4,400萬美元，淨利為1,120萬美元，均打破第一季紀錄。

Recurring service revenues remained strong and was 48% of our revenue. And it generated a very profitable gross margin of 91%.

經常性服務收入依然強勁，占我們收入的 48%。它產生了高達 91% 的高利潤毛利率。

A balance sheet continues to get stronger with cash and cash equivalents and other investments growing even after our continuing dividend program and opportunistic stock buybacks. Despite the decline in locking hardware. This quarter, we haven't lost sight into the significant opportunity for continued growth from spending driven by funded governmental infrastructure projects as well as millions of dollars going forward to state and federal level program like Florida's School Hardening Act, Indiana's secured school safety grant program and many states like Texas that have approved over $100 million in increased security funds, security and health care and retail loss prevention as well as in multi dwelling, commercial and residential applications are also providing opportunities for growth.

即使在我們持續進行股息計劃和機會主義股票回購之後，資產負債表仍繼續變得更加強勁，現金和現金等價物以及其他投資仍在增長。儘管鎖定硬體有所下降。本季度，我們並沒有忽視政府資助的基礎設施項目以及州和聯邦級計劃（如佛羅裡達州學校強化法案、印第安納州安全學校安全撥款計劃）推動的支出帶來的持續增長的重大機會。斯州等許多州已經批准了超過1 億美元的資金，用於增加安全資金、安全和醫療保健、零售損失預防以及多住宅、商業和住宅應用，這也提供了成長機會。

We continue to remain focused on further penetrating each of these markets.

我們將繼續專注於進一步滲透這些市場。

A new growth opportunity in commercial locking and access control is a long awaited MVP hosted access system which could generate substantial hardware sales and reoccurring revenue for both the installing dealer and for Napco, this new innovative IP technology systems enables wireless cloud access for end users of the system.

商業鎖定和存取控制領域的一個新的成長機會是期待已久的MVP 託管存取系統，它可以為安裝經銷商和Napco 帶來大量的硬體銷售和經常性收入，這種新的創新IP 技術系統為最終用戶提供無線雲端存取系統。

We will also be showing a new MVP system at this month's International Security Expo at the Javits Center in New York City with thousands of installing dealers. We'll see it in a, we'll see it in action. We welcome any of investor who would like to come and see the show to please contact Fran and it'll be very exciting. You'll see dealers, distributors and our competitors there and you'll get a picture of how powerful Napco is in the industry.

我們也將在本月於紐約市賈維茲中心舉行的國際安全博覽會上展示新的 MVP 系統，屆時將有數千名安裝經銷商。我們將在其中看到它，我們將在行動中看到它。我們歡迎任何想來觀看展會的投資者聯繫Fran，這將是非常令人興奮的。您將在那裡看到經銷商、分銷商和我們的競爭對手，並且您將了解 Napco 在行業中的強大實力。

We're excited about the potential of this technology for new installations as well as retrofit or upgrade of existing locks with ease which would ultimately drive increased equipment sales and reoccurring revenue.

我們對這項技術在新安裝以及輕鬆改造或升級現有鎖的潛力感到興奮，最終將推動設備銷售和經常性收入的增加。

Our Starlink radio sales were strong in Q1 as alarm dealers recognize that our radios offer the broadest coverage of both Verizon and AT&T networks combined with feature rich capabilities that our dealers generally appreciate.

我們的 Starlink 收音機銷售在第一季度表現強勁，因為警報經銷商認識到我們的收音機提供了 Verizon 和 AT&T 網路最廣泛的覆蓋範圍，並具有經銷商普遍讚賞的豐富功能。

Our R&D team is continually enhancing these high performance radios designed for straightforward installations and compatibility with all fire and burglar alarm panels. Ours and our competitors alike, no other company can offer this level of versatility.

我們的研發團隊不斷增強這些高效能無線電，旨在實現簡單安裝並與所有火災和防盜警報面板相容。無論是我們的公司還是我們的競爭對手，沒有其他公司能夠提供這種程度的多功能性。

Unlike many competitors, our radios are also underwriters laboratory certified, which is the industry gold standard.

與許多競爭對手不同，我們的收音機還通過了保險商實驗室認證，這是行業黃金標準。

There are still millions of commercial buildings and residences from offices and hospitals to schools and coffee shops and restaurants that need to transition from legacy copper phone lines to cellular connectivity with Starlink. We're ideally positioned to continue strong growth in this market.

仍有數以百萬計的商業建築和住宅，從辦公室、醫院到學校、咖啡店和餐館，需要從傳統的銅質電話線過渡到透過星鏈進行蜂窩連接。我們處於理想的位置，可以在這個市場上繼續強勁成長。

Our latest Starlink fire max two communicator for commercial fire and alarm systems includes dual sim technology dynamically using either the Verizon or the AT&T networks for optimum signal strength.

我們最新的 Starlink fire max 2 通訊器適用於商業火災和警報系統，包括雙 SIM 卡技術，動態使用 Verizon 或 AT&T 網路以獲得最佳訊號強度。

This streamlined solution which dealers love will simplify their inventory while providing our feature rich experience for them.

這種深受經銷商喜愛的簡化解決方案將簡化他們的庫存，同時為他們提供功能豐富的體驗。

Our recently introduced Prima by Napco, a new all in one panel for security installation and connected home with a 15 minute installation remains a very important focus for the company.

我們最近推出的 Prima by Napco 是一款用於安全安裝和連網家庭的全新一體式面板，只需 15 分鐘即可完成安裝，這仍然是公司非常重要的關注點。

Our goal is for prima to address an important mass segment of the security market including residential and small business systems with built in wifi and cellular radio communications, customer alert notifications and video and smart home subscription options for each installed system. The security dealer as well as the company could add more recurring revenue service generating accounts.

我們的目標是讓 prima 滿足安全市場的重要大眾需求，包括住宅和小型企業系統，內建 WiFi 和蜂窩無線電通訊、客戶警報通知以及每個已安裝系統的視訊和智慧家庭訂閱選項。證券經銷商和公司可以增加更多的經常性收入服務產生帳戶。

Prema now offers a full set of necessary peripherals to go along with the Prima kit. We believe this will help enhance prema sales in the future.

Prema 現在提供全套必要的周邊設備來配合 Prima 套件。我們相信這將有助於提高 Prema 未來的銷售。

Our strong net income and growing cash balance indicate the financial strength of our business as such. We are pleased to continue our dividend program with a payout of 12.5¢ per share. This will be payable on 13 2025 to shareholders of record on 12-12-24.

我們強勁的淨利潤和不斷增長的現金餘額表明我們業務的財務實力。我們很高興繼續實施每股 12.5 美分的股息計劃。該款項將於 2025 年 13 日支付給 24 日 12 日登記在冊的股東。

In addition, as announced in this morning's earnings release, our board has authorized the company to opportunistically repurchase up to an additional 1 million shares of our common stock. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technical superiority, and strong profitability for fiscal 2025 and beyond.

此外，正如今天早上的財報中所宣布的，我們的董事會已授權公司趁機回購最多 100 萬股普通股。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。

I'd like to thank everyone for their support and for joining us in this, in this exciting future. We have our formal remarks are now concluded and we would 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，我們想開始徵求問答環節操作員。請繼續。

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question? Please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the following process? Please press the start followed by the number two. If you are using speaker phone. Please lift the handset before pressing any keys. One moment, please. For your first question, your first question comes from Matt Summerville of D A Davidson. Please go ahead.

謝謝你們，女士們、先生們。我們現在開始問答環節。你應該有一個問題嗎？請按您的按鍵式電話上的星號，然後再按數字 1。您將聽到提示音，表示您已舉手。您是否希望拒絕以下流程？請按開始鍵，然後按數字 2。如果您使用免持電話。按下任何按鍵之前請先拿起聽筒。請稍等一下。對於你的第一個問題，你的第一個問題來自 D A Davidson 的 Matt Summerville。請繼續。

Now, are you on mute?

現在，你靜音了嗎？

Can you hear? Can you hear me?

你聽得到嗎？你聽得到我嗎？

Okay.

好的。

Alright. Yes, sorry. Maybe I was on mute. I apologize. So anyways, Kevin, in your prepared remarks, you mentioned several distributors temporarily lowering locking hardware inventory and that this situation is different than the multi quarter trend you saw on the radio side help us understand why this is different and whether or not you think you can grow equipment revenues for the full year. And then I have a follow up.

好吧。是的，抱歉。也許我處於靜音狀態。我道歉。所以無論如何，凱文，在您準備好的演講中，您提到了幾家分銷商暫時降低了鎖定硬體庫存，這種情況與您在無線電方面看到的多季度趨勢不同，幫助我們理解為什麼這種不同以及您是否認為您可以增加全年的設備收入。然後我有一個後續行動。

So with radios, we were coming off of the three G sunset where all the distributors were loading up because they couldn't get radio deliveries from anybody except us and they had to be prepared for the sunset.

因此，對於收音機而言，我們正處於 3G 日落時期，所有經銷商都在加載，因為除了我們之外，他們無法從任何人那裡獲得無線電傳輸，他們必須為日落做好準備。

So we saw all of our distributors having a lot of inventory and then when the sunset came and went, they had too much and we knew it was going to take several quarters for it to work its way through.

因此，我們看到所有經銷商都有大量庫存，然後當日落來臨時，他們的庫存太多了，我們知道需要幾個季度才能完成庫存。

And that's what happened. It took several quarters and now we could say we're finished with that based on the very strong radio sales we saw in this quarter with locking, it's much different. We can see from their inventory levels, we can see from the sell through. This is a much different situation.

這就是發生的事情。這花了幾個季度的時間，現在我們可以說我們已經完成了，基於我們在本季度看到的非常強勁的收音機銷售鎖定，它有很大的不同。我們可以從他們的庫存水準看出，我們可以從銷售情況看出。這是一個非常不同的情況。

They wanted to slow up in this quarter. Why it's hard to say, is it the election? I heard that from a few of the distributors. You want to wait till the election, then we'll start buying again. I heard that from some it was budget related.

他們希望在本季放慢速度。為什麼很難說，是選舉嗎？我從一些經銷商那裡聽到了這樣的說法。你想等到選舉，然後我們再開始購買。我從一些人那裡聽說這與預算有關。

They want to wait till the new budget period because a lot of the projects start with October 1 budget period. I talked to several of them personally and they assured me that it was a one quarter type event.

他們想等到新的預算期，因為很多專案都是從 10 月 1 日預算期間開始的。我親自與他們中的幾位進行了交談，他們向我保證這是一個四分之一類型的活動。

That's what I'm going by locking is strong. It comes from a lot of different avenues, schools. There's a lot of school activity. We're hopeful to announce a school when later this week, stay tuned. This bunch of hospital upgrade projects we're working on so we feel good about it. Don't take what happened in one quarter as being the new norm. That's how we feel. So we think we'll grow as the year progresses. This is just one quarter. Even with this, even with the disappointment of the locking, we still earned over $11 million still 25% net income as a percentage of sales, it'll come back over the next coming quarters. That's what we believe.

這就是我要透過鎖定來實現的目的。它來自很多不同的途徑、學校。學校活動很多。我們希望在本週晚些時候宣布一所學校，敬請期待。我們正在進行這一系列醫院升級項目，因此我們對此感覺良好。不要將一個季度發生的事情視為新常態。這就是我們的感受。所以我們認為我們會隨著時間的推移而成長。這只是四分之一。即便如此，即使鎖定令人失望，我們仍然賺取了超過 1100 萬美元的淨利潤，佔銷售額的百分比仍然為 25%，它將在接下來的幾個季度中恢復。這就是我們所相信的。

And then it is a follow up, Kevin, can you maybe talk about you guys talk about the magnitude of promotional activity that occurred in the quarter to drive that kind of growth in radios and whether or not you expect maybe not ultimately in percentage terms. But do you expect further growth in radios as the year goes on compared to the prior year period?

然後是後續行動，凱文，您能否談談本季度為推動收音機的這種增長而進行的促銷活動的規模，以及您是否預計最終可能不會以百分比形式表示。但您預計隨著時間的推移，與去年同期相比，收音機的銷量會進一步成長嗎？

Thank you.

謝謝。

So, radios, the radio sales declining was something that bothered us. You, we talked about it for several quarters. Yeah, it was because of heavy inventory levels, but we felt we could do more to enhance our radio sales.

所以，收音機，收音機銷售量下降是讓我們困擾的事情。你，我們已經討論了好幾個季度了。是的，這是因為庫存水準很高，但我們覺得我們可以採取更多措施來提高收音機銷售量。

And we actively promoted the radios in words, we put out what they call beat sheets, showing our radio compared to the competition, showing the differences where we come up way ahead of our competitors.

我們積極地用文字宣傳收音機，我們推出了他們所謂的節拍表，展示我們的收音機與競爭對手的比較，顯示我們遠遠領先於競爭對手的差異。

That would made a big difference. We made some management changes within the division that sells the radios very happy with that change.

這將會產生很大的不同。我們在收音機銷售部門內進行了一些管理變革，我們對這項變化感到非常滿意。

So we did a lot of things behind the scenes to get the radio sales to come back to where they should be.

因此，我們在幕後做了很多事情，以使收音機銷售回到應有的水平。

And so the, the what we saw this quarter far exceeded what I even thought. I knew it was coming back. I knew we had worked through the distribution levels of inventory. This was even beyond, we have to keep it going. We know how important this is. We're not going to see an immediate hit increase to recurring revenue as a result of these higher sales takes a little time. You sell to a distributor, it sits with the distributor for a month or so. Then he sells it to the dealer, then the dealer activates it and then there's usually a promotion where they get X dollars of free recurring, might be a few months, 34 months of free recurring, then it kicks in. But the main thing is to see the level that we saw this quarter. That means in the future, this is going to only get better and we're going to keep it going. We're focused and coming out with new features within the radios, which if you come to Isc East, you'll see that too.

因此，我們本季看到的遠遠超出了我的想像。我知道它會回來。我知道我們已經確定了庫存的分配水準。這甚至超出了，我們必須繼續下去。我們知道這有多重要。我們不會看到經常性收入立即增加，因為銷售額的增加需要一點時間。你把產品賣給經銷商，它會在經銷商保存一個月左右。然後他把它賣給經銷商，然後經銷商啟動它，然後通常會有促銷活動，他們可以獲得X 美元的免費經常性，可能是幾個月，34 個月的免費經常性，然後它就開始了。但最重要的是看看我們本季看到的水平。這意味著在未來，這只會變得更好，我們將繼續下去。我們專注於在收音機中推出新功能，如果您來到 Isc East，您也會看到這一點。

Please go on.

請繼續。

Thank you, man.

謝謝你，夥計。

Your next question comes from Jim Rishidi of Nedham. Please go ahead.

您的下一個問題來自 Nedham 的 Jim Rishidi。請繼續。

Thanks. So Kevin, I do want to go back to the, the locking business. You know, where are we though? You know, what gives you the assurance that the distributors, It's going to be a one quarter phenomenon just basically what, what they're telling you. I know it's different. But, you know, it, it obviously we've heard of inventory corrections before and it takes a little bit more than a quarter. I mean, how confident are you? Have you spoken to it? Not just the distributors? And by the way, are these the same distributors that are carrying your radios or are these different players.

謝謝。所以凱文，我確實想回到鎖定業務。你知道，我們在哪裡？你知道，是什麼讓你確信分銷商，這將是一個季度的現象，基本上就是他們告訴你的。我知道這是不同的。但是，你知道，顯然我們之前聽說過庫存調整，而且需要一個多季度的時間。我的意思是，你有多少信心？你跟它說過話嗎？不只是經銷商？順便說一句，這些是為您的收音機提供相同的經銷商還是不同的播放器。

In some cases? It's the same in some cases it's not.

在某些情況下？在某些情況下是一樣的，但事實並非如此。

And I spoke to our largest distributor of locking products, the largest one that's not the same. They don't distribute radios, they're locking guys, spoke to the President.

我與我們最大的鎖具產品經銷商進行了交談，最大的經銷商並不相同。他們不分發無線電，他們鎖定人員，與總統交談。

We spoke at length.

我們談得很長。

He assured me this is just a temporary one quarter event.

他向我保證這只是一個臨時的季度活動。

I said to him, what is this? The election? What does the election have to do with it? He said, look, I just want to say it's one quarter and we'll be back next quarter. So I'm banking on it based on conversations from him.

我對他說，這是什麼？選舉？選舉與這有什麼關係？他說，聽著，我只想說這已經是一個季度了，我們下個季度就會回來。所以我根據他的談話來指望它。

Other things I'm banking on is I see the stats, I see the sell through stats. I see their inventory level.

我所依賴的其他事情是我看到統計數據，我看到銷售統計數據。我看到他們的庫存水準。

There's no reason why it shouldn't come back.

沒有理由不回來。

The only differential you have is there are special projects within locking.

唯一的區別是鎖定中有特殊項目。

We had a big project that went on last year.

去年我們有一個大項目正在進行。

The Waldorf Astoria project that happened throughout fiscal 2024. It's somewhat still in 2025.

華爾道夫酒店專案在 2024 財政年度進行。2025 年還有些靜止。

So that makes for a difficult comp but there are other projects that are going on this year.

因此，這使得比賽變得困難，但今年還有其他項目正在進行中。

There'll be a school security announcement and there's some other things. So as we get those special projects this year and the distributors go back to what they were doing. That's how you get the confidence that locking will be very good this year.

會有學校安全公告和其他一些事情。因此，當我們今年獲得這些特殊項目時，發行商就會回到他們正在做的事情上。這就是你如何確信今年鎖定會非常好。

Okay. How much of a catalyst to the radio sales was the new distributor that you added over the past year? You know, and how would you, how would the position of the other two distributors?

好的。去年你們增加的新經銷商對收音機銷售有多大的促進作用？你知道，你會如何，其他兩個經銷商的地位如何？

I'd say our top two, the new one that we added, plus our other one. Who's, who's our biggest one? Those two I would say were the biggest catalyst but we saw it across the board.

我想說的是我們的前兩個，我們增加的新一個，加上我們的另一個。誰，誰是我們最大的？我想說這兩個是最大的催化劑，但我們全面地看到了這一點。

Once you work through the inventory, we, there was one distributor left heading into Q1.

一旦你清查了庫存，我們就只剩下一個經銷商進入第一季了。

We even saw growth from him. So I'd say we saw it pretty much across the board and we saw a lot of fire.

我們甚至看到了他的成長。所以我想說，我們幾乎全面地看到了這一點，我們看到了很多火災。

You know, we've talked about this a lot. We love the fire radio. It's the most profitable one.

你知道，我們已經討論過很多次了。我們喜歡消防收音機。這是最賺錢的。

It's probably two thirds of our active radios and we saw that pattern within the radios. We sold this quarter.

這可能是我們活動無線電的三分之二，我們在無線電中看到了這種模式。我們本季出售了。

So it wasn't just one distributor. It was more than one. It was right down the line. The hope is it continues again this quarter.

所以這不僅僅是一位經銷商。不只一個。就在這條線上。希望這種情況在本季再次持續下去。

Thanks. I'll jump back in the queue.

謝謝。我會跳回到隊列中。

Thank you, Jim.

謝謝你，吉姆。

Your next question comes from Lance Vitanza of TD Cowen. Please go ahead.

您的下一個問題來自 TD Cowen 的 Lance Vitanza。請繼續。

Thanks for taking the questions. I have two the first just to sort of stay on the theme of the uptick in radio sales. I'm interested in how this the composition of sales that you're seeing in terms of the rebound.

感謝您提出問題。我先講兩個，只是為了停留在收音機銷售上升的主題。我感興趣的是您所看到的銷售組成如何反彈。

And I, I heard what you just said, you know, fire versus BRG, but how do you expect that's going to impact service revenues and services gross margin going forward. And here, I'm, I'm thinking, you know, back half of this fiscal year and, and fiscal '26 just based on the trends that you're seeing to date.

我，我聽到了您剛才所說的，您知道，Fire 與 BRG 的比較，但是您預計這將如何影響未來的服務收入和服務毛利率。在這裡，我想，你知道，本財年的後半段以及 26 財年只是基於你迄今為止看到的趨勢。

Right? So as we said, you get strong radio hardware sales, you don't feel the impact immediately in the recurring, but you will feel it again. It takes a little time, I always say, should sit on a distributor's shelf for about a month, maybe a little more a month and a half after that goes to the dealer, dealer activates it right away. He's not interested in keeping inventory on his shelf. They usually, they get it so they could do installations.

正確的？因此，正如我們所說，您獲得了強勁的無線電硬體銷售，您不會立即感受到週期性的影響，但您會再次感受到它。我總是說，這需要一點時間，應該在經銷商的貨架上放置大約一個月，也許一個半月多一點，然後到達經銷商處，經銷商立即啟動它。他對在貨架上保留庫存不感興趣。他們通常會得到它以便進行安裝。

So the process is pretty quick and then there's usually some sort of rebate, maybe $50 some amount which it adds up to several months of free recurring. After that, you feel it, that means back end of this fiscal year, we start to feel it.

所以這個過程非常快，然後通常會有某種回扣，可能是 50 美元，加起來就是幾個月的免費經常性。之後，你會感覺到，這意味著在本財年結束時，我們開始感覺到。

And of course, we want to, we want to have another quarter like that in Q2 and the same thing, we'll feel that in Q4. So we just have to keep it rolling. We're being very aggressive getting the word out of why our radios are better than the competition.

當然，我們希望，我們希望再有一個像第二季度那樣的季度，同樣的事情，我們會在第四季度感受到這一點。所以我們只需要繼續下去。我們非常積極地宣傳為什麼我們的收音機比競爭對手更好。

And I think again, if you go to ISC show, you will see the difference between hours and the competition and it'll make sense why we believe the power of these radios is going to continue and get even better.

我再次認為，如果您參加 ISC 展會，您會看到時間和競爭之間的差異，這就會理解為什麼我們相信這些收音機的力量將繼續下去並變得更好。

We keep adding more and more new radios and new products with you which use these radios within. And you're going to see that at the International Security Conference. So it's not like we're standing still with the line of radios that we have the radio line is developing and it's very exciting for the dealers because it's the way they're getting communications from the, account that they put the alarm in to their sent to the dealer central station. And it's the best radio out there. It's acknowledged as the best. And it's multiple radios for different applications. So it'll keep contributing lots of recurring revenue as far as the future as we can see. And the introduction of a new product, which is a locking product and access product which we call MVP will also generate a lot of recurring revenue for us over the years as it becomes a standard in the industry. It's unique and very special and we're excited about it.

我們不斷為您添加越來越多的新收音機和使用這些收音機的新產品。你將在國際安全會議上看到這一點。因此，我們並不是停滯不前地開發無線電產品線，我們正在開發無線電產品線，這對經銷商來說非常令人興奮，因為這是他們從將警報放入其帳戶的帳戶中獲取通信的方式。這是最好的收音機。它被公認為是最好的。它是針對不同應用的多個無線電。因此，就我們所見的未來而言，它將繼續貢獻大量經常性收入。新產品的推出，即我們稱之為 MVP 的鎖定產品和訪問產品，隨著它成為行業標準，多年來也將為我們帶來大量經常性收入。它是獨一無二的，非常特別，我們對此感到興奮。

That's great. Thanks. I guess what I was trying to get at was the, the radio sales in the quarter and that you're expecting going forward are those attaching at a higher or lower monthly recurring revenue per unit or, or about the same as, as the existing net, you know, the existing fleet of devices that you have out in the field.

那太棒了。謝謝。我想我想了解的是，本季的收音機銷售情況以及您期望的未來是那些以更高或更低的每單位每月經常性收入附加的銷售，或者與現有的銷售收入大致相同的銷售。

You know, fire gets more than the, than the bird and this was a very fire heavy radio quarter.

你知道，火比鳥更容易燃燒，這是一個非常火的無線電區。

So while the amounts per radio might be the same, the mix is actually even a little better and the mix has been getting better and better, better and better meeting more fire. It was actually even better this quarter that could Bode, well, for higher margins, you know, we'll see we're at 91. Maybe we go beyond that. I don't know yet, but we love fire. That's the best. And we saw a lot of it in Q1.

因此，雖然每個收音機的數量可能相同，但混音實際上甚至更好一點，而且混音已經變得越來越好，越來越好，遇到了更多的火。事實上，本季情況甚至更好，博德，嗯，為了更高的利潤率，你知道，我們會看到我們在 91。也許我們超越了這一點。我還不知道，但我們喜歡火。那是最好的。我們在第一季看到了很多這樣的情況。

Okay, great. Thanks guys.

好的，太好了。謝謝你們。

Excellent.

出色的。

As a reminder. If you wish to ask a question, please press star one.

作為提醒。如果您想提問，請按星號一。

Your next question comes from Jeremy Hublin of Craig Holland Capital Group. Please go ahead.

您的下一個問題來自 Craig Holland Capital Group 的 Jeremy Hublin。請繼續。

Thanks for taking the questions. And I just wanted to follow up on the, the, the last point. So, and it, it sounds like you're getting a little bit higher monthly, you know, subscription fee, on, on the fire. I wanted to just understand in terms of the support service, costs, you know, of, of fire vses the BRG. It are the margins just, you know, flat out. They're, they're better because the support cost is a little lower or similar support costs. And, and again, you're starting to see that ASP the monthly fee, driving higher.

感謝您提出問題。我只想跟進最後一點。所以，聽起來你每個月的訂閱費用都在漲一點，你知道，火上加油。我只想了解消防與 BRG 的支援服務、成本。你知道，這只是利潤。他們是，他們更好，因為支援成本稍低或相似的支援成本。而且，您再次開始看到 ASP 月費不斷上漲。

Similar support costs, minimal support costs are minutes.

類似的支援成本，最小的支援成本是分鐘。

We buy minutes from the carriers.

我們從運營商購買分鐘數。

That's the cost.

這就是成本。

So the minutes are inconsequential. They're not, it's not a lot. It's more for fire than it might be for BRG. A fire radio has to check in electronically, do an electronic handshake. It uses minutes to do that to show that it's working. So it'll be more than a burglary radio. But in the big picture not a lot. The amount we get for a fire radio exceeds the amount we get for a bird radio by more than whatever the differential is in the cost. So that's why we love the fire. It's just super profitable. And I believe we just have such a better offering than the competition. It's not even close. So, and again, if you go to ISC, you'll see that, but that's why we get more, we get better margins.

所以，會議紀要並不重要。他們不是，數量並不多。與 BRG 相比，它更適合火。消防無線電必須以電子方式登記，進行電子握手。它花了幾分鐘的時間來證明它正在工作。所以它不僅僅是一個防盜收音機。但從大的角度來看，並不是很多。我們購買消防收音機的價格比購買鳥類收音機的價格高出許多，無論價格有何差異。這就是我們熱愛火的原因。簡直就是超級賺錢。我相信我們提供的產品比競爭對手更好。還差得很遠。所以，再說一次，如果你去 ISC，你會看到這一點，但這就是為什麼我們得到更多，我們獲得更好的利潤。

And realize that, once the radio is put into a commercial building for reporting the commercial fire alarm, situation to the central station, the dealer. So, if the dealer can dispatch a fire department, it's something that is basically in, for the lifetime of the building because of the fact that you have to keep the fire alarm system working and communicating because it's inspected by the fire marshal on a regular basis to make sure it's com, it's communicating. So, we have a big push into the fire to keep the fire jobs going. There's millions and millions of buildings that still have to be retooled as the copper is going bad. It's breaking, it's cracking. And the phone companies are not repairing it. We become the replacement for the phone companies with that though. That's, it's a sale that keeps on giving for both the dealer and for us.

並認識到，一旦將收音機放入商業建築中，用於向中心站、經銷商報告商業火災警報、情況。因此，如果經銷商可以派遣消防隊，那麼這基本上是在建築物的整個生命週期內的事情，因為您必須保持火災警報系統正常工作和通信，因為消防隊長會定期檢查它基礎以確保它是com的，它正在通信。因此，我們大力推進火勢，以確保消防工作持續進行。由於銅質正在惡化，仍有數百萬的建築物需要重新裝修。它正在破裂，它正在破裂。電話公司也不修理它。儘管如此，我們還是成為了電話公司的替代者。也就是說，這是對經銷商和我們來說都持續有利的銷售。

Just as a follow up question on the, the, the minutes that you're buying from carriers. Are, are you seeing inflate, I mean, there's inflation across a number of line items. You noted. Insurance is one of them. But you know, in terms of, of the, the minutes that you're buying from carriers. Are you seeing any inflationary pressure there?

就像關於您從運營商購買的分鐘的後續問題一樣。你是否看到通貨膨脹，我的意思是，許多訂單項目都存在通貨膨脹。你注意到了。保險就是其中之一。但您知道，就您從運營商購買的分鐘數而言。您認為那裡有通膨壓力嗎？

No, we, what do we do competitive bidding with the different carriers? So the prices are not going up for us. We're buying more and more minutes as more and more radios are added to the system, more and more and more control panels with radios and we all so make a line of two or three other styles of radios. One is basic intrusion, one is home automation, we make these different radios, so we're buying more and more minutes and all the carriers want us to buy minutes. That's what they sell to us. So we don't see the prices going up.

不，我們，我們如何與不同的業者進行競爭性招標？所以我們的價格不會上漲。隨著越來越多的收音機添加到系統中，越來越多的帶有收音機的控制面板，我們正在購買越來越多的分鐘，因此我們都製作了兩到三種其他樣式的收音機。一種是基本入侵，一種是家庭自動化，我們製造這些不同的無線電，所以我們購買越來越多的分鐘，所有運營商都希望我們購買分鐘。這就是他們賣給我們的東西。所以我們看不到價格上漲。

Got it. Last one for me just as, as we look a little bit further ahead and, you know, the kind of what you're driving towards for FY26. And previously you talked about your mix of business, you know, hoping to achieve 50-50 you know, equipment revs to, you know, service revs in that fiscal year. You're, you're getting close to that 50% already. You know, and it sounds like quite a bit of momentum in the radio portion of your business. Is there, is there a potential for the service revenues to exceed equipment, you know, revs on a go forward basis and, and take an even higher portion, particularly if, you know, if the locking part of your business. You know, I, I know that that sounds like it's a one quarter issue but, you know, just in terms of visibility that you have and what that revenue mix might look like, next fiscal year.

知道了。對我來說，最後一個目標就像我們展望未來一點，你知道，你為 2026 財年所努力實現的目標。之前您談到了您的業務組合，希望在該財年實現 50-50 的設備轉速和服務轉速。你已經接近那 50% 了。您知道，這聽起來像是您業務的廣播部分的強勁動力。服務收入是否有可能超過設備，你知道，在未來的基礎上轉速，並且佔據更高的份額，特別是如果，你知道，如果你的業務的鎖定部分。你知道，我，我知道這聽起來像是一個季度的問題，但是，你知道，就你所擁有的可見性以及下一財年的收入組合可能會是什麼樣子而言。

Well, I would say we're pushing the pedal to the metal, both on the recurring revenue radio business and also on the hardware, the locking hardware business, the locking hardware business has been doing fabulously each quarter in the past. So one quarter, speed bump by a couple of distributors not be looked at as indicative of the future, but we expect both the recurring revenue business with new products and locking business with new products and getting more market share in both of those categories will drive us to higher heights than we've been talking about. We're here for the long haul and we got to keep investing in our engineering and our sales and marketing and that's what we're doing. So it's a very exciting future. We love leading the way in the security industry.

好吧，我想說，我們正在全力推動，無論是在經常性收入無線電業務上，還是在硬體、鎖定硬體業務上，鎖定硬體業務在過去每季都表現出色。因此，一個季度，幾個分銷商的成長速度不會被視為未來的指標，但我們預計新產品的經常性收入業務和新產品的鎖定業務以及在這兩個類別中獲得更多的市場份額都將推動我們達到了比我們一直在談論的更高的高度。我們在這裡是為了長期目標，我們必須繼續投資我們的工程、銷售和行銷，這就是我們正在做的事情。所以這是一個非常令人興奮的未來。我們喜歡在安全產業中處於領先地位。

Got it. Thanks for all the color, our best wishes.

知道了。感謝所有的顏色，我們最美好的祝愿。

Thanks.

謝謝。

Your next question comes from Raj Sharma of B Riley. Please go ahead.

您的下一個問題來自 B Riley 的 Raj Sharma。請繼續。

Yeah, hi. Thanks. For taking the questions. I have a question about the radios. You said radios are up strongly up 93% year on year. What else is in the intrusion and the access alarm segment? I I believe it's access controls and Prima. And that's, that is down 42% a year on year. The other part of the the category, how confident are you about the non radio part of intrusion and access alarm's picking up for the rest of the year so that it helps in overall growth in that segment.

是的，嗨。謝謝。為了回答問題。我有一個關於收音機的問題。您說收音機年增 93%。入侵和存取警報段還有什麼？我相信這是存取控制和 Prima。也就是說，年比下降了 42%。在該類別的另一部分，您對今年剩餘時間內入侵和訪問警報的非無線電部分的增長有多大信心，從而有助於該領域的整體增長。

Yeah, pretty confident Raj because Prima was introduced in Q1 of 2024. That was the, that was its coming out party, so to speak.

是的，Raj 非常有信心，因為 Prima 是在 2024 年第一季推出的。可以這麼說，這就是它的亮相派對。

And we had a lot of sales that quarter.

那季度我們的銷售額很高。

But what we did have, we didn't have the peripherals, the accessories and so that kind of stalled the growth as the year progressed.

但我們所擁有的，我們沒有周邊設備、配件，因此隨著時間的推移，這阻礙了成長。

And so when we came to Q1 of 2025 we're just starting to have a full line of accessories.

因此，當我們到 2025 年第一季時，我們才剛開始擁有全系列的配件。

And so when you compared last year, the coming out party of Prima to this year's Q1, it was different, it was down, but because the accessories now are available, we're starting to see an uptick of those sales. And so going forward in the rest of this fiscal year, I think on a comparative basis, I think it'll be up every quarter but it wasn't in Q1 and that's what drove that segment to be down versus a year ago versus where the radios were so amazingly higher than they were a year ago. So it kind of kind of masked it a little bit. That's why we disclosed what the radio part of it was.

因此，當你將去年 Prima 的上市派對與今年第一季進行比較時，會發現情況有所不同，有所下降，但由於配件現已上市，我們開始看到銷量有所上升。因此，在本財年的剩餘時間內，我認為在比較的基礎上，我認為每個季度都會上漲，但不是第一季度，這就是導致該細分市場與一年前相比下降的原因收音機的性能比一年前高得驚人。所以它有點掩蓋了它。這就是為什麼我們披露了它的無線電部分是什麼。

Got it. Yeah, got it. Thank you for that. And then just on the buyback authorization, how, how was the amount of the authorization and how long is it valid till or effective?

知道了。是的，明白了。謝謝你。然後就回購授權而言，授權的方式、金額是多少，有效期限是多久？

Right. So we had, we bought back, I think it was 193,000 shares in this past quarter, we had to stop and we hit the quiet period and there was 387,000 shares left from this prior authorization.

正確的。所以我們回購了，我認為上個季度有 193,000 股，我們不得不停下來，我們進入了安靜期，之前的授權還剩下 387,000 股。

And so we wanted to make sure we had more than that to potentially opportunistically buy back. So we with the authorization of the board added a million to that you have a million plus the 387,388 that we had before. So basically, there's 1.4 million available for buyback.

因此，我們希望確保我們有更多的資金可以機會性地回購。因此，我們在董事會的授權下，在您擁有的 100 萬加上我們之前擁有的 387,388 的基礎上增加了 100 萬。所以基本上，有 140 萬可用於回購。

There is no time limit on it. The only thing is we will not buy back during quiet periods again. Last quarter, we bought back 193,000 shares. We spent $7.2 million. So we'll see how it goes.

沒有時間限制。唯一的問題是我們不會再在淡季回購。上季度，我們回購了 193,000 股。我們花了 720 萬美元。所以我們會看看事情進展如何。

We watch it close. If it makes sense, we're going to do it. That's why we added the million shares.

我們近距離觀察。如果有意義，我們就會這麼做。這就是我們增加 100 萬股的原因。

Got it.

知道了。

Thank.

感謝。

You for answering. Questions. I'll take it offline though.

你來回答。問題。不過我會把它離線。

Thanks, Raj.

謝謝，拉吉。

Your next question comes from Jim Rishidhi of Needham. Please go ahead.

你的下一個問題來自尼達姆的吉姆·里希迪（Jim Rishidhi）。請繼續。

And I just wanted to follow up. You know, I know there's a lot of noise with respect to the distributors and inventories. But remind us again of the seasonality on both parts of the business. As we look at Q2 and the fiscal second half.

我只是想跟進。你知道，我知道關於經銷商和庫存有很多噪音。但再次提醒我們這兩個業務部門的季節性。當我們看看第二季和下半財年。

Our, our quarters historically get stronger with Q1 being the weakest Q4 being the strongest.

從歷史上看，我們的季度會變得更加強勁，第一季是最弱的，第四季是最強的。

That that's one aspect of seasonality.

這是季節性的一方面。

Also the school business, it used to be very seasonal where the schools would only want to do jobs when the kids were out of school.

還有學校業務，過去季節性很強，學校只想在孩子放學時做工作。

And what that means is they want to do jobs in the summer or they want to do jobs in December, January during the winter recess that's really changed.

這意味著他們想在夏天工作，或者他們想在 12 月、1 月寒假期間工作，這確實發生了變化。

There's no real seasonality to that, but it there are, it is affected by budgets.

這並沒有真正的季節性，但它確實存在，它受到預算的影響。

So a lot of the fiscal budgets start October 1st and they won't, we won't, we won't see projects until the budget of October 1st starts.

所以很多財政預算從 10 月 1 日開始，他們不會，我們不會，直到 10 月 1 日預算開始才看到專案。

So I think budgeting more than quote, seasonality has something to do with it.

所以我認為預算比報價更重要，季節性與此有關。

But again, our quarters typically get stronger as the year progresses. So two is usually better than 13 is better than two and four is usually better than three. That's historically what we've seen.

但同樣，隨著時間的推移，我們的季度通常會變得更加強勁。因此，2 通常比 13 好於 2，4 通常比 3 好。這就是我們在歷史上所看到的。

In both parts of the business it sounds like. Yeah.

在業務的兩個部分聽起來都是如此。是的。

Actually, actually with, with, with radios, radios, radios just should happen all year. I don't think that's affected by this when radios are strong. Just get it all year round. That's how it should be.

事實上，實際上，用、用、用收音機、收音機、收音機應該全年都會發生。我認為當無線電訊號很強時，這不會受到影響。一年四季都可以得到它。事情應該是這樣的。

Got it. How satisfied are you with Prima? In terms of whether it's meeting your expectations or, you know, ramping a bit more slowly, just, you know, given that it's a new area for you.

知道了。您對 Prima 的滿意度如何？至於它是否滿足你的期望，或者，你知道，成長得慢一點，只是，你知道，因為這對你來說是一個新領域。

We want to be a major contributor and we still think it will be the misstep if you will was that you can't really have a product that doesn't have a full complement of accessories and expect it to be successful when a dealer is putting in a job, he needs the full, he needs the full set.

我們希望成為一個主要的貢獻者，我們仍然認為，如果您願意的話，這將是一個錯誤，您不能真正擁有一個沒有全套配件的產品，並期望當經銷商投入使用時它會取得成功在工作中，他需要全套，他需要全套。

He can't put in a system, but he doesn't have doorbells. He's gotta have the doorbells, he's gotta have the right transmitter, he's gotta have the right sir, of whatever it is.

他無法安裝系統，但他沒有門鈴。他必須有門鈴，他必須有正確的發射器，他必須有正確的先生，無論是什麼。

And so we introduced it quick, maybe too quick in retrospect, but now all of the accessories are there.

所以我們很快就推出了它，也許現在回想起來太快了，但現在所有的配件都在那裡。

So it's time for it to perform.

所以是時候讓它發揮作用了。

And so our expectations is it's going to do much better in this fiscal year.

因此，我們的期望是它在本財年會表現得更好。

And we were starting to see the results of that towards the back end of Q1. So we'll see how it goes. We always say it takes a new product 12 to 18 months to really performing.

我們在第一季末開始看到結果。所以我們會看看事情進展如何。我們總是說新產品需要 12 到 18 個月才能真正發揮作用。

Do well. So we're getting to that point with Prima.

做得好。所以我們在 Prima 上就達到了這一點。

Thank you.

謝謝。

As a reminder. If you wish to ask a question, please press star one.

作為提醒。如果您想提問，請按星號一。

There are no further questions at this time. Please continue, Mr Kevin Buchel.

目前沒有其他問題。請繼續，凱文·布切爾先生。

So I'm going to turn it to Richard for closing comments.

所以我將把它轉給理查德以結束評論。

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

感謝大家參加今天的電話會議。像往常一樣，您還有其他問題嗎？請隨時致電 Kevin Fran 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 Q2 results. As I said, we'll be at the ISC show at Javits this month and I think it would be wonderful if you would come and see us, we could show you the new products, we're going to show you the products which are going to generate more equipment sales and more reoccurring revenue sales for the company. And you'll be able to talk and see dealers there and get their feeling about the Napco product lines and why Starlinks are the best in the business. So I look forward to welcoming you anybody that wants to come take care and have a wonderful 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 第二季財報。正如我所說，我們本月將參加賈維茨的 ISC 展會，我認為如果您能來參觀我們，那就太好了，我們可以向您展示新產品，我們將向您展示以下產品將為公司帶來更多的設備銷售和更多的經常性收入銷售。您將能夠與那裡的經銷商交談並會面，了解他們對 Napco 產品線的感受以及為什麼 Starlinks 是業內最好的。因此，我期待歡迎任何想要來照顧並度過美好一天的人。

Ladies and gentlemen, this concludes this conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，本次電話會議到此結束。感謝您的參與。您現在可以斷開連線。