NAPCO Security Technologies Inc (NSSC) 2025 Q2 法說會逐字稿

(audio in progress) welcome to the NAPCO Security Technologies fiscal second quarter 2025 earnings conference call. (Operator Instructions)

（音訊正在播放）歡迎參加 NAPCO 安全技術公司 2025 財年第二季財報電話會議。（操作員指令）

This call is being recorded on Monday, February 3, 2025. I would now like to turn the conference over to Francis Okoniewski, Vice President of Investor Relations. Please go ahead.

該通話於 2025 年 2 月 3 日星期一錄製。現在，我想將會議交給投資者關係副總裁 Francis Okoniewski。請繼續。

Thank you, Joanna. Good morning. 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 second quarter 2025.

謝謝你，喬安娜。早安.我是 NAPCO 安全科技公司投資者關係副總裁 Francis Okoniewski。感謝大家參加今天的電話會議，討論我們 2025 財年第二季的財務表現。

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

現在，大家應該都有機會閱讀我們關於討論季度業績的收益新聞稿了。如果您還沒有閱讀，您可以在我們網站 www.napcosecurity.com 的「投資者關係」欄位中取得新聞稿的副本。

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.

今天參加電話會議的有 NAPCO 安全技術公司董事長兼執行長 Dick Soloway；以及總裁、營運長兼財務長 Kevin Buchel。

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，請允許我花一點時間閱讀前瞻性陳述，因為本簡報包含基於當前預期、基於管理層的判斷信念、當前趨勢和預期產品對未來業績的估計預測和預測的前瞻性陳述。表現。

These forward-looking statements include without limitation statements relating to growth, drivers of the company's business, such as school security products, recurring revenue services, potential market opportunities, the benefits of our recurring revenue products to customers and dealers, our ability to control expenses and costs and expected annual run rate for our software as a service, recurring 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（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）有關的陳述以及我們的軟體即服務的成本和預期年運行率，每月經常性收入。

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include but are not limited to such risk factors described in our SEC filings including our annual report on form 10-K 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的結果有重大差異。這些因素包括但不限於我們在美國證券交易委員會文件中描述的風險因素，包括我們10-K 表格年度報告，其他未知或不可預測的因素或基本假設，隨後被證明是不正確的，可能導致實際結果與預期結果有重大差異。

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. All information provided in today's press release in 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.

儘管我們相信前瞻性陳述中反映的預期是合理的，但我們無法保證未來的結果、活動水準、表現或成就。您不應過度依賴這些前瞻性陳述。除非另有說明，本次電話會議中今天的新聞稿中提供的所有資訊均截至今天為止，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 the exciting schedule of investor outreach events lined up in the coming months. On February 12, we're set to participate in a virtual non-deal roadshow with Seaport Global. Later in February, we'll attend the City Global Industrial and Mobility Conference in Miami, Florida in March.

我馬上就把電話轉給迪克。但在此之前，我想先提一下未來幾個月令人興奮的投資人拓展活動行程。2 月 12 日，我們將與 Seaport Global 一起參加虛擬非交易路演。二月下旬，我們將參加三月在佛羅裡達州邁阿密舉行的城市全球工業和交通會議。

Our engagements include the Raymond James 46th Annual Institutional Investors Conference in Orlando, Florida, virtual non-deal roadshow with Wells Fargo and other NND roadshow activity with Robert W. Baird. Finally, we'll cap this busy period by attending our industry's largest trade show, ISC West at the Venetian Expo in Las Vegas from March 31 through April 4.

我們的活動包括在佛羅裡達州奧蘭多舉行的雷蒙詹姆斯第 46 屆年度機構投資者會議、與富國銀行進行的虛擬非交易路演以及與羅伯特·W·貝爾德進行的其他 NND 路演活動。最後，我們將參加 3 月 31 日至 4 月 4 日在拉斯維加斯威尼斯博覽中心舉辦的行業最大貿易展會 ISC West，為這段繁忙的時期畫下圓滿句號。

If anyone is interested in attending this show, please reach out to me and I'll arrange to get you a pass. Investor outreach is a vital part of NAPCO's strategy and I'd like to extend my gratitude to everyone who contributes to the success of these events.

如果有人有興趣參加這次展會，請聯絡我，我會為您安排通行證。投資者拓展是 NAPCO 策略的重要組成部分，我要向所有為這些活動的成功做出貢獻的人表示感謝。

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.

說完這些，我現在把電話轉給 NAPCO 安全技術公司董事長兼執行長 Dick Soloway。迪克，現在你發言。

Thank you Fran. Good morning, everyone, and welcome to our conference call. We appreciate you joining us as we review our fiscal second quarter 2025 performance.

謝謝你，弗蘭。大家早安，歡迎參加我們的電話會議。感謝您與我們一起回顧 2025 財年第二季的業績。

This quarter yielded mixed results. Our recurring revenue increased by 15% which generated a gross margin of 91% and led to a 400-basis-point improvement in total gross margin to 57%.

本季的結果好壞參半。我們的經常性收入增加了 15%，產生了 91% 的毛利率，並使總毛利率提高了 400 個基點，達到 57%。

The reduction of equipment revenue was a result of timing issues with some of our distributors as well as the timing of certain large locking projects. While certain revenue contributions shifted due to external dynamics, our core growth drivers remain intact and demand for our products and services continues to build momentum.

設備收入的減少是由於我們與一些經銷商的時間安排問題以及某些大型鎖定項目的時間安排問題。雖然某些收入貢獻由於外部動態而發生了變化，但我們的核心成長動力仍然完好無損，對我們的產品和服務的需求繼續增強。

Importantly, our innovation pipeline is stronger than ever with new offerings set to launch in the coming months, expanding our recurring revenue opportunities and reinforcing our long-term trajectory as we move forward. We remain confident in our ability to drive sustainable growth and deliver lasting value to our shareholders at Neepco.

重要的是，我們的創新管道比以往任何時候都更加強大，新的產品將在未來幾個月推出，擴大我們的經常性收入機會，並在我們前進的過程中鞏固我們的長期發展軌跡。我們堅信我們有能力推動永續成長並為 Neepco 的股東帶來持久的價值。

A strategic focus is centered on capitalizing on key industry trends, including the expansion of wireless fire and intrusion alarms, the growth of recurring revenue services, advancements in school security solutions enhancements in enterprise access control systems, and continued innovation in architectural locking products.

策略重點集中在利用關鍵產業趨勢，包括無線火災和入侵警報的擴展、經常性收入服務的成長、學校安全解決方案的進步、企業存取控制系統的增強以及建築鎖產品的持續創新。

We remain committed to delivering sustainable growth, maximizing profitability, and driving strong results on equity, all while maintaining disciplined cost management. These priorities are fundamental to our strategy and align with the best interest of our shareholders.

我們將繼續致力於實現永續成長、最大化獲利能力、推動強勁的股權投資業績，同時保持嚴格的成本管理。這些優先事項對於我們的策略至關重要並且符合我們股東的最大利益。

I'll now turn the call over to our President, Chief Operating Officer, Chief Financial Officer, Kevin Buchel, who will provide an overview of our fiscal second quarter 2025 results. After Kevin's remarks, I'll return to discuss our strategies and outlook in more detail.

現在，我將電話轉給我們的總裁、營運長、財務長 Kevin Buchel，他將概述我們 2025 財年第二季的業績。在凱文發表演說之後，我將回來更詳細地討論我們的策略和前景。

Kevin, the floor is yours.

凱文，現在你來發言。

Thank you, Dick. Good morning, everyone.

謝謝你，迪克。大家早安。

Net sales for the quarter decreased 9.7% to $42.9 million, and that compares to $47.5 million for the same period 1 year ago. Net sales for the 6 months ended December 31, 2024, decreased 2.6% to $86.9 million, and that compares to $89.2 million for the same period 1 year ago. Recurring monthly service revenue continued its growth, increasing 15% in Q2 to $21.2 million as compared to $18.5 million for the same period last year.

本季淨銷售額下降 9.7% 至 4,290 萬美元，去年同期為 4,750 萬美元。截至 2024 年 12 月 31 日的 6 個月的淨銷售額下降 2.6% 至 8,690 萬美元，而一年前同期為 8,920 萬美元。每月經常性服務收入持續成長，第二季成長 15% 至 2,120 萬美元，去年同期為 1,850 萬美元。

Recurring monthly service revenue for the 6 months ended December 31, 2024, increased 18% to $42.3 million as compared to $35.8 million last year. Our recurring service revenues now have a positive prospective annual run rate of approximately $86 million based on January 2025 recurring service revenues, and that compares to $85 million based on October '24 recurring service revenues, which we reported back in November.

截至 2024 年 12 月 31 日的 6 個月的每月經常性服務收入與去年的 3,580 萬美元相比增長 18% 至 4,230 萬美元。根據2025 年1 月的經常性服務收入，我們的經常性服務收入現在具有約8600 萬美元的正預期年運行率，而根據我們在11 月報告的24 年10 月的經常性服務收入，則為8500 萬美元。

The increase in net service revenues was due to an increase in our cellular radio communication device activations, particularly fire radios. We expect radio sales to continue to be a key contributor to our equipment sales and to lead to the continued growth of our highly profitable recurring service revenues. Equipment sales for the quarter decreased 25% to $21.7 million as compared to $29 million last year.

淨服務收入的增加是由於我們的蜂窩無線電通訊設備啟動量的增加，特別是消防無線電。我們預計無線電銷售將繼續成為我們設備銷售的主要貢獻者，並推動我們高利潤的經常性服務收入持續成長。本季設備銷售額與去年的 2,900 萬美元相比下降 25% 至 2,170 萬美元。

The decrease in net equipment sales was primarily attributable to reduced sales from two of the company's larger distributors. One of which our largest customer who purchases both intrusion and locking products eliminated all quarter end purchases from all manufacturers in order to reduce their inventory levels for their December 31 year-end.

淨設備銷售額的下降主要歸因於公司兩家較大經銷商的銷售額下降。我們最大的客戶之一同時購買入侵和鎖定產品，為了降低 12 月 31 日年末的庫存水平，該客戶取消了所有製造商的所有季度末採購。

This distributor I spoke to personally, and he said, it's like an old Seinfeld Line. He said it's not you; it's us. So it's a decision they made, had nothing to do with our product. Our sell-through was good, the corporate decision they made, and the other one because there was another distributor who was going through a management restructuring and that resulted in a significant reduction in their purchase.

我親自和這位經銷商談過，他說，這就像是一部老版的《宋飛正傳》。他說不是你；就是我們。所以這是他們所做的決定，與我們的產品無關。我們的銷售情況很好，這是他們的企業決策，另一個原因是因為另一家經銷商正在進行管理重組，這導致他們的購買量大幅減少。

And in addition to the timing of project work related to a significant New York City building renovation for custom locking products resulted in reduced sales in locking in our Q2 as this project began in fiscal 2024 and it's winding down in fiscal 2025. Equipment sales for the six months decreased 16% to $44.6 million as compared to $53.4 million for the same period, and the decrease was primarily due to the aforementioned reasons I just mentioned.

此外，由於紐約市一項重大建築改造項目的時間安排，客製化鎖具產品也導致我們第二季的鎖具銷售額下降，因為該項目於 2024 財年啟動，並將於 2025 財年結束。六個月的設備銷售額從同期的 5,340 萬美元下降了 16% 至 4,460 萬美元，而下降的主要原因就是我剛才提到的原因。

Gross profit for the three months ended December 31, 2024, decreased 2% to $24.4 million with a gross margin of 57% as compared to $25 million with a gross margin of 53% for the same period last year. The gross profit for the six months increased 4% to $49.1 million with a gross margin of 57% as compared to $47.4 million with a gross margin of 53% a year ago.

截至 2024 年 12 月 31 日的三個月的毛利下降 2% 至 2,440 萬美元，毛利率為 57%，而去年同期的毛利為 2,500 萬美元，毛利率為 53%。六個月的毛利為 4,910 萬美元，毛利率為 57%，而去年同期的毛利為 4,740 萬美元，毛利率為 53%。

Gross profit for recurring service revenue for the quarter increased 16% to $19.4 million with a gross margin of 91%, and that compares to $16.7 million with a gross margin of 90% last year. And gross profit for recurring service revenues for the six months ended December 31, 2024, increased 20% to $38.6 million with a gross margin of 91%, and that compares to $32.2 million with a gross margin of 90% last year.

本季經常性服務收入的毛利成長 16% 至 1,940 萬美元，毛利率為 91%，而去年的毛利為 1,670 萬美元，毛利率為 90%。截至 2024 年 12 月 31 日的六個月內，經常性服務收入的毛利成長 20% 至 3,860 萬美元，毛利率為 91%，而去年的毛利為 3,220 萬美元，毛利率為 90%。

Gross profit for equipment revenues in Q2 decreased by 39% to $5.1 million with a gross margin of 24% as compared to $8.4 million with a gross margin of 29% last year, and gross profit for equipment revenues for the six months decreased 31% to $10.5 million with a gross margin of 24% as compared to $15.2 million with a gross margin of 29% for the same period last year. The 400-basis-point increase in overall gross margin is due to the continued very profitable recurring revenue. The decrease in gross profit and gross margin from equipment sales for both the three and the six months ended December 31, 2024, is primarily the result of the aforementioned lower sales levels as well as lower overhead absorption of fixed costs -- fixed overhead costs from our Dominican Republic manufacturing facility.

第二季設備收入毛利下降 39% 至 510 萬美元，毛利率為 24%，去年同期為 840 萬美元，毛利率為 29%，上半年設備收入毛利下降 31% 至1,050 萬美元，毛利率為24%，去年同期為1,520 萬美元，毛利率為29%。整體毛利率增加400個基點是由於持續的非常有利可圖的經常性收入。截至 2024 年 12 月 31 日的三個月和六個月的設備銷售毛利和毛利率下降，主要是由於上述銷售水準下降以及固定成本的間接吸收減少——固定間接成本來自我們的多明尼加共和國製造工廠。

Research and development costs for the quarter increased 22% to $3.1 million, or 7% of sales, and that compared to $2.5 million, or 5% of sales for the same period a year ago. And research and development costs for the six months ended December 31, 2024, increased 24% to $6.2 million or 7.1% of sales, and that compares to $5 million or 6% of sales for the same period a year ago. The increase in research and development for the three and the six months resulted primarily from annual compensation increases and the hiring of additional engineers.

本季研發成本成長 22%，至 310 萬美元，佔銷售額的 7%，去年同期為 250 萬美元，佔銷售額的 5%。截至 2024 年 12 月 31 日的六個月內，研發成本成長 24%，達到 620 萬美元，佔銷售額的 7.1%，而去年同期為 500 萬美元，佔銷售額的 6%。三個月和六個月的研發費用增加主要源自於年度薪資增加和僱用更多工程師。

Selling, general, and administrative expenses for the quarter increased 18% to $10.2 million or 24% of net sales, and that compares to $8.7 million, or 18% of net sales for the same period last year. SG&A expenses for the six months ended December 31, 2024, increased 17% to $19.9 million, or 23% of net sales, and that compares to $17.1 million or 19% of sales for the same period last year. The increases in SG&A for the three and the six months was primarily due to compensation increases, the hiring of additional staff, increases in advertising and insurance costs as partially offset by decreases in professional fees.

本季銷售、一般及管理費用成長 18%，至 1,020 萬美元，佔淨銷售額的 24%，而去年同期為 870 萬美元，佔淨銷售額的 18%。截至 2024 年 12 月 31 日的六個月的銷售、一般及行政費用增長 17% 至 1,990 萬美元，佔淨銷售額的 23%，而去年同期為 1,710 萬美元，佔銷售額的 19%。三個月和六個月的銷售、一般及行政費用的增加主要是由於薪資增加、僱用更多員工、廣告和保險成本增加，但專業費用的減少部分抵消了這些影響。

Operating income for the quarter decreased 19% to $11.2 million as compared to $13.8 million for the same period last year. Operating income for the six months decreased 9% to $23 million as compared to $25.4 million for the same period last year.

本季營業收入為 1,120 萬美元，較去年同期的 1,380 萬美元下降 19%。六個月的營業收入與去年同期的 2,540 萬美元相比下降 9% 至 2,300 萬美元。

Interest and other income for the three months increased 26% to $921,000 as compared to $729,000 last year. And for the six months, increased 75% to $2.1 million compared to $1.2 million last year. The increases for both the three and the six months ended December 31, 2024, was primarily due to increased interest and dividend income from the company's cash and short-term investments as our net cash position continues to grow.

三個月的利息和其他收入從去年的 729,000 美元增加了 26%，達到 921,000 美元。六個月內，與去年的 120 萬美元相比，成長了 75%，達到 210 萬美元。截至 2024 年 12 月 31 日的三個月和六個月的增長主要是由於隨著我們的淨現金狀況持續增長，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 16% $299,000 to $1.6 million with an effective tax rate of 13%, and that compares to $1.9 million with an effective rate of 13% last year. The decrease in the provision for taxes for the three months was primarily due to lower taxable income.

三個月的所得稅準備金減少了 16%，為 299,000 美元，至 160 萬美元，有效稅率為 13%，而去年同期的所得稅準備金為 190 萬美元，有效稅率為 13%。本三個月稅項撥備減少主要是因為應稅收入減少。

For the six months, the provisions remained relatively constant, $3.4 million for both periods this year and last year. The company's effective rate for income tax was 14% and 13% for the six months ended December 31, 2024 and 2023, respectively. The company's effective tax rate for the six months ended December 31, 2024, increased as a result of higher non-deductible stock-based comp.

六個月來，撥備保持相對穩定，今年和去年兩個期間的撥備均為 340 萬美元。截至 2024 年 12 月 31 日及 2023 年 12 月 31 日的六個月，該公司的所得稅實際稅率分別為 14% 及 13%。由於不可扣除的股票薪酬增加，該公司截至 2024 年 12 月 31 日的六個月的有效稅率有所增加。

Net income for the quarter decreased 17% to $10.5 million, and that's 24% of net sales or $0.28 per diluted share, and that compares to $12.6 million or 27% of net sales or $0.34 per diluted share for the same period last year. And net income for the six months decreased 6% to $21.7 million or 25% of net sales or $0.59 per diluted share, and that compares to $23.1 million or 26% of sales or $0.62 per diluted share for the same period last year.

本季淨收入下降 17% 至 1,050 萬美元，佔淨銷售額的 24% 或每股攤薄收益 0.28 美元，而去年同期為 1,260 萬美元，佔淨銷售額的 27% 或每股攤薄收益 0.34 美元。六個月的淨收入下降6% 至2,170 萬美元，佔淨銷售額的25% 或每股攤薄收益0.59 美元，而去年同期為2,310 萬美元，佔銷售額的26% 或每股攤薄收益0.62 美元。

And adjusted EBITDA for the quarter decreased 19% to $12.2 million or $0.33 per share, and that compares to $15.1 million or $0.41 per diluted share for the same period last year. And that equates to an EBITDA margin of 28%, and that compares to 32% last year. And the adjusted EBITDA for the six months decreased 12% to $24.7 million, or $0.67 per diluted share, and that compares to $28 million, or $0.76 per diluted share for the same period last year, and that equates to an adjusted EBITDA margin of 28% this year compared to 31% last year.

本季調整後的 EBITDA 下降 19% 至 1,220 萬美元或每股 0.33 美元，去年同期為 1,510 萬美元或每股 0.41 美元。這相當於 EBITDA 利潤率為 28%，而去年為 32%。六個月的調整後 EBITDA 下降 12% 至 2,470 萬美元，即每股攤薄收益 0.67 美元，而去年同期為 2,800 萬美元，即每股攤薄收益 0.76 美元，這相當於調整後的 EBITDA 利潤率為 28 %，而去年為31%。

Now moving on to the balance sheet. At December 31, 2024, the company had $99.2 million in cash and cash equivalents, other investments, marketable securities, and that compares to $97.7 million as of June 30, 2024. It's a 2% increase, and that's even after paying $22.6 million in dividends and stock repurchases during this six-month period.

現在轉到資產負債表。截至 2024 年 12 月 31 日，該公司擁有現金及現金等價物、其他投資、有價證券 9,920 萬美元，截至 2024 年 6 月 30 日為 9,770 萬美元。即使在這六個月期間支付了 2,260 萬美元的股息和股票回購之後，這一增幅仍為 2%。

The company has no debt, had no debt as of December 31, 2024. Cash provided by operating activities for the three months increased 80% to $13.5 million compared to $7.5 million last year and for the six months increased 37% to $25.5 million, and that compares to $18.7 million for the same period last year. And working capital is defined as current assets less current liabilities, was $143 million at December 31, 2024, and that compares with working capital of $146.5 million on June 30, 2024.

該公司沒有債務，截至2024年12月31日沒有債務。三個月經營活動提供的現金為 1,350 萬美元，較去年同期的 750 萬美元增長 80%；六個月經營活動提供的現金為 2,550 萬美元，較去年同期的 1,870 萬美元增長 37%。營運資本定義為流動資產減去流動負債，截至 2024 年 12 月 31 日為 1.43 億美元，而 2024 年 6 月 30 日的營運資本為 1.465 億美元。

And the current ratio, defined as current assets divided by current liabilities, 7.6:1 at both December 31, 2024, and June 30, 2024. And CapEx for the quarter was $1.1 million compared to $426,000 in the same period last year and for the six months amounted to $1.8 million compared to $682,000 last year.

流動比率（即流動資產除以流動負債）在 2024 年 12 月 31 日和 2024 年 6 月 30 日均為 7.6:1。本季的資本支出為 110 萬美元，而去年同期為 426,000 美元；六個月的資本支出為 180 萬美元，而去年同期為 682,000 美元。

This quarter's investment includes the addition of our second state-of-the-art Panasonic chip shooter machine, which is aimed at further improving our DR production efficiencies.

本季的投資包括增加我們的第二台最先進的松下晶片射擊機，旨在進一步提高我們的 DR 生產效率。

That concludes my formal remarks, and I would 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. As we close out the first half of fiscal 2025 our performance has been a mix of challenges caused by timing issues and stress while we experienced a decline in revenue. NAPCO continues to deliver solid profitability metrics and strong cash flow generation, further enhancing our balance sheet even after continuing our dividend program and opportunistic stock buyback demonstrating the resilience of our business and the effectiveness of our operational strategies.

謝謝你，凱文。當我們結束 2025 財年上半年時，我們的業績面臨著時間問題和壓力帶來的一系列挑戰，同時我們的收入也下滑了。NAPCO 繼續提供穩健的獲利指標和強勁的現金流，即使在繼續我們的股息計劃和機會性股票回購之後也進一步增強了我們的資產負債表，證明了我們業務的彈性和營運策略的有效性。

Despite the decline in locking hardware caused by timing. We haven't lost sight of the significant opportunity for continued growth from spending driven by funded funded governmental infrastructure projects, as well as the millions of dollars going forward. State and federal level programs like Florida's School Hardening Act, Indianas secured school safety grant program and many other states like Texas that have approved hundreds of millions of dollars 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.

儘管鎖定硬體因計時而導致下降。我們並沒有忽視政府資助的基礎設施項目支出以及未來數百萬美元的支出所帶來持續成長的巨大機會。州和聯邦層面的項目，如佛羅裡達州的學校強化法案、印第安納州的學校安全補助計劃，以及德克薩斯州等許多其他州批准數億美元的增加安全資金、安全和醫療保健、零售損失預防以及多方面的住宅商業和住宅應用也提供了成長機會。

We continue to remain focused on further penetrating each of these markets. 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 locking dealer and for NAPCO.

我們將繼續專注於進一步滲透每一個市場。商業鎖定和存取控制的一個新增長機會是期待已久的 MVP 託管存取系統，它可以為安裝鎖定經銷商和 NAPCO 產生大量的硬體銷售和經常性收入。

This new innovative IP technology system enables wireless cloud access for end users of the system introduced initially at the International Security Conference in New York City. Back in November, we will once again be showcasing the new MVP system along with many other new and exciting products at the upcoming International Security Expo in Las Vegas, March 31 to April 4 at the Venetian Expo with tens of thousands of security dealers will see it in action.

這款全新的創新IP技術系統，首次在紐約國際安全會議上推出，為系統的最終用戶實現了無線雲端存取。早在11 月，我們將在即將於3 月31 日至4 月4 日在拉斯維加斯舉行的國際安全博覽會上再次展示新的MVP 系統以及許多其他令人興奮的新產品，屆時數萬名安全經銷商將在威尼斯人展覽會上看到它在行動中。

We're excited about the potential of this technology for new installations as well as retrofit or upgrade of existing locks with, we would ultimately drive increased equipment sales and recurring revenue from these products.

我們對這項技術在新安裝以及現有鎖的改造或升級方面的潛力感到非常興奮，我們最終將推動這些產品的設備銷售成長和經常性收入。

Our recurring revenue growth today is driven by our Starlink radios which alarm dealers value for their extensive coverage across both Verizon and AT&T networks with rich feature capabilities. Starlink continues to be preferred, the preferred choice among our dealers.

我們今天的經常性收入成長是由我們的 Starlink 無線電推動的，警報經銷商看重它，因為它覆蓋 Verizon 和 AT&T 網路的廣泛覆蓋範圍，具有豐富的功能。Starlink 繼續受到青睞，成為我們經銷商的首選。

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

我們的研發團隊正在不斷改進這些高效能無線電，旨在實現簡單的安裝並與所有火災和防盜警報面板相容。我們的和我們的競爭對手都一樣。沒有其他公司可以提供這種程度的多功能性。

Unlike our competitors, our radios are also underwriting a laboratory certified which is the gold standard in our industry.

與我們的競爭對手不同，我們的收音機也經過實驗室認證，這是我們行業的黃金標準。

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

仍有數百萬商業建築和住宅（從辦公室、醫院到學校、咖啡店和餐廳）需要從傳統的銅質電話線過渡到 Starlink 的蜂窩連接。我們已做好充分準備，將在市場上繼續保持強勁成長。

Our latest Starlink Fire MAX 2 communicated for commercial fire and alarm systems includes dual sim technology dynamically using either the Verizon or AT&T networks for optional signal strength. The streamlined solution which dealers love helps simplify their inventory while providing a rich a feature-rich experience. Our recent introduction of 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.

我們最新的 Starlink Fire MAX 2 用於商業火災和警報系統，包括雙卡技術，可動態使用 Verizon 或 AT&T 網路來獲得可選的訊號強度。經銷商喜愛的精簡解決方案有助於簡化他們的庫存，同時提供豐富的功能體驗。我們最近推出了 NAPCO 公司的 Prima，這是一款用於安全安裝和連網家居的新型一體化面板，安裝時間只需 15 分鐘，這仍然是該公司關注的重點。

Our goal is for Prima to address important mass segment of the security market including residential and small business systems with built in WiFi cellular radio communications, customer alert, notifications, and video and smart home subscription options for each installed system.

我們的目標是讓 Prima 滿足安全市場的重要大眾細分市場，包括住宅和小型企業系統，為每個安裝的系統提供內建 WiFi 蜂窩無線電通訊、客戶警報、通知以及視訊和智慧家庭訂閱選項。

The security dealer as well as the company can add more recurring revenue service, revenue generating accounts.

證券經銷商和公司可以增加更多的經常性收入服務，創造收入的帳戶。

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

Prima 現在提供與 Prima 套件配合使用的全套必要外圍設備。我們相信這將有助於提高未來的預售。

Well, we would disappoint our overall equipment sales which we attribute to timing our strong net income and cash flow indicates the continued financial strength of our business. As such, we are pleased to continue our dividend program with a payout of $0.125 per share. This will be payable on 4/3/2025 to shareholders of record on 3/12/2025.

好吧，我們的整體設備銷售可能會令人失望，我們將其歸因於強勁的淨收入和現金流，這表明我們的業務持續保持財務實力。因此，我們很高興繼續我們的股息計劃，每股股息 0.125 美元。該款項將於 2025 年 4 月 3 日支付給 2025 年 3 月 12 日登記在冊的股東。

Also as announced also as announced last quarter, our Board has authorized a share repurchase program allowing us to to strategically buy back NAPCO stock as market conditions warrant. As always, we will strive to accomplish our goal of continued financial strength, product innovation, technological superiority and strong profitability for fiscal 2025 and beyond.

正如上個季度宣布的那樣，我們的董事會已經批准了一項股票回購計劃，允許我們根據市場情況策略性地回購 NAPCO 股票。與往常一樣，我們將努力實現2025財年及以後繼續保持財務實力、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 exciting future. We have our formal remarks are now concluded. We would like to open the call for the Q&A session. Operator, please proceed.

我要感謝大家的支持以及與我們一起共創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, DADavidson.

（操作員指示）Matt Summerville，DADavidson。

Thanks. Can you maybe comment on the number of device activations you saw this quarter relative to the prior quarter and maybe on a year-over-year basis? Just trying to get a feel for with the lower hardware volume this quarter, how that impacted activations. And then I have a follow up.

謝謝。您能否評論一下本季與上一季相比以及與去年同期相比設備啟動的數量？只是想了解本季硬體銷量較低對啟動量有何影響。然後我會進行後續跟進。

Okay. So we don't disclose the pure number met, but the number was greater by about 1,000 activations in December versus November was greater by about 1,000 activations in December versus September and was greater by about 1,000 in December versus June. So the activations, which we believe are going to get stronger because as we've said, is a delay from the time you have strong radio sales. There's a delay because of it being sold to distribution sitting on the distributor's shelf, then it gets activated by the dealer, then there's rebates, there's a delay.

好的。因此，我們不會透露純粹的激活數量，但 12 月份的激活數量比 11 月份多出約 1,000 次，比 9 月份多出約 1,000 次，比 6 月份多出約 1,000 次。因此，我們相信激活將會變得更加強大，因為正如我們所說，這是從廣播銷售強勁開始的延遲。由於產品被賣給分銷商並放在分銷商的貨架上，然後被經銷商激活，然後有回扣，所以存在延遲。

So we haven't seen the strength of last quarter Q1 yet. With all that, the activations were still up by about 1,000. That's the best. And the most I could tell you that.

所以我們還沒有看到上個季度第一季的強勁表現。儘管如此，激活量仍然增加了約 1,000。那是最好的。我能告訴你的最多的就是這些。

Well, that's helpful. I appreciate that. So, with the recurring service revenue, we've seen deceleration now for three quarters in a row, I assume that this quarter's equipment sales imply at least another quarter of deceleration. What do you view as the more steady state growth rate for RSR? And when do we start to see that growth rate accelerate?

嗯，這很有幫助。我很感激。因此，對於經常性服務收入，我們已經連續三個季度看到減速，我認為本季的設備銷售意味著至少另一個季度的減速。您認為 RSR 更穩定的成長率是多少？我們什麼時候會開始看到成長率加速？

So, I think in Q3 quarter that we're now in, we'll see it come down a little more. We were up about 15% this quarter year, over year. I think that that rate of increase will drop a little maybe in the 12%, 12.5% range.

因此，我認為在我們現在所處的第三季度，我們會看到它進一步下降。本季我們的銷售額較去年同期成長了約 15%。我認為成長率會略有下降，可能在 12% 到 12.5% 的範圍內。

Then in Q4, I think it goes up because by Q4, we feel the effects of the strong radio sales that we saw in Q1 last quarter and it will stay up for a bit depending upon what happens in the upcoming quarter. With radio sales, it can stay up the optimal rate given that the number is much higher than it used to be.

然後，在第四季度，我認為它會上升，因為到第四季度，我們會感受到上個季度第一季度強勁的廣播銷售的影響，而且它會保持一段時間的上升，這取決於下一季度的情況。透過廣播銷售，它可以保持最佳比率，因為數量比以前高得多。

We think we should be able to grow this by 20%. At least that is without regard to Prima or MVP. That's separate extra.

我們認為應該能夠將這一數字成長20%。至少這與 Prima 或 MVP 無關。那是另外的額外費用。

I don't want to count that. It's got to prove itself. We think it will, but just with our radios that we're currently selling, we think it'll come back. It'll dip and that'll come back. 20% should be an optimal rate of increase.

我不想算這個。它必須證明自己。我們認為會，但就我們目前銷售的收音機而言，我們認為它會捲土重來。它會下降然後又回來。 20%應該是最佳成長率。

Lance Vitanza, TD Cowen.

蘭斯·維坦扎 (Lance Vitanza)，TD Cowen。

Thanks, guys. A couple more things I wanted to ask you about a couple more things that are probably beyond your control that could impact the numbers in the third quarter and in the second half here. And those two things would be the fires in Los Angeles and Pasadena, number one.

謝謝大家。我還想問您幾個問題，這些問題可能超出了您的控制範圍，但可能會影響第三季和下半年的數據。這兩件事首先是洛杉磯和帕薩迪納的大火。

And then the tariffs or the tariff wars that that seem to be going on right now, just if you could discuss puts and takes from those two items. That would be great. Thanks.

然後是現在似乎正在進行的關稅或關稅戰，如果你可以討論這兩項的利弊的話。那太棒了。謝謝。

I can tell you on the tariff side. The a lot of our competition gets product from China and they get finished product. And all of our product comes from Dominican Republic. We don't fly any components into the US that all goes from around the world into Dominican Republic where it's assembled and it comes in as a finished alarm mower locking product.

我可以告訴你關稅方面的情況。我們的許多競爭對手都從中國購買產品並獲得成品。我們的所有產品都來自多明尼加共和國。我們不透過空運將任何零件運往美國，而是全部從世界各地運往多明尼加共和國進行組裝，然後作為成品警報割草機鎖定產品運抵。

Competition though gets finished products. They make everything in China, most of them both in the locking and all in the intrusion and access business. So I would expect that that 10% is going to make us more competitive in the marketplace and help us win more markets because we have superior products and with the superior pricing, the deal is a price sensitive that should really help us pick up a lot of share. There was some scuttle but about Mexico and I understand they roll that back this morning for 30 days.

但競爭卻獲得了成品。他們在中國生產所有產品，其中大部分是鎖具產品，所有產品都涉及入侵和訪問業務。因此，我預計這10% 將使我們在市場上更具競爭力，並幫助我們贏得更多市場，因為我們擁有優質的產品和優越的定價，這筆交易對價格敏感，應該能真正幫助我們獲得很多的份額。關於墨西哥有一些傳言，據我了解，他們今天早上將該傳言推遲了 30 天。

Some of our major competitors in the intrusion and fire alarm business, make their products in Mexico, all the products in Mexico. So there'll be some settlement but you can be sure that there's going to be tariffs to those Mexican products, which is going to give us ability to also pick up share with dealers because they're cost sensitive.

我們在入侵和火災警報業務中的一些主要競爭對手都在墨西哥生產他們的產品，所有產品都在墨西哥生產。因此會有一些解決方案，但你可以肯定會對這些墨西哥產品徵收關稅，這將使我們能夠從經銷商那裡獲得份額，因為他們對成本敏感。

And in Canada, we have some competition also that makes their control panels up there. So that's going to be kind of like the Mexican situation where it's going to be tariffs. So all in all it should be a benefit for us. The dealers have to keep their installers and salesmen working. So they're going to be going out and keep solutioning jobs and they're going to need merchandise for that. And the owners of those companies are going to say, let's try the NAPCO products.

在加拿大，我們也有一些競爭對手，他們在那裡生產控制面板。所以這將有點像墨西哥的情況，會有關稅。總的來說這對我們是有益的。經銷商必須保證安裝人員和銷售人員繼續工作。所以他們會繼續出去解決問題，而他們需要商品來解決問題。這些公司的老闆會說，讓我們試試看 NAPCO 產品吧。

I've heard a lot of great things about it, and now that the price is so much less expensive, it helps my margins in my business. And that's going to be something that our salesmen are going to be looking to do, bring in all kinds of new market share, new customers and all of our different divisions of locking, access control and fire and burglar alarms. So that's the situation that when it comes to the California fires.

我聽說過很多關於它的好事，而且現在價格便宜了很多，這對我的業務利潤有幫助。這正是我們的銷售人員想要做的事情，帶來各種新的市場份額、新的客戶以及我們所有不同的鎖具、門禁、火災和防盜警報部門。這就是加州火災的情況。

There's going to be rebuilding; it's going to be slower. A lot of it was residential, and as I said, most of our business in the recurring revenue business is from commercial buildings.

將會進行重建；它將變得更慢。其中許多是住宅，正如我所說，我們的經常性收入業務中的大部分業務來自商業建築。

And so we would expect that the deal is be putting in more and more fire alarm systems, more and more protection systems, sprinkler systems with fire communicators. When the fire, when the sprinkler head goes off, the communicator will call the fire department. And I hope they're going to have plenty of water out there. But it's a terrible tragedy would happen.

因此，我們預計該協議將安裝越來越多的火災警報系統、越來越多的保護系統、帶有火災通訊器的灑水系統。當發生火災，噴水噴頭熄火的時候，通訊器就會呼叫消防局。我希望他們那裡有足夠的水。但一場可怕的悲劇卻發生了。

So that's how we look at the situation.

這就是我們看待這一情況的方式。

And very much Lance, we did do Pasadena School district and we also announced Pepperdine. So Pepperdine is right across the street from where all this action is and Pepperdine is going to be doing a lot of dorm work and we, what we had heard is the kids were out of the school for a little bit. I think they're back now. We expect these projects to continue as we go forward.

非常感謝蘭斯，我們確實建立了帕薩迪納學區，也宣布了佩柏戴恩大學。佩柏代因大學就在所有這些活動舉辦地的街對面，佩柏戴恩大學將要做很多宿舍工作，而我們聽說孩子們會暫時離開學校。我想他們現在回來了。我們期望這些項目能夠繼續推進。

Very good. Thanks, guys.

非常好。謝謝大家。

Thanks, Lance.

謝謝，蘭斯。

Jim Ricchiuti, Needham & Company Inc.

Jim Ricchiuti，Needham & Company Inc.

Alright, thank you. I had to jump off momentarily. So apologies if you gave this already, Kevin and I missed it. But did you provide the breakdown of equipment revenue? I know it's going to be in the 10-Q later.

好的，謝謝。我不得不立即跳下去。如果您已經給了我這個，那麼很抱歉，凱文和我都錯過了。但你有沒有提供設備收入的明細？我知道它稍後會出現在 10-Q 中。

Yeah. I can provide it. It will be in the queue which will be out shortly.

是的。我可以提供。它將位於隊列中，很快就會出來。

But the intrusion and access for the quarter was 7.6 million.

但本季的入侵和訪問量達到 760 萬次。

The locking was 14.2 million and the rest was the recurring which was 21.2 million.

鎖定量為 1420 萬，其餘為循環量，為 2120 萬。

Thank you. And it sounds like the shortfall was mainly due to one distributor and obviously to a lesser extent, a second distributor. The question I have is how much variability are you seeing in the sell through among your various distributors? Meaning are we, is this specifically related to one distributor? That's you noted wants to bring down inventory levels or is there some any sign that you're hearing from them about a change in demand? You know, whether it's uncertainty just given the economic impact of some of the things we've been hearing.

謝謝。聽起來，短缺主要是由於一個分銷商造成的，顯然，在較小程度上，還有第二個分銷商。我的問題是，您認為不同經銷商之間的銷售量有多大差異？我們的意思是，這是否與某個經銷商具體相關？您是否注意到他們希望降低庫存水平，或者是否有任何跡象表明他們正在改變需求？您知道，考慮到我們聽到的一些事情對經濟的影響，這是否是不確定性。

Yeah, this distributor, no, there's nothing to do with us. So if I look at their sell through stats their inventory levels, that's not why they decided not to buy this quarter. As I said it earlier in the prepared remarks, this is about them, not about us.

是啊，這個經銷商，不，和我們沒關係。因此，如果我查看他們的銷售統計數據和庫存水平，我會發現這並不是他們決定本季不購買的原因。正如我之前在準備好的演講中所說，這是關於他們的，而不是關於我們的。

So and I've had conversations with them since now we're in the new quarter. They expect to be business as usual with us and with others for whatever the reason, a big conglomerate, they made a corporate decision, maybe they're doing an acquisition, who knows why they made the decision they made.

所以自從我們進入新季度以來，我一直與他們進行對話。無論出於什麼原因，他們都希望與我們以及其他人照常做生意，一個大企業集團，他們做出了一個企業決策，也許他們正在進行收購，誰知道他們為什麼做出這樣的決定。

They're very happy with our products. They buy all our products, they buy the NAFCO intrusion, they buy the alarm clocks, they buy the marks locks super happy with us. And the reason they're happy is because the demand from the locking and the alarm deal is strong.

他們對我們的產品非常滿意。他們購買我們所有的產品，他們購買 NAFCO 入侵產品、他們購買鬧鐘、他們購買標記鎖，他們對我們非常滿意。他們高興的原因是鎖具和警報裝置的需求很強。

That's where the sales really ultimately come from. The, if that demand is strong, their sales will be strong. So they had, they made a decision for the year for their year-end December 31. And this happens every now and then with distribution.

這才是銷量的最終來源。如果需求強勁，他們的銷售就會強勁。所以他們為今年的年度末制定了決定，即 12 月 31 日。這種情況在分銷過程中時常發生。

And the last question for me is just on the topic of operating expense. Just in light of the slower demand that you've seen. Are you making any adjustments to OpEx? I know you've got the big trade show coming up and obviously you're going to be investing in that, but just any thoughts around OpEx going forward?

對我來說，最後一個問題是關於營運費用的。只是考慮到您所看到的需求放緩。您對營運支出 (OpEx) 做了任何調整嗎？我知道你們即將舉辦大型貿易展會，顯然你們將對此進行投資，但你們對未來的營運支出有什麼想法嗎？

No. OpEx will be -- we'll keep doing what we're doing. Nothing that happened in this quarter affects our operation. It's all like we've been saying, timing. So we forge ahead.

不。OpEx 將是 - 我們將繼續做我們正在做的事情。本季發生的任何事情都沒有影響我們的營運。就像我們一直說的，時機就是如此。因此我們繼續前進。

We think we have the right levels of sales people and engineers. But if we need more, we add them, we've added several engineers over the last 12 months. We used to say we have, 55 engineers. We have probably over 70.

我們認為我們擁有適當水準的銷售人員和工程師。但如果我們需要更多工程師，我們就會增加。我們過去常說我們有 55 位工程師。我們可能有超過 70 個。

Now what we're trying to do, get products to market faster. A lot of the products have recurred. We want to get them out in the marketplace sooner. If that means adding some engineers here and there, we could afford it our profitability, our cash flow. It's not an issue for us.

現在我們正在努力做的是，更快地將產品推向市場。很多產品已經復發。我們希望它們能盡快進入市場。如果這意味著到處增加一些工程師，我們就能負擔得起我們的獲利能力和現金流。這對我們來說不是問題。

(Operator Instructions) Jeremy Hamblin, Craig Hallum.

（操作員指示） Jeremy Hamblin、Craig Hallum。

Thanks for taking the question and I wanted to take a step back and ask more of a high-level question. You talked about kind of the push in 2026 towards a goal to get to a 50-50 split on your equipment versus your recurring service revenues and driving that business really to kind of $300 million in total revenues, which would imply $150 million in the RSR. It seems like that's not likely a goal that can be achieved from kind of current levels.

感謝您提出這個問題，我想退一步並提出一個更高層次的問題。您談到了在 2026 年努力實現設備收入與經常性服務收入各佔一半的目標，並將該業務的總收入推高至 3 億美元，這意味著 RSR 為 1.5 億美元。從目前的水平來看，這似乎不太可能實現。

But wanted to get a sense for if you could maybe reframe for us, where you think you could bounce back here. And how we should be looking at the business, given that this is a kind of a second straight quarter in which you've had adjusted EBITDA margins in the 28% range. And kind of with that target that you had laid out before you've been talking about maybe getting adjusted EBITDA margins up towards 40%-plus. And I know that's still, I'm sure the long-term goal. But I wanted to sense for what's a bit more, kind of visibility on where you are with the business today.

但想了解一下您是否可以為我們重新規劃一下，您認為您可以在哪裡反彈。我們應該如何看待這項業務，因為這是連續第二季調整後的 EBITDA 利潤率達到 28% 左右。您先前提出的目標可能是將調整後的 EBITDA 利潤率提高到 40% 以上。我知道這仍然是，我確信這是長期目標。但我想更進一步了解您目前的業務狀況。

Right? So our goal is to get the EBITDA margin the mid-40s. And we were, when we were at 32 you know, we were on our way to it. So now we've taken a step back. We're 28%, still a very strong EBITDA margin, but not our goal. We hit our goal. We need a few things to happen.

正確的？因此我們的目標是使 EBITDA 利潤率達到 45% 左右。當我們 32 歲的時候，你知道，我們已經在通往那個目標的路上了。因此現在我們退後了一步。我們的 EBITDA 利潤率為 28%，仍然非常強勁，但不是我們的目標。我們達到了目標。我們需要發生一些事情。

We need the recurring to continue to grow.I wanted to see it grow in the 20% range, as I said earlier.

我們需要經常性收入來持續成長。

When we originally created the goal, the $150 million, $150 million to 45% EBITDA target, the margin that we used was 80% because that's what it was at the beginning of this recurring revenue journey. Now it's 91%. And could it go higher? Yes, it could. But at 90% and grow it by 20% a year, that's step one.

當我們最初制定目標時，即 1.5 億美元，1.5 億美元到 45% 的 EBITDA 目標，我們使用的利潤率是 80%，因為這就是這段經常性收入旅程開始時的利潤率。現在是 91%。它還能漲更高嗎？是的，可以。但達到 90% 並且每年增長 20% 是第一步。

Step two, we need the equipment, 10% increase. Not what we saw this quarter, not what we saw last quarter. We need about 10%. We don't need anything more dramatic than that, but we need 10%. And we don't need because originally we had margins much higher on the equipment than they're running now. They need to be in the 30s.

第二步，我們需要設備，增加10%。這不是我們本季看到的情況，也不是我們上個季度看到的情況。我們需要大約 10%。我們不需要比這更戲劇性的舉措，但我們需要 10%。我們不需要，因為最初我們的設備利潤比現在高很多。他們必須在30多歲。

If we could get that grow by 10% margins in the 30s, get the recurring to grow 20% 90% margin and keep your OpEx reasonable, grow it by maybe 10% more per year. Then we'll be in the 40s. So I don't know if we'll get there exactly.

如果我們能夠在 30 年代實現 10% 的利潤率成長，使經常性利潤率成長 20% 至 90%，並保持合理的營運支出，那麼每年的成長幅度可能達到 10% 以上。那我們將進入40年代。所以我不知道我們是否能準確地到達那裡。

The original target was the end of 26th, call it 1.5 years from now, but we'll be -- we'll get there. And I want -- and we want to show that we're back, we'll back to being on our way towards that goal and the next couple of quarters I think will give that confidence.

最初的目標是 26 日結束，也就是 1.5 年後，但我們會達成目標。我想要——我們想要表明我們已經回來了，我們將重新回到實現這一目標的道路上，我認為接下來的幾季將為我們帶來這種信心。

Let me ask a follow up question related to the equipment revenues. So to kind of reach these goals, you had had, you know, kind of high-20s in terms of where your equipment revenue run rates had been and that was yielding, nice growth on your service revenues.

讓我問一個與設備收入相關的後續問題。所以為了實現這些目標，您的設備收入運行率已經達到了 20% 以上，服務收入也實現了良好的成長。

In terms of pushing forward to get those gross margins on your equipment revenues, above 30% in kind of vis-a-vis, getting your total company, EBITA margins at least to the mid-30s, let's say, as a starting point, what's the absolute dollar sales that you need or revenues that you need on an equipment, perspective per quarter or on an annualized basis to think that those are reasonable targets to get those, the gross margins for the equipment back up to 30%-plus. So that you can really push forward here on total company EBITDA margin.

為了推動設備收入毛利率達到 30% 以上，使公司整體 EBITA 利潤率至少達到 35% 左右，作為起點，從設備角度看，按季度或按年計算，您需要的絕對美元銷售額或收入是多少，才能認為這些是合理的目標，以使設備的毛利率回到30％ 以上。這樣您就可以真正推動公司整體 EBITDA 利潤率的提高。

I would say it's $30 million hardware is the bare minimum of what we want, not unreasonable last year for three out of the four quarters. That's kind of where we were a little below that d the margins really grow and you get more sales flowing through your offshore factory, our Dominican factory, the more volume we push through it, the better the margins are. We've shown this in the past because when we get busy, we just have to add more direct labor. That's the lowest piece of the cost structure. We have a facility that can handle it.

我想說 3000 萬美元的硬體是我們想要的最低限度，對於去年四個季度中有三個季度而言，這還算合理。這就是我們的水平略低於這個水平的地方，利潤率確實在增長，透過你的海外工廠，也就是我們的多明尼加工廠，你的銷售額會越來越多，我們透過它生產的量越大，利潤率越高。我們過去已經展示了這一點，因為當我們忙碌時，我們只需要增加更多的直接勞動力。這是成本結構中最低的部分。我們有設施可以處理該問題。

We have machinery that could handle it. We just bought another Panasonic chip shooter machine which will give us even more efficiency to get us even better margins.

我們有可以處理該問題的機器。我們剛剛購買了另一台松下晶片射擊機，它將提高我們的效率，從而讓我們獲得更好的利潤。

So you need that volume. And as long as the mix is reasonable, you get there, locking has to be a key part of the mix. It's been that way. Locking has margins in the 35% to 40% range.

所以你需要那個音量。只要混合合理，就可以實現目標，鎖定必須是混合的關鍵部分。一直都是這樣。鎖定的利潤率在35%到40%之間。

We don't care so much about the radio margins, the hardware, it's all about the recurring. So as long as the mix is reasonable, the volume is in the 30-plus, we could be in the 30s. We proved it in the past. It just happens to add more direct labor, nothing else, more overhead absorption margins expand. So we gotta have that.

我們不太關心無線電利潤或硬件，我們只關心重複性。因此，只要混合合理，產量在 30 多，我們就可以達到 30 多。我們過去已經證明了這一點。它只是恰好增加了更多的直接勞動力，沒有別的，更多的間接費用吸收利潤率擴大了。所以我們必須擁有它。

Great. Thanks for taking the question and, and good luck.

偉大的。感謝您回答這個問題，祝您好運。

Thanks, Jeremy.

謝謝，傑里米。

Jason Schmidt, Lake Street.

傑森施密特，湖街。

Hey guys. Thanks for taking my questions. Just curious if you can update us on how the ADI relationship is progressing and if it's progressing to plan.

嘿，大家好。感謝您回答我的問題。我只是好奇您是否可以向我們介紹一下 ADI 關係的進展情況以及是否按照計劃進行。

ADI, doing well, introducing us to more and more dealers as we talked about in the past, they made an intro for us to secure us who now buys our fire radios. We had said maybe it was the last call. I'm not sure.

ADI 做得很好，正如我們過去談到的，他們向我們介紹了越來越多的經銷商，為我們做了介紹，以確保現在誰會購買我們的消防收音機。我們說過這也許是最後一次了。我不知道。

We thought ADI could be a 10% of equipment sales customer. That's our hope. Their sell-through stats are good. If that keeps up, that could happen. So very happy with the relationship and we have more work to do. The potential is very good with these guys.

我們認為 ADI 可以成為 10% 的設備銷售客戶。這是我們的希望。他們的銷售統計數據很好。如果這種情況持續下去，可能會發生這種情況。我們對這種關係非常滿意，我們還有更多的工作要做。這些人的潛力非常好。

Got you. And then just as a follow up, just given how December played out and kind of how Q3 here is tracking. Would you still expect sort of normal seasonal patterns for equipment revenue in June?

明白了。然後作為後續問題，考慮到 12 月的表現以及第三季的走勢。您是否仍預期六月設備收入將呈現正常的季節性模式？

I would If you go back to the history books of this company, Q4 is always the strongest and you know, you never know with distribution, you never know with things that are unforeseen. But statistically, I would expect it to be the best.

如果你回顧這家公司的歷史，你會發現第四季度的業績始終是最強勁的，而且你知道，你永遠不知道分銷情況，你永遠不知道無法預料的事情。但從統計學上來說，我希望它是最好的。

A lot of our big customers, big distributors the year end is June is December. So they don't usually make decisions like we just saw in June quarter and for us, the June quarter is important. We want to maximize our sales.

我們的許多大客戶、大經銷商的年底是六月或十二月。因此，他們通常不會做出像我們在六月季度看到的那樣的決定，而對我們來說，六月季度很重要。我們希望最大限度地提高銷量。

So typically, it's the best. We expect it to be the best. We expect Q3 to be a comeback quarter versus what we just saw and whatever it is, we expect Q4 to be even better and that.

所以通常來說，它是最好的。我們期望它是最好的。我們預計第三季將是一個復甦的季度，無論結果如何，我們預計第四季將會更好。

Okay, perfect. Thanks a lot, guys.

好的，完美。非常感謝大家。

Thanks, Jaeson.

謝謝，Jaeson。

(Operator Instructions) Matt Summerville, DA Davidson.

（操作員指示）Matt Summerville，DA Davidson。

Thanks. I just want to be clear. Equipment revenue, should we expect that to grow on a year on year basis in Q3? I mean, logically, if this was a one time, this is us not you type thing. Why wouldn't we start to see year on year growth in Q3 again hardware?

謝謝。我只是想說清楚。設備收入，我們是否應該預期第三季將年增？我的意思是，從邏輯上講，如果這是一次性的事情，那麼這就是我們的事情，不是你們的事情。為什麼我們沒有看到第三季硬體的年成長？

Q3, like Q2 and Q1 had a very large amount of sales last year from this large New York City project that we've talked about. And so it's a special project and it's not going to be as large this year in Q3 as it was last year. That's not to say there won't be a special project or two in this quarter. But I can't say that as I sit here today without that, the comparison is difficult.

Q3 與 Q2 和 Q1 一樣，去年我們談到的這個紐約大型專案的銷售額非常大。所以這是一個特殊項目，今年第三季的規模不會像去年那麼大。這並不是說本季不會有一兩個特殊項目。但當我今天坐在這裡時，如果沒有這一點，我就不能這麼說，因為比較起來很困難。

So if we did close to $30 million last year, we'll have a tough comp because of this special project that we saw last year. So even if the distributor comes back and we're pretty sure he will and we think the other distributor as well, It'll significantly put us beyond what we just saw.

因此，如果我們去年的營收接近 3000 萬美元，那麼由於去年我們看到的這個特殊項目，我們的營收就會很困難。因此，即使分銷商回來，我們也非常確定他會回來，而且我們認為其他分銷商也會回來，這也會大大超出我們剛才看到的情況。

Thank you too. But to hit $30 million, I can't say for sure. It a lot depends on special projects which we might get, but that's why there's a little hesitation.

也謝謝你。但要達到 3,000 萬美元，我還不能肯定。這很大程度上取決於我們可能獲得的特殊項目，但這就是我們有點猶豫的原因。

And then just on repurchases, given what's happening with the stock today. Are you thinking about more aggressive repos? You're sitting on $100 million. What's the right way to kind of think about that?

然後，考慮到今天股票的狀況，我們再來談談回購。您是否正在考慮更積極的回購？你已經擁有 1 億美元。正確的思考方式是什麼？

Well, we like to do this opportunistically. This could be a nice opportunity based on what the stock is doing.

嗯，我們喜歡抓住機會來做這件事。根據股票的走勢，這可能是個很好的機會。

We like having a lot of cash and for moments like this where we could use some of it, We still are looking at acquisitions has to be the right one, but that's part of what we do. We have a lot of banks trying to find the right deal for us. We don't want to do a deal unless it's the right one. We're not going to rush into anything.

我們喜歡擁有大量現金，在這樣的時刻我們可以使用其中的一些現金，我們仍在尋找正確的收購方式，但這是我們工作的一部分。許多銀行都在努力為我們找到合適的交易。除非交易是正確的，否則我們不想做交易。我們不會倉促做任何事。

We feel our business is strong just the way it is, but there could be a deal out there. We keep looking and it'd be nice to have cash for that too. So we try to balance it buybacks, the right acquisition dividends and keeping cash on hand. All of the above. So stock buybacks is in the is in the equation.

我們認為我們的業務目前就很強勁，但可能會有交易。我們將繼續尋找，如果有現金就更好了。因此，我們試圖在回購、正確的收購股利和保留現金之間取得平衡。上述所有的。因此股票回購是包含在等式中的。

Got it. That's it for me. Thank you.

知道了。對我來說就是這樣了。謝謝。

Thank you. That concludes our Q&A I will turn the call back over to Richard Soloway for closing comments.

謝謝。我們的問答環節到此結束，我將把電話轉回給理查德·索洛韋 (Richard Soloway) 進行結束語。

Thank you, everyone, for participating in today's conference call. As always, should you have any further questions, feel free to call Fran, Kevin or myself for further information. We thank you for your interest and support, and we look forward to speaking to you all again a few months to discuss NAPCO's fiscal Q3 results. Bye-bye. Have a great day, everybody.

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 Fran、Kevin 或我本人以獲取更多資訊。我們感謝您的關注和支持，我們期待幾個月後再次與大家交談，討論 NAPCO 的第三季財務表現。再見。祝大家有個愉快的一天。

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

女士們、先生們，這包括你們今天的電話會議。感謝您的參與，並請您斷開線路。