NAPCO Security Technologies, Inc. (NSSC) 2026 Q3 法說會逐字稿

Good morning. Ladies and gentlemen, and welcome to the NAPCO Security Technologies fiscal Q3 2026 earnings conference call. (Operator Instructions) This call is being recorded on Monday, May 4, 2026.

早安。各位女士、先生，歡迎參加 NAPCO Security Technologies 2026 會計年度第三季（Q3）財報電話會議。（接線員指示）本通話於 2026 年 5 月 4 日（星期一）錄音。

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

現在我想把會議交給投資人關係副總裁 Francis Okoniewski。請開始。

Thank you, Matthew, and good morning, everyone. This is Fran 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 third quarter 2026. 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.

謝謝你，Matthew，大家早安。我是 Fran Okoniewski，Napco Security Technologies 投資人關係副總裁。感謝各位參加今天的電話會議，討論我們 2026 會計年度第三季的財務結果。到目前為止，各位應該都有機會閱讀我們的財報新聞稿，其中說明了本季業績。若尚未閱讀，新聞稿可在我們網站 www.napcosecurity.com 的投資人關係（Investor Relations）專區取得。

On the call today are Dick Soloway, our Chairman and CEO of Napco Security Technologies; Kevin Buchel, President and Chief Operating Officer; and Chief Financial Officer, Andrew Vuono. Before we begin, let me take a moment to read the forward-looking statement as this presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends and anticipated product performance.

今天與會者包括：NAPCO Security Technologies 董事長兼執行長 Dick Soloway；總裁兼營運長 Kevin Buchel；以及財務長 Andrew Vuono。在開始之前，讓我先花點時間宣讀前瞻性聲明，因為本簡報包含前瞻性陳述，係基於管理層的判斷、信念、目前趨勢與預期產品表現，並以當前的期望、估計、預測與對未來績效的推估為基礎。

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 reoccurring monthly revenue. 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.

這些前瞻性陳述包括但不限於：與公司業務成長驅動因素相關的陳述，例如校園安全產品、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與經銷商的效益、我們控制費用與成本的能力，以及我們軟體即服務（SaaS）經常性月度收入的預期年度化運行率。前瞻性陳述涉及風險與不確定性，可能導致實際結果與前瞻性陳述所載內容出現重大差異。這些因素包括但不限於：我們向美國證券交易委員會（SEC）提交的文件中所述之風險因素，包括我們的 Form 10-K 年度報告。

Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. 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. Throughout the presentation, management will address certain non-GAAP financial results.

其他未知或不可預測的因素，或其基礎假設其後被證明不正確，也可能導致實際結果與前瞻性陳述所述結果出現重大差異。雖然我們相信前瞻性陳述中反映的期望屬合理，但我們無法保證未來結果、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，今日新聞稿與本次電話會議所提供的所有資訊均以今日日期為準；除適用法律要求外，我們不承擔更新該等資訊之義務。在本簡報過程中，管理層將提及若干非 GAAP 財務結果。

We encourage you to refer to our reconciliation between GAAP and non-GAAP results, which you can find in our press release. I'll turn the call over to Dick in a moment. But I'd first like to highlight our upcoming Investor Relations engagement plans. We're actively building out our Investor Relations calendar with a series of non-deal road shows and conference appearances. Investor outreach remains a top priority for NAPCO and I want to thank everyone who helped support these efforts.

我們建議您參考 GAAP 與非 GAAP 結果之間的調節表，該調節表可在我們的新聞稿中找到。我稍後會把電話交給 Dick。但首先我想重點說明我們即將展開的投資人關係互動計畫。我們正積極建立投資人關係行事曆，安排一系列非交易路演（non-deal roadshow）與會議出席。投資人外展仍是 NAPCO 的首要任務，我也要感謝所有協助支持這些工作的夥伴。

We're looking ahead to a full and dynamic schedule this quarter. Later this week, will participate in Oppenheimer's 21st Annual Industrial Growth Conference, followed by a virtual non-deal roadshow with KeyBank on Thursday, May 7. On May 13, we'll be in New York City for Needham's 21st Annual Technology, Media and Consumer Conference. And later in May, we'll attend Cowen's 54th Annual Global TMT Conference also in New York.

我們展望本季將有一個充實且多元的行程。本週稍晚，我們將參加 Oppenheimer 第 21 屆年度工業成長會議，接著於 5 月 7 日（週四）與 KeyBank 進行一場線上非交易路演。5 月 13 日，我們將前往紐約市參加 Needham 第 21 屆年度科技、媒體與消費者會議。而在 5 月稍後，我們也將在紐約參加 Cowen 第 54 屆年度全球 TMT 會議。

In June, we'll participate in Robert W. Baird's 2026 Consumer Technology and Services Conference in New York City. We'll wrap up this stretch at the Wells Fargo Industrials and Materials Conference in Chicago on June 11. These events provide value opportunities, valuable opportunities to share our story, strengthen our relationships with the investment community and continued building momentum around our strategy and performance.

6 月，我們將參加 Robert W. Baird 於紐約市舉辦的 2026 年消費科技與服務會議。我們將在 6 月 11 日於芝加哥舉行的 Wells Fargo 工業與材料會議為這一段行程畫下句點。這些活動提供了寶貴的機會，讓我們分享公司的故事、強化與投資社群的關係，並持續為我們的策略與績效建立動能。

With that out of the way, let me turn the call over to Dick Soloway, Chairman and CEO of NAPCO Security Technologies, who will make a brief introductory comment after which our President and COO, Kevin Buchel, will make a comment on some operational and financial performance highlights. Following Kevin's remarks, our CFO, Andrew Vuono, will go through the financials in more detail, and then Kevin will return to delve deeper into NAPCO's strategies and market outlook.

在此之後，讓我把電話交給 NAPCO Security Technologies 董事長兼執行長 Dick Soloway，他將先做簡短開場，接著我們的總裁兼營運長 Kevin Buchel 將就部分營運與財務表現重點發表評論。在 Kevin 的發言之後，我們的財務長 Andrew Vuono 將更詳細說明財務數據，然後 Kevin 會再回來更深入探討 NAPCO 的策略與市場展望。

Dick, the floor is yours.

Dick，交給你了。

Good morning, everyone. Thank you for joining. Kevin Buchel will take you through the highlights of fiscal Q3. Kevin, the floor is yours.

各位早安。感謝各位參加。Kevin Buchel 將帶各位回顧 2026 會計年度第三季的重點。Kevin，交給你了。

Thank you, Dick. Good morning, everyone. I'd like to focus my remarks on the operational drivers behind our performance this quarter, with particular emphasis on the continued growth of our recurring service revenue, improvements in product margins and the strong expansion in profitability metrics that demonstrate the effectiveness of our business model.

謝謝你，Dick。各位早安。我想把重點放在本季表現背後的營運驅動因素，特別強調我們經常性服務收入的持續成長、產品毛利率的改善，以及獲利能力指標的強勁擴張，這些都展現了我們商業模式的有效性。

During the quarter, total company sales grew nearly 12% year-over-year, reflecting steady demand across both our recurring services and hardware product lines. This level of growth combined with disciplined cost management allowed us to deliver meaningful expansion in profitability and operating leverage.

本季公司整體銷售額年增近 12%，反映我們的經常性服務與硬體產品線皆維持穩健需求。這樣的成長幅度，加上嚴謹的成本管理，使我們得以在獲利能力與營運槓桿方面實現顯著擴張。

Our recurring service revenue once again delivered outstanding performance, increasing more than 15% and year-over-year and representing approximately 51% of total company sales. The scale of this business is particularly important as it now reflects an annualized run rate of over $100 million.

我們的經常性服務收入再次交出亮眼成績，年增超過 15%，並約占公司總銷售額的 51%。此業務規模尤其重要，因為其目前反映的年度化運行率已超過 1 億美元。

Just as important, the quality of this revenue remains exceptional with gross margins once again exceeding 90%, providing strong visibility and predictability to our financial results. The continued expansion of recurring services as a percentage of total revenue is one of the most significant achievements for the company. This shift towards a higher proportion of recurring revenue strengthens the overall margin profile of the business and enhances long-term earnings stability.

同樣重要的是，這項收入的品質依然卓越，毛利率再次超過 90%，為我們的財務結果提供高度能見度與可預測性。經常性服務占總收入比重的持續提升，是公司最重要的成就之一。朝向更高比例經常性收入的轉變，強化了整體業務的毛利結構，並提升長期獲利的穩定性。

It also reflects the growing installed base of connected devices and the increasing adoption of our subscription-based solutions by security dealers and integrators. In our hardware business, we also achieved solid performance and meaningful margin improvement. Equipment revenue grew over 8% year-over-year, predominantly driven by continued demand for our locking products.

這也反映出連網裝置安裝基礎的擴大，以及安全經銷商與系統整合商對我們訂閱式解決方案採用率的提升。在硬體業務方面，我們同樣取得穩健表現並帶來顯著的毛利改善。設備收入年增超過 8%，主要由我們鎖具產品的持續需求所帶動。

At the same time, equipment gross margins improved to approximately 29%, reflecting disciplined pricing, favorable product mix and continued operational efficiencies within our manufacturing operations. Our teams executed exceptionally well in managing materials, labor and overhead expenses, while maintaining consistent product quality and delivery performance.

同時，設備毛利率提升至約 29%，反映出嚴謹的定價策略、有利的產品組合，以及我們製造營運中持續的效率提升。我們的團隊在管理材料、人工與製造費用方面執行得非常出色，同時維持一致的產品品質與交付表現。

These efforts allowed us to expand overall gross margins to approximately 60% and for the quarter, and that represented a significant improvement from the prior year period and demonstrates the effectiveness of our operational discipline. From a bottom-line perspective, we delivered particularly strong growth in profitability.

這些努力使我們的整體毛利率擴張至約 60%，而且是在本季達成；相較去年同期有顯著改善，並展現我們營運紀律的有效性。從最終獲利角度來看，我們在獲利能力方面實現了特別強勁的成長。

Non-GAAP net income increased nearly 37% and year-over-year, reflecting the combined impact of revenue growth, margin expansion and disciplined expense management. This level of earnings growth demonstrates the scalability of our business model and the benefits of our increasing mix of high-margin recurring revenue. We also generated impressive growth in adjusted EBITDA, which increased more than 20% compared to the prior year.

非 GAAP 淨利潤年增近 37%，反映營收成長、毛利率擴張以及嚴謹的費用管理所帶來的綜合影響。此一獲利成長幅度展現了我們商業模式的可擴展性，以及高毛利經常性收入占比提升所帶來的效益。我們的調整後 EBITDA 亦實現亮眼成長，較去年同期增加逾 20%。

Our adjusted EBITDA margin expanded to over 32%, highlighting improved operating leverage and the strength of our core operations. These results demonstrate our ability to convert revenue growth into meaningful earnings and cash flow.

我們的調整後 EBITDA 利潤率擴大至超過 32%，凸顯營運槓桿改善以及核心營運的強勁表現。這些成果顯示我們有能力將營收成長轉化為具實質意義的獲利與現金流。

Cash flow generation remain another key strength of the business. Free cash flow increased more than 20% during the quarter, providing the financial flexibility to invest in innovation, support growth initiatives and returning capital to shareholders through our dividend program which continues with this morning's announcement of another dividend of $0.15 per share, payable on July 3, 2026, to shareholders of record on June 12, 2026. As was noted in our press release, we recorded a charge of $16 million in connection with the settlement of outstanding litigation.

現金流的創造仍是本業務的另一項關鍵優勢。本季自由現金流增加逾 20%，提供我們投資創新、支持成長計畫並透過股利計畫回饋股東的財務彈性；今早我們亦宣布再度發放每股 0.15 美元股利，將於 2026 年 7 月 3 日支付給 2026 年 6 月 12 日登記在冊的股東。如我們新聞稿所述，我們就未決訴訟的和解計提了 1,600 萬美元費用。

We are pleased to have that uncertainty behind us and the distractions it presents. Operationally, we continue to focus on execution across the organization. Our manufacturing and supply chain teams maintained reliable production levels and ensured product availability for our customers. Our sales and technical support organization remain highly engaged with dealers and distributors, helping them deploy our solutions efficiently and expand their use of our recurring service offerings. Looking ahead, our priorities remain clear.

我們很高興能將這項不確定性及其帶來的干擾拋諸腦後。在營運方面，我們持續專注於全組織的執行力。我們的製造與供應鏈團隊維持可靠的生產水準，並確保產品可供客戶取得。我們的銷售與技術支援團隊仍與經銷商與通路商保持高度互動，協助其有效部署我們的解決方案，並擴大對我們經常性服務產品的使用。展望未來，我們的優先事項依然明確。

We will continue to drive growth in recurring service revenue further improved product margins through operational discipline and efficiency initiatives and maintain a strong focus on profitability and cash generation. We believe these priorities position us well to deliver consistent financial performance and long-term value for our shareholders. This quarter demonstrated the strength of our operating model and the dedication of our employees across the organization. Their commitment to execution, innovation and customer service is what enables us to achieve strong financial results and continue building momentum.

我們將持續推動經常性服務收入成長，透過營運紀律與效率提升計畫進一步改善產品毛利率，並維持對獲利能力與現金創造的高度聚焦。我們相信這些優先事項使我們具備良好條件，為股東帶來穩健的財務表現與長期價值。本季展現了我們營運模式的強韌，以及全體員工的投入與奉獻。他們對執行、創新與客戶服務的承諾，使我們得以取得強勁的財務成果並持續累積動能。

I will now turn the call over to our Chief Financial Officer, Andy Vuono, to review the financial details, Andy?

接下來我將把電話會議交給我們的財務長 Andy Vuono，請他說明財務細節，Andy？

Thank you, Kevin, and good morning, everyone. Net revenue for the quarter ended March 31, 2026, increased 11.8% to $49.2 million as compared to $44 million for the same period a year ago. Net revenue for the nine months ended March 31, 2026, increased 11.9% to $146.5 million as compared to $130.9 million for the same period one year ago.

謝謝你，Kevin，各位早安。截至 2026 年 3 月 31 日止季度的淨營收較去年同期的 4,400 萬美元增加 11.8%，至 4,920 萬美元。截至 2026 年 3 月 31 日止九個月的淨營收較去年同期的 1.309 億美元增加 11.9%，至 1.465 億美元。

Recurring monthly service revenue in Q3 grew 15.4% to $24.9 million as compared to $21.6 million for the same period last year and recurring monthly service revenue for the nine months ended March 2026 increased 13% to $72.2 million as compared to $63.9 million last year. Our recurring service revenue now has a prospective annual run rate of approximately $101 million based on April 2026 recurring revenue which compares to $99 million based on January 2026 recurring service revenue, which we reported back in February.

第三季的每月經常性服務收入成長 15.4%，由去年同期的 2,160 萬美元增至 2,490 萬美元；截至 2026 年 3 月止九個月的每月經常性服務收入較去年增加 13%，由 6,390 萬美元增至 7,220 萬美元。以 2026 年 4 月的經常性收入推估，我們的經常性服務收入目前的年度化運行率約為 1.01 億美元；相較之下，以 2026 年 1 月的經常性服務收入推估的年度化運行率為 9,900 萬美元，我們已於 2 月對外報告。

The increase in service revenues for the three and nine months was due to the increase in number of our cellular radio communication devices put into service and activated. Equipment revenue for the quarter increased 8.4% to $24.2 million as compared to $22.4 million last year. Equipment revenue for the nine months increased 10.9% to $74.3 million as compared to $67 million for the same period last year.

三個月及九個月服務收入的增加，係因投入使用並啟用的蜂巢式無線電通訊裝置數量增加所致。本季設備收入較去年增加 8.4%，由 2,240 萬美元增至 2,420 萬美元。截至九個月的設備收入增加 10.9%，由去年同期的 6,700 萬美元增至 7,430 萬美元。

The increase in net equipment revenue for the quarter and for the nine months was primarily due to increased volume of our door locking products and the impact of price increases in both locking and door intrusion and access products. Gross profit for the three months ended March 2026 increased 17.4% to $29.5 million with a gross margin of 60% as compared to $25.1 million with a gross margin of 57.2% for the same period last year.

本季及截至九個月的淨設備收入增加，主要來自門鎖產品銷量提升，以及鎖具與門禁入侵偵測及門禁產品兩者的漲價影響。截至 2026 年 3 月止三個月的毛利增加 17.4% 至 2,950 萬美元，毛利率為 60%；相較去年同期毛利 2,510 萬美元、毛利率 57.2%。

Gross profit for the nine months increased 15.3% to $85.6 million with a gross margin of 58.4% as compared to $74.2 million with a gross margin of 56.7% a year ago. Gross profit as a percentage of service revenue was consistent in both the quarter and the nine months ended March 2026 as compared to the prior year. Gross profit for recurring service revenue for the quarter increased 14.8% to $22.5 million, with a gross margin of 90.4% as compared to $19.6 million with a gross margin of 90.8% last year.

截至九個月的毛利增加 15.3% 至 8,560 萬美元，毛利率為 58.4%；相較一年前毛利 7,420 萬美元、毛利率 56.7%。以服務收入計算的毛利率，在本季及截至 2026 年 3 月止九個月與前一年度相比均保持一致。本季經常性服務收入毛利增加 14.8% 至 2,250 萬美元，毛利率為 90.4%；相較去年為 1,960 萬美元、毛利率 90.8%。

Gross profit for recurring service revenue for the nine months increased 12% to $65.2 million with a gross margin of 90.3%, as compared to $58.2 million with a gross margin of 91.1% last year. Gross profit from equipment revenue in Q3 increased 26.4% to $6.9 million with a gross margin of 28.7% as compared to $5.5 million with a gross margin of 24.6% last year.

截至九個月的經常性服務收入毛利增加 12% 至 6,520 萬美元，毛利率為 90.3%；相較去年為 5,820 萬美元、毛利率 91.1%。第三季設備收入毛利增加 26.4% 至 690 萬美元，毛利率為 28.7%；相較去年為 550 萬美元、毛利率 24.6%。

Gross profit from equipment revenue for the nine months increased 27% to $20.4 million with a gross margin of 27.4% as compared to $16 million with a gross margin of 23.9% for the same period last year. The 280 and 170 basis point increase in overall gross margin for the quarter and the nine months ended March 2026 is due to the substantial profitability of recurring revenue, but the overall improved margins on our equipment revenue. The increase in gross profit percentage from equipment revenue for the quarter and the nine months was primarily a result of product sales mix, increased volume on unlocking products, which improved the absorption rate of our fixed overhead costs and certain price increases that went into effect during fiscal 2026 and reduction in sales discounting during the periods.

截至九個月的設備收入毛利增加 27% 至 2,040 萬美元，毛利率為 27.4%；相較去年同期為 1,600 萬美元、毛利率 23.9%。截至 2026 年 3 月止本季及九個月整體毛利率分別提升 280 個基點與 170 個基點，係因經常性收入具高度獲利性，以及我們設備收入毛利率整體改善所致。本季及截至九個月設備收入毛利率上升，主要源於產品銷售組合、解鎖產品銷量增加（提升固定製造費用的吸收率）、2026 會計年度生效的部分漲價，以及期間內銷售折扣減少。

Research and development expense for the quarter increased 7.3% to $3.4 million or 7% of net revenues as compared to $3.2 million or 7.2% of net revenues for the same period a year ago. Research and development costs for the 9 months ended March 2026 increased 8.4% to $10.1 million was 6.9% of net revenues as compared to $9.3 million or 7.1% of net revenue for the same period a year ago.

本季研發費用增加 7.3% 至 340 萬美元，占淨營收 7%；相較去年同期為 320 萬美元，占淨營收 7.2%。截至 2026 年 3 月止九個月的研發成本增加 8.4% 至 1,010 萬美元，占淨營收 6.9%；相較去年同期為 930 萬美元，占淨營收 7.1%。

Increase for the three and nine months primarily resulted from annual compensation and benefit increases and hiring of additional resources. Selling, general and administrative expenses for the quarter increased 4.3% to $11.3 million or 22.9% of net revenues as compared to $10.8 million or 24.6% of net revenues for the same period last year.

三個月及九個月的增加主要來自年度薪酬與福利調升，以及增聘額外人力資源。本季銷售、一般及行政費用增加 4.3% 至 1,130 萬美元，占淨營收 22.9%；相較去年同期為 1,080 萬美元，占淨營收 24.6%。

SG&A expenses for the nine months ended March 2026 increased 5%, the $32.2 million or 22% of net revenue as compared to $30.7 million or 23.5% of revenue for the same period last year. The increase for the three and nine months was primarily attributable to increases in trade share-related expenses, the ISC West show occurred in Q3 this year as compared to Q4 of last year, wages, bonuses, compensation and benefits, sales commissions and related expenses and insurance expense, which was offset by decreases in professional fees and legal fees.

截至2026年3月止九個月的銷售、一般及行政（SG&A）費用增加5%，為3,220萬美元（占淨營收22%），相較去年同期為3,070萬美元（占營收23.5%）。三個月及九個月的增加主要歸因於通路分潤相關費用增加、今年ISC West展會於第三季舉行（去年則在第四季）、薪資、獎金、薪酬與福利、銷售佣金及相關費用，以及保險費用增加；上述增加部分被專業服務費與法律費用下降所抵銷。

As Kevin previously mentioned, for the three and nine months ended March 2026, we recorded a litigation settlement expense of $16 million as a result of settling existing litigation subsequent to the end of Q3.

如Kevin先前提到，截至2026年3月止三個月及九個月，我們因在第三季結束後就既有訴訟達成和解而認列1,600萬美元的訴訟和解費用。

Non-GAAP operating income for the quarter increased 32.9% to $14.8 million as compared to $11.1 million for the same period last year. Non-GAAP operating income for the nine months ended March 2026 increased 26.4% to $43.2 million as compared to $34.2 million for the same period last year. Other income for the quarter increased 14.4% to $986,000 as compared to $862,000 last year for the nine months, other income increased 1.3% to $3 million as compared to $2.9 million last year.

本季非GAAP營業利益較去年同期增加32.9%至1,480萬美元，去年同期為1,110萬美元。截至2026年3月止九個月的非GAAP營業利益較去年同期增加26.4%至4,320萬美元，去年同期為3,420萬美元。本季其他收益增加14.4%至98.6萬美元，去年為86.2萬美元；就九個月而言，其他收益增加1.3%至300萬美元，去年為290萬美元。

The increases for both the three and nine months ended March 2026 was due to increased interest income from larger deposit (inaudible) As a result of the aforementioned litigation settlement, the provision for income taxes for the quarter was $200,000 as compared to $1.9 million last year.

截至2026年3月止三個月及九個月的增加，係因較大存款帶來的利息收入增加（聽不清）。由於前述訴訟和解，本季所得稅費用提列為20萬美元，去年同期為190萬美元。

For the 9 months, the provision for income taxes was $4.9 million, which represents an effective tax rate of 16.3% as compared to $5.2 million for the same period last year with an effective tax rate of 14.4%. The company's effective tax rate for the nine months ended March 2026 increased as a result of the increase in the portion of taxable income allocated to the United States as a result of the litigation settlement offset by windfall benefits from the exercise of employee stock options during the period. Non-GAAP net income for the quarter increased 36.9% to $13.9 million or $0.39 per diluted share as compared to $10.1 million or $0.28 per diluted share for the same period last year and represented 28.2% of net revenue as compared to 23% for the same period last year.

就九個月而言，所得稅費用提列為490萬美元，代表有效稅率16.3%，相較去年同期為520萬美元、有效稅率14.4%。公司截至2026年3月止九個月的有效稅率上升，係因訴訟和解使分配至美國的應稅所得占比提高；但期間內員工股票選擇權行使所帶來的超額稅務利益（windfall benefits）部分抵銷了該影響。本季非GAAP淨利較去年同期增加36.9%至1,390萬美元（稀釋後每股0.39美元），去年同期為1,010萬美元（稀釋後每股0.28美元）；並占淨營收28.2%，相較去年同期為23%。

Non-GAAP net income for the nine months ended March increased 24.4% to $39.5 million or $1.10 per diluted share as compared to $31.8 million or $0.86 per diluted share for the same period last year and represents 27% of net revenue as compared to 24.3% for the same period last year. Adjusted EBITDA for the quarter increased 20.2% to $15.8 million or $0.44 per diluted share as compared to $13.2 million or $0.36 per diluted share for the same period a year ago and equates to an adjusted EBITDA margin of 32.2% as compared to 29.9% for the same period last year.

截至3月止九個月的非GAAP淨利增加24.4%至3,950萬美元（稀釋後每股1.10美元），相較去年同期為3,180萬美元（稀釋後每股0.86美元）；並占淨營收27%，相較去年同期為24.3%。本季調整後EBITDA增加20.2%至1,580萬美元（稀釋後每股0.44美元），相較去年同期為1,320萬美元（稀釋後每股0.36美元）；相當於調整後EBITDA利潤率32.2%，相較去年同期為29.9%。

Adjusted EBITDA for the nine months ended March 2026 increased 21.7% to $46.1 million or $1.28 per diluted share as compared to $37.9 million or $1.03 per diluted share for the same period last year and equates to an adjusted EBITDA margin of 31.5% as compared to 28.9% for the same period last year. Free cash flows for the quarter increased 20.3% to $16 million as compared to $13.3 million for the same period a year ago and equates to a free cash flow margin of 32.6% this year compared to 30.3% last year.

截至2026年3月止九個月的調整後EBITDA增加21.7%至4,610萬美元（稀釋後每股1.28美元），相較去年同期為3,790萬美元（稀釋後每股1.03美元）；相當於調整後EBITDA利潤率31.5%，相較去年同期為28.9%。本季自由現金流增加20.3%至1,600萬美元，去年同期為1,330萬美元；相當於自由現金流利潤率今年為32.6%，去年為30.3%。

Free cash flow for the nine months increased 13.4% to $42 million as compared to $37 million for the same period a year ago and equates to a free cash flow margin of 28.7% this year compared to 28.3% last year. Moving on to our balance sheet. As of March 2026, the company had $125 million in cash and cash equivalents and marketable securities as compared to $99.1 million as of June 2025.

截至九個月的自由現金流增加13.4%至4,200萬美元，去年同期為3,700萬美元；相當於自由現金流利潤率今年為28.7%，去年為28.3%。接下來談資產負債表。截至2026年3月，公司持有現金及約當現金與有價證券1.25億美元，相較2025年6月為9,910萬美元。

The company had no debt as of March, working capital. As of March 2026, was $153.8 million as compared to working capital of $138.4 million as of June 2025. Our current ratio was 4.9:1 as of March 2026 as compared to 6.8:1 as of June 2020. CapEx for quarter was $734,000 as compared to $65,000 in the prior year and $1.5 million for the nine months as compared to $1.9 million last year.

截至3月，公司沒有負債，營運資金。截至2026年3月為1.538億美元，相較2025年6月的營運資金為1.384億美元。截至2026年3月的流動比率為4.9:1，相較2020年6月為6.8:1。本季資本支出（CapEx）為73.4萬美元，相較前一年為6.5萬美元；九個月資本支出為150萬美元，相較去年為190萬美元。

That concludes my formal remarks, and I would like to turn the call back to Kevin.

以上是我正式的發言，接下來我想把電話會議交回給Kevin。

Thank you, Andy. As you've heard today, our fiscal third quarter 2026 results reflect another strong period of execution and meaningful progress against our long-term strategy. These results reinforce that our business model is working exactly as intended. Our inclusion in the S&P Small Cap 600 is an important milestone for NAPCO Security Technologies and it reflects the progress we've made in scaling the business and delivering consistent results. While this enhances our visibility and broadens our shareholder base, our focus remains firmly on execution and long-term value creation.

謝謝你，Andy。如各位今天所聽到的，我們2026會計年度第三季的業績反映了又一個強勁的執行期，並在我們的長期策略上取得了具體進展。這些結果再次證明，我們的商業模式正如預期般運作。我們納入S&P Small Cap 600指數，對NAPCO Security Technologies而言是一個重要里程碑，反映我們在擴大業務規模並持續交付穩健成果方面所取得的進展。雖然這提升了我們的能見度並擴大股東基礎，但我們仍將重心堅定放在執行與長期價值創造上。

At the core of our strategy is our recurring service revenue platform, which continues to deliver consistent high-margin growth. Recurring service revenue exceeded 50% of our total Q3 sales, supported by sustained gross margins above 90%, with an annualized run rate exceeding $100 million. This provides a predictable, high-quality revenue stream that drives strong cash generation and long-term value creation. A key contributor to this performance is our Starling commercial fire radio platform, which has firmly established itself as the industry standard for commercial fire alarm communicators. Demand remains healthy across both new installations and our growing installed base, and we continue to see meaningful runway ahead.

我們策略的核心是經常性服務營收平台，該平台持續帶來穩定的高毛利成長。經常性服務營收已超過我們第三季總銷售額的50%，並由90%以上的持續毛利率所支撐，年化運行率（run rate）超過1億美元。這提供了可預測且高品質的營收來源，推動強勁的現金創造與長期價值創造。此表現的一個關鍵貢獻者是我們的Starling商用消防無線電平台，其已穩固確立為商用消防警報通訊器的業界標準。無論是新裝設案或我們持續擴大的既有裝機基礎，需求仍然健康，我們也持續看到前方仍有可觀的成長空間。

particularly as the transition away from legacy copper phone lines to cellular connectivity accelerates. With connectivity across AT&T, Verizon and now T-Mobile networks, StarLink is well positioned to capture additional market share across millions of commercial buildings that have not yet converted to a cellular solution. We also saw a strong validation of that demand at ISC West 2026 at the end of March, which was a tremendous success for us and generated a record number of leads across all NAPCO platforms.

特別是在從傳統銅線電話線路轉向行動蜂巢式連線的轉換加速之際。StarLink已支援AT&T、Verizon以及現在的T-Mobile網路連線，具備良好定位，可在尚未轉換為蜂巢式解決方案的數百萬棟商用建築中，進一步取得更多市占率。我們也在3月底的ISC West 2026展會上看到對該需求的強力驗證；該展會對我們而言非常成功，並在所有NAPCO平台上創下歷史新高的潛在客戶線索數量。

Our sales and marketing teams are now actively qualifying and pursuing these opportunities, building a robust pipeline that supports continued growth. On the equipment side, we are equally encouraged by the continued momentum driven by door locking installations and in our intrusion and on product segments.

我們的銷售與行銷團隊目前正積極篩選並追進這些機會，建立強健的商機管線，以支撐持續成長。在設備端，我們同樣受到持續動能的鼓舞，這股動能來自門鎖安裝，以及我們的入侵偵測與 on product 產品線區隔。

Pricing actions, more disciplined discounting and rebate practices and favorable mix have led to significantly improved equipment gross margins, and we believe more improvements can be made. Profitability remains a major strength of the company.

定價措施、更嚴謹的折扣與回饋（rebate）作法，以及有利的產品組合，已帶動設備毛利率顯著改善，我們相信仍有進一步提升空間。獲利能力仍是公司的一大強項。

Non-GAAP operating income, net income and adjusted EBITDA all grew significantly faster than revenue, demonstrating continued strong operating leverage, with EBITDA margins exceeding 30%, we're generating substantial cash flow while continuing to invest in innovation, infrastructure and growth initiatives. Our balance sheet further differentiates us with $125 million in cash and marketable securities and no debt. which gives us exceptional financial flexibility and enables us to invest organically, pursue strategic opportunities and continue returning capital to shareholders.

非 GAAP 營業利益、淨利與調整後 EBITDA 的成長速度皆顯著快於營收，展現持續強勁的營運槓桿；EBITDA 利潤率超過 30%，我們在持續投資創新、基礎建設與成長計畫的同時，也創造可觀的現金流。我們的資產負債表亦進一步形成差異化：持有 1.25 億美元現金與有價證券且無負債，這賦予我們卓越的財務彈性，使我們能進行有機投資、追求策略性機會，並持續回饋資本給股東。

Operationally, our team continues to execute at a very high level. We're managing inventory tightly while investing in product development, compliance automation and infrastructure, all while maintaining a debt-free balance sheet. Our manufacturing facility in the Dominican Republic remains a key competitive advantage, providing cost efficiency, stable logistics and lower tariff exposure as compared to many competitors operating in higher tariff regions. We're also driving a new phase of commercial expansion by entering the architectural and engineering specification market, positioning us so the specification-driven opportunities across the entire NAPCO portfolio. In parallel, we continue to broaden our distribution footprint through new and expanding channel partnerships.

在營運面，我們的團隊持續以非常高的水準執行。我們在投資產品開發、合規自動化與基礎設施的同時，也嚴格控管庫存，並維持零負債的資產負債表。我們位於多明尼加共和國的製造工廠仍是關鍵競爭優勢，相較於許多在較高關稅地區營運的競爭對手，能提供成本效率、穩定物流與較低的關稅曝險。我們也正透過切入建築與工程規格（specification）市場，推動新一階段的商業擴張，使我們能掌握整個 NAPCO 產品組合中由規格驅動的機會。同時，我們持續透過新的與擴大的通路夥伴關係，拓展我們的配銷版圖。

These initiatives are expanding our reach across a broader branch network and enhancing product availability in the field. Innovation remains central to our strategy. We continue to enhance our MVP cloud-based access control platform, incorporating customer-driven features based on continual customer feedback. MVP represents a meaningful step forward introducing a subscription-based revenue model for both NAPCO and our locking and access control dealers. We believe MVP has the potential to be a game changer, extending our leadership into the hosted access control market, while reinforcing our strategy of pairing innovative hardware with cloud-based services to drive high-margin recurred revenue.

這些計畫正在擴大我們在更廣泛分支網路的觸及範圍，並提升前線的產品可得性。創新仍是我們策略的核心。我們持續強化 MVP 雲端式門禁控制平台，依據持續的客戶回饋納入由客戶驅動的功能。MVP 是一項重要的進展，為 NAPCO 以及我們的鎖具與門禁經銷商導入訂閱制營收模式。我們相信 MVP 具備成為顛覆性產品的潛力，可將我們的領導地位延伸至託管式（hosted）門禁控制市場，同時強化我們以創新硬體搭配雲端服務、以推動高毛利經常性收入的策略。

In addition, our new smart and interconnected dead bolt platform positions both the company and our dealers to capitalize on the fast-growing US multifamily market, expanding beyond traditional security hardware into unit level access control and scale. Beyond access control, our Alarm Lock and Marks hardware lines continue to grow across key verticals, including health care, retail, multi-dwelling housing, airport infrastructure and especially school security, where our integrated solutions are viewed favorably alongside enterprise scale access control systems.

此外，我們全新的智慧且互聯的死鎖（dead bolt）平台，使公司與經銷商能把握快速成長的美國多戶住宅市場，從傳統安防硬體延伸至住戶單元層級的門禁控制並擴大規模。在門禁控制之外，我們的 Alarm Lock 與 Marks 硬體產品線也持續在關鍵垂直領域成長，包括醫療保健、零售、多戶住宅、機場基礎設施，尤其是校園安全；在該領域，我們的整合式解決方案與企業級門禁控制系統並列時，獲得正面評價。

NAPCO platforms are secure, scalable and aligned with the partner alliance for safer schools guidelines. I mean ongoing market and geopolitical uncertainty we remain grounded in what we can control our strategy, our execution and our commitment to creating sustainable shareholder value.

NAPCO 平台具備安全性、可擴充性，並符合「更安全學校夥伴聯盟」（Partner Alliance for Safer Schools）的指引。我的意思是，面對持續的市場與地緣政治不確定性，我們仍專注於我們能掌控的部分：我們的策略、我們的執行力，以及我們對創造可持續股東價值的承諾。

Looking ahead, we remain optimistic about the remainder of fiscal 2026 and beyond. Demand, of course, our product portfolio remains strong. Our recurring revenue base continues to expand and our operating discipline remains firmly in place. Dick and I would like to thank you all for your continued support and confidence in NAPCO. Our formal remarks are now concluded and we would now like to open the call up for the Q&A session.

展望未來，我們對 2026 會計年度剩餘期間及其後仍保持樂觀。當然，需求面與我們的產品組合依然強勁。我們的經常性收入基礎持續擴大，營運紀律也依舊穩固。Dick 和我想感謝各位持續的支持，以及對 NAPCO 的信心。我們的正式發言到此結束，接下來我們將開放電話會議進入問答環節。

Operator, please proceed.

接線員，請繼續。

(Operator Instructions)

（接線員指示）

Matt Summerville, DA Davidson.

Matt Summerville，DA Davidson。

Thanks. I apologize for background noise in the airport, but I was curious how we should be thinking about pricing actions for 2020 or fiscal '27? And ultimately, how you're balancing your discounting programs in that if discounted is coming down, that would theoretically have an impact on equipment volume, which would then theoretically have a downstream impact the growth rate in RSR. How should I be thinking about that dynamic? And then I have a follow-up.

謝謝。我為機場的背景噪音致歉，但我想了解我們應該如何看待 2020 或 27 會計年度的定價措施？以及最終你們如何在其中平衡折扣方案；如果折扣在下降，理論上會影響設備出貨量，進而理論上會對 RSR 的成長率產生下游影響。我應該如何理解這個動態？另外我還有一個追問。

Last year at this time, we had two price increases we announced. We announced a tariff one and a general one and that drove a lot of business into Q4 as the distributors try to avoid these increases. This year, we have a general price increase. And so we don't have as much of pricing increases this year as we did last year, but we still have a general one. So it's not going to be the same from that point of view.

去年這個時候，我們宣布了兩次漲價。我們宣布了一次關稅相關的漲價以及一次一般性漲價，這使得許多業務提前到第四季，因為經銷商試圖避免這些漲幅。今年，我們有一次一般性漲價。因此，今年的漲價幅度沒有去年那麼多，但仍有一次一般性漲價。所以從這個角度來看，不會和去年一樣。

And also, we are much more disciplined in our discounting now than we've ever been. And the good part of that is our margins go up, and they did go up this quarter to close to 29%. And we're going to continue to be disciplined like that. What we want to do is generate more hardware sales but also not give away margin along the way. So we're working hard to have both. And so as we're into this fourth quarter that we're in now, it might be a little different than it was a year ago. But from a profitability point of view, it should be better than it was a year ago.

另外，我們現在在折扣管理上比以往任何時候都更有紀律。這樣做的好處是毛利率上升，而本季確實上升到接近 29%。我們會持續維持這樣的紀律。我們想做的是帶動更多硬體銷售，但同時不在過程中犧牲毛利。所以我們正努力同時達成兩者。因此，進入我們現在的第四季，情況可能會與一年前略有不同。但從獲利能力的角度來看，應該會比一年前更好。

Got it. And then can you talk about whatever or not you're starting to see any traction, discernable traction in revenue and recurring from MVP and how we should be thinking about kind of uses of cash M&A-wise over the next six months.

了解。那麼你能否談談你們是否已開始看到 MVP 在營收與經常性收入方面的任何進展、可辨識的進展？以及在未來六個月，我們應如何看待現金用途，特別是併購（M&A）方面？

So MVP, we have said -- it's an 18 -- give it 18 months. I started the clock from ISC West last year, 18 months puts us about October of this year. That's when we expect meaningful recurring revenue to begin. That's what I expect we can talk to you about it. It gives you say, hey, it's x percent of our total recurring or it's X dollars.

關於 MVP，我們曾說過——以 18 個月為期——給它 18 個月。我從去年 ISC West 開始計時，18 個月大約落在今年 10 月。那時我們預期有意義的經常性收入將開始出現。我預期那時我們就能和各位談這件事。讓你可以說，嘿，它占我們總經常性收入的 x%，或是 X 美元。

So we're not there yet. We're encouraged to those of you who were at the show, you saw a mix in our booth wanting to see MVP getting a lot of great interest. We're doing a lot of training. We don't want to screw this thing up. We want to do it right, get everybody's feedback and then we think it will be super successful.

所以我們還沒到那一步。我們感到鼓舞；那些到場參展的各位，在我們攤位上看到很多人想了解 MVP，並獲得大量正面關注。我們正在做大量訓練。我們不想把這件事搞砸。我們想把它做好，收集大家的回饋，然後我們認為它會非常成功。

And so give it a few more months, Matt, and then I think we'll start to feel it. And then with regard to M&A activity, we and have a lot that's being served up to us. We have a lot of bankers who are interested in working with us. We have a couple that particularly we're interested in, nothing imminent. But as you guys know, we have the cash to do it. It's a good time. The last one we did was many years ago. And at that time, we had lots of debt, minimal cash. It's a much different story now. So -- we're in a good position to do something.

所以再給它幾個月，Matt，我想我們就會開始感受到成效。至於併購活動，我們確實有很多案子被推到我們面前。有很多投資銀行家有興趣與我們合作。我們特別對其中幾個有興趣，但目前沒有任何迫在眉睫的交易。但如各位所知，我們有現金可以做。現在是個好時機。我們上一次併購是在很多年前。而當時我們負債很多、現金很少。現在的情況完全不同。所以——我們處於一個很好的位置，可以做些事情。

But as we've said, got to be right. We're not going to just do one for the sake of doing it. It's got to check all the boxes of things like being accretive from day 1 paying a fair multiple, utilizing our Dominican factory, so we can get the leverage from the factory. Pay a fair multiple, wanted to stick in our lane. It has those things. We're interested -- there's a couple that we've got our eye on, and we'll keep you posted as things develop.

但正如我們所說，必須要做對。我們不會為了做而做。它必須從第 1 天起就具備增厚效益（accretive）、支付合理倍數、並能運用我們的多明尼加工廠，讓我們能從工廠端取得槓桿效益。支付合理倍數，並希望專注在我們熟悉的領域。它具備這些條件。我們有興趣——有幾個我們正在關注的標的，隨著事情發展我們會持續向各位更新。

Thanks, Kevin.

謝謝你，Kevin。

Jim Ricchiuti, Needham and Company.

Jim Ricchiuti，Needham and Company。

Thank you. Good morning. I'm curious on the door locking side of the business. What kind of activity are you seeing both from the standpoint of school security and then the efforts you've been talking about each quarter now about potentially larger project, architectural engineering related parts of the business. How are we thinking about that area of the business?

謝謝。早安。我想了解一下門鎖（door locking）這一塊的業務。不論是從校園安全的角度，或是你們每一季都在談、可能更大型的專案——與建築／工程相關的業務部分——你們看到的活動情況如何？我們該如何看待這個業務領域？

The school segment remains strong. We always are asked, and I'm sure you asked us as well. Well, how much is it of your locking? And I wish we could tell you, we sell, as you know, to distributors for the most part and the distributors are the ones that's out of the schools. In some cases, we'll sell directly to the integrator who will do the installation at a live school and we know about those, but it's hard for us to tell you exactly how much is school security.

學校這個細分市場仍然很強。我們總是被問到——我相信你也問過我們——「你們的鎖具業務中，有多少是來自鎖具？」我希望我們能告訴你，但如你所知，我們大多是賣給經銷商，而經銷商才是實際供貨到學校端的那一方。在某些情況下，我們會直接賣給系統整合商，由他們在實際運作中的學校進行安裝，這些我們知道，但我們很難精確告訴你校園安全占比到底是多少。

But we know it's been very strong. It's very good. Our locking sales, which you guys will see when you look at the Q and you see the breakout between our segments, locking was very strong once again this quarter. It's a reflection of all of these areas, whether it's airports, hospitals, schools, all of them. It's clicking on all cylinders.

但我們知道它一直非常強勁。表現非常好。我們的鎖具銷售——各位在看本季財報、看到各事業部拆分時會看到——本季鎖具再次非常強。這反映了所有這些領域，不論是機場、醫院、學校，全部都在帶動。可以說是全面發力。

There are some big projects when we can tell you about it, we will. Sometimes there's a hesitation. They don't want it publicized, but there are some that are out there that we expect to be contributors in the future, and we'll keep you posted on that. And generally speaking, we are very happy with the way the locking area is going, and there's more work to be done. We want to get locking to be even stronger.

有一些大型專案，當我們可以對外說明時就會說。有時候會有所顧慮。他們不希望被公開宣傳，但確實有一些專案在進行中，我們預期未來會有貢獻，我們也會持續向各位更新。整體而言，我們對鎖具這一塊的進展非常滿意，而且還有更多工作要做。我們希望讓鎖具業務更強。

We want the radio business to get stronger. The radio business contributes to the recurring revenue. We want MVP to start to contribute as MPP gives us more recurring revenue. So each of these areas, we're focused heavily on, Jim.

我們也希望無線電（radio）業務更強。無線電業務會貢獻經常性收入。我們希望 MVP 開始貢獻，因為 MPP 會帶來更多經常性收入。所以這些領域我們都非常聚焦，Jim。

Got it. Yeah, the recurring service revenue margins have remained elevated, which I'm assuming, I think you guys have said so, is being helped by mix. How much of that is associated with fire radios versus, say, a year ago? Are you able to give us that?

了解。是的，經常性服務收入的毛利率一直維持在較高水準，我想——你們也提過——這部分是受產品組合（mix）幫助。其中有多少是與消防無線電（fire radios）相關，相較於例如一年前？你們能提供一些數字嗎？

Yeah, we can. So we started the recurring revenue journey 10 years ago roughly. At that time, when we first started, we didn't even have a fire radio, in the first few years was just Burberry radio. Maybe three years in fire radio came out, and it has become the dominant piece of the pie. We have roughly 1 million radios active out there.

可以。我們大約在 10 年前開始推動經常性收入的布局。當時剛開始的時候，我們甚至還沒有消防無線電，前幾年只有 Burberry 無線電。大概三年後消防無線電推出，並且已成為占比最大的主力。我們目前大約有 100 萬台無線電在外部啟用運作。

And I'd say 75% of them are fire radios. That's why you see the margins, the strong margins because we get more money for the fire radios and it's keeping up. I was very happy to see 15.4%. That was a higher increase than we've seen in a while. Very happy to see the 90% plus margin.

我會說其中約 75% 是消防無線電。這就是你看到毛利率強勁的原因，因為消防無線電的單價／收費更高，而且需求仍在延續。我很高興看到 15.4%。這是我們一段時間以來看到較高的增幅。也很高興看到 90% 以上的毛利率。

It actually went up a bit to 90.4%. That's all very good. We expect it to continue, and there's lots more buildings that have not yet converted to copper -- away from copper to cellular. As you remember, with the 3G sunset by the dealers wait for the end, they wait to the bidder end by 2029, 2030, they're going to have to convert because the carriers are not going to fix it anymore. So we're seeing steady growth.

實際上還小幅上升到 90.4%。這些都非常好。我們預期會持續，而且還有很多建築尚未從銅線（copper）轉換——也就是從銅線改為行動網路（cellular）。如各位記得，隨著 3G 退場，經銷商往往會等到最後，他們會一路等到 2029、2030 年的期限才動作；屆時他們必須轉換，因為電信商將不再維修。因此我們看到穩定成長。

It'll probably be a big push few years from now. But in the meantime, steady growth, lots of radios. And also just to remind everybody, we sell fire panels with the radio built in. So that's for new work. So it's for existing who wants to convert away from copper and it's also for new. But this has been going on now for a while. It remains strong. It remains a key part of our future.

可能在幾年後會出現一波更大的推動。但在此期間是穩定成長，無線電數量很多。另外也提醒大家，我們銷售的消防主機（fire panels）是內建無線電的。那是用於新建／新案。所以既適用於既有客戶想從銅線轉換，也適用於新案。但這已經進行一段時間了。它仍然很強。它仍然是我們未來的關鍵部分。

Thank you.

謝謝。

Jaeson Schmidt, Lake Street.

Jaeson Schmidt，Lake Street。

Hey, guys. Thanks for taking my question. Kevin, just curious if you could comment on what you're seeing from the distributor channel and kind of what sell-through stats you saw in this past quarter?

嗨，各位。謝謝讓我提問。Kevin，我想請你評論一下你們在經銷通路（distributor channel）看到的情況，以及上季你們觀察到的終端銷售（sell-through）數據大概如何？

Distributor channel seems stable. As you know, it has its ups and downs. Sometimes they're too light. Sometimes, they're too heavy. They're in a good spot now, and we'd like to keep it that way. Sometimes when we do these big deals with these distributors give big discounts -- they carry too much inventory from their point of view. They forget that we gave them an incentive to do that, to discount. Without giving huge discounts, it's kind of nice. The channel seems smooth, nice I hope it stays that way. It could even tell, but right now, it's in a good spot, Jaeson.

經銷通路看起來很穩定。如你所知，它有起有落。有時候庫存太少。有時候庫存太多。目前處在一個不錯的位置，我們也希望維持這樣。有時候我們跟這些經銷商做一些大單、給很大的折扣——從他們的角度看就會囤太多庫存。他們會忘了我們當初給他們那個誘因去做折扣、去多備貨。在不需要給很大折扣的情況下，這樣其實挺好。通路看起來很順暢、狀況不錯，我希望能維持下去。未來也可能會變，但就目前而言，狀態很好，Jaeson。

Okay. That makes sense. And then just following up on that, as you noted, kind of you're doing less discounting and seeing some nice margin on that equipment revenue line. When you think about the path back to sort of 30% plus gross margins on equipment, what are going to be the primary drivers there?

好的。這很合理。接著追問一下，如你所說，你們折扣做得比較少，因此設備收入那一行的毛利率也不錯。當你們思考設備毛利率回到 30% 以上的路徑時，主要的驅動因素會是什麼？

Well, you need volume besides doing less discounting, you need volume. The reason you need volume is you get overhead absorption from the Dominican Republic Factory. The more goods that flows through the Dominican Republic factory, the higher the margins go. Because if you think about it, we have the facility, the facility in the DR to do $300 million of revenue. So the facility could handle additional volume.

除了少打折之外，你還需要出貨量（volume），需要量。之所以需要量，是因為你可以從多明尼加共和國工廠取得製造費用／間接費用的吸收（overhead absorption）。流經多明尼加工廠的貨越多，毛利率就越高。因為你想想看，我們在多明尼加的那個廠房，產能可以支撐 3 億美元的營收。所以這個廠房可以承接更多的出貨量。

We have lots of machines that could handle the volume. We have supervision. They can handle the volume, you have to add more direct labor. Luckily, in the DR, we can get all the labor we want, and they all want to work for us. compared to others, other companies down there.

我們有很多機器可以處理這樣的產量。我們有監督管理。它們可以處理這個量，你只需要增加更多直接人力。幸運的是，在多明尼加共和國（DR），我們想要多少勞工就能找到多少，而且他們都想為我們工作，相較於那邊的其他公司。

So if you're only adding direct labor, and that's it, the margins expand that helps us get into the 30s. So that less discounting and mix. Remember, you get more money for a locking product than you do for a radio -- now radio, we love because it gives us the recurring revenue. But from a hardware point of view, it makes modest profit locking, access. They do bet. So you need a good mix -- you need less discounting, you need volume, you get all of that. We're in the 30s, pushing to 40.

所以如果你只是增加直接人力，僅此而已，毛利率就會擴張，這有助於我們進入30%區間。所以就是更少的折扣與產品組合。記住，鎖具產品的單價會比無線電更高——而無線電我們很喜歡，因為它帶來經常性收入。但從硬體角度來看，鎖具、門禁的利潤是溫和的。他們確實會押注。所以你需要好的產品組合——你需要更少折扣、你需要量，你把這些都做到。我們在30%區間，正往40%推進。

Okay, perfect. Thanks a lot, guys.

好，完美。非常感謝，各位。

Jeremy Hamblin, Craig-Hallum Capital Group.

Jeremy Hamblin，Craig-Hallum Capital Group。

Thanks. Congrats on the strong results and the record gross margins. I wanted to just get into the cost side of the equation a little bit. And just in terms of a little bit of noise in the quarter, obviously related to the litigation settlement -- but in terms of the underlying OpEx of the business, whether it's your R&D, the SG&A side of your business, I know you had, I think, ISC West expenses really in the March quarter.

謝謝。恭喜你們交出強勁的成果以及創紀錄的毛利率。我想稍微談一下成本端。就本季一些雜訊而言，顯然與訴訟和解有關——但就公司基礎營運費用（OpEx）來看，不論是研發（R&D）或是銷售、一般及行政（SG&A）端，我知道你們在3月季度應該有一些 ISC West 的費用。

I think next year, that shifts into Q4 and fiscal '27. But in terms of the hiring that you might need to do on the R&D portion of your team and then in terms of kind of the corporate staffing and the rest of your SG&A. Can you just give us a sense for what you might be looking to build out here over the next four or five quarters?

我想明年那會移到Q4以及2027財年。但就你們研發團隊可能需要的招募，以及公司人力配置與其餘SG&A而言，你們能否讓我們了解一下，未來四到五個季度你們打算如何擴編？

Well, the biggest thing we could comment on with regard to this quarter that we're in is what you mentioned that ISC West was in Q3, March. We had it. It's already reflected in the numbers. As we -- in Q4 now on fiscal '26, we won't have that. Last year, we did.

嗯，關於我們目前這一季，最主要能評論的就是你提到的 ISC West 在Q3、也就是3月。我們有發生。它已經反映在數字裡了。而我們現在進入2026財年Q4時，就不會有那筆。去年我們有。

So that's a nice favorable comparison -- it's in the range of, I don't know, $700,000 to $800,000, something like that. So that's a big plus. And next year, we'll be in April. Usually, it is in April this year because of the calendar and the holidays it fell in March. In general, we do not anticipate any huge increases in SG&A.

所以這是一個不錯的有利比較——大概在70萬到80萬美元左右，差不多是那個量級。所以這是一個很大的加分項。而明年會在4月。通常都是在4月；今年因為行事曆與假期的關係落在3月。整體而言，我們不預期SG&A會有任何巨幅增加。

The things that drive SG&A higher commissions, you have higher sales, you're going to have more commissions. You might have higher freight costs also. There's salary increases that you give out every year. The wildcard within SG&A is legal. Now settling this lawsuit is good.

推升SG&A的因素包括更高的佣金——銷售更高，你就會有更多佣金。你也可能會有更高的運費成本。每年也會有你發放的薪資調整。SG&A裡的不確定因素是法務。現在把這個訴訟和解是好事。

It will put more predictability into our the legal portion of the SG&A. On the R&D side, we try to keep the R&D as a percentage of sales somewhere in the 7% to 7.5% range. Our sales obviously are growing, and so is our -- number of our engineers. We are expanding as fast as we can. We're adding more engineers all the time, what we want, more products, get them to market faster get products to market faster than have recurring revenue.

這會讓我們SG&A中法務那一塊更具可預測性。在研發端，我們努力把研發費用占營收比維持在7%到7.5%左右。我們的銷售顯然在成長，我們的——工程師人數也在增加。我們正以最快速度擴張。我們一直在增加工程師；我們想要更多產品、更快推向市場——更快把產品推向市場，進而帶來經常性收入。

And so we want to be the first guy out there with the new product, not the second or the third guy. So hence, add more people. But we watch it, it's not just higher wildly. We're still -- even though we've added many more engineers, we're still in the 7% to 7.5% of sales range, and I expect it to stay in that range.

因此我們希望成為第一個推出新產品的人，而不是第二或第三。所以才會增加人手。但我們會控管，不是毫無節制地亂招人。我們仍然——即使我們增加了更多工程師，研發占營收比仍在7%到7.5%的區間，我預期也會維持在這個區間。

Got it. And then I wanted to ask a question on tariffs. So -- in terms of -- we've got some change since you guys last reported with the Supreme Court ruling the DR, we run a trade surplus with the DR. And then I think that under the current kind of tariff guidelines being applied, it looks like those would expire at the end of July, if no new tariffs are slapped on.

了解。接著我想問一個關於關稅的問題。所以——就——自從你們上次財報以來有些變化，最高法院對DR的裁定之後，我們對DR是貿易順差。而且我想在目前適用的關稅指引下，如果沒有加徵新關稅，看起來這些會在7月底到期。

Can you give us a sense for what, on an annual basis, kind of the range of what you're paying in terms of tariffs under the kind of the current rate, what you paid? And then whether or not you expect to recover some of what you might have paid here in the last year or so.

你們能否讓我們了解一下，以年度來看，在目前稅率下你們支付的關稅大概落在什麼範圍、你們實際支付了多少？以及你們是否預期能追回過去一年左右已支付的一部分？

I refer to my tariff expert to Andy. Okay.

我把這題交給我的關稅專家Andy。好。

So Jeremy, just from a tariff perspective, so I mean we're at 10% now. We were preruling EBIT rates were 10% for us. We were the baseline range. We can't predict what, if anything, will happen legislatively with Congress if they're going to make any of these existing tariffs permanent. We are going through the process of the refund claim like many companies are.

所以Jeremy，就關稅角度來看，我們現在是10%。在裁定之前，我們的稅率對我們來說是10%。我們是在基準區間。我們無法預測國會在立法上會發生什麼、是否會把現有的這些關稅永久化。我們正像許多公司一樣，進行退稅申請流程。

So the portal opened up, I believe, a week or so ago, so we're in the process of submitting our plans. On average, our TAV cost was running about just under $2 million, I would say, on an annual basis at that 10% level. We have -- the bulk of our tariff is the movement of goods from the DR up to the US. We have to a less extent, importing directly into the US since most of the manufacturing happens in the DR. But as of now, we wouldn't expect our TAF exposure to increase from where it is today. And some legislation potentially the deal to go back to where we were pre-liberation day to zero. So let's wait and see for us.

所以入口網站我相信大概一週左右前開放了，我們正在提交我們的資料。平均而言，在10%水準下，我們的TAV成本按年大概略低於200萬美元。我們的關稅大宗是把貨物從DR運到美國。相較之下，直接進口到美國的比例較小，因為大部分製造都在DR完成。但就目前而言，我們不預期我們的TAF曝險會比今天更高。而某些立法可能會讓情況回到我們在「解放日」之前的水準，也就是零。所以我們就拭目以待。

Great. Thanks for taking my question.

很好。謝謝你回答我的問題。

Lance Vitanza, TD Cowen.

Lance Vitanza，TD Cowen。

Thank you. Let me start just to go back to the equipment revenue and the discounting. And I understand that the discounting is great, not just for the margin, but for gross profit dollars, but -- is it going to create a drag on recurring service revenues in either Q4 or next year? I feel like we've kind of been talking around this question, but I just want to ask you real direct.

謝謝。我先回到設備營收與折扣的問題。我理解折扣降低不僅對毛利率有利，對毛利額也有幫助，但——這會不會在Q4或明年對經常性服務營收造成拖累？我覺得我們一直在繞著這個問題談，但我想直接問得很明確。

No. It won't. The discounting -- whatever discounting we've done or haven't done, it's never around radios. Radios is what gives us the recurring it's almost unaffected. Radio, people want them. No, that's not an issue in the least.

不會。不會的。折扣——不管我們做了或沒做任何折扣，都從來不是針對無線電產品。無線電產品帶來的是我們的經常性收入，幾乎不受影響。無線電產品，大家都想要。不，這完全不是問題。

Very good. Thank you. Okay. So just a couple of questions on cash flow. The first is I've consistently been overestimating your working capital as a use of cash. And it's surprising, just given the growth that we're seeing in the business, right? Normally, I would expect working capital to build more quickly given the growth that we're seeing here. So the question is, should we expect sort of like a catching up like a big uptick in working capital in either the fourth quarter of this year or perhaps next year?

很好。謝謝。好的。那我再問幾個關於現金流的問題。第一個是，我一直都高估了你們營運資金作為現金用途的金額。而這很令人意外，畢竟我們看到業務在成長，對吧？通常在我們看到這樣的成長下，我會預期營運資金會更快增加。所以問題是，我們是否應該預期今年第四季或可能明年，營運資金會出現某種追趕式的大幅上升？

Andy, you want to take that one?

Andy，你要回答這題嗎？

Yeah. I'm not sure I'm following that it's not growing at a rate we're expecting. Lance, I'm not sure what the --

是的。我不太確定我是否理解你說它沒有以我們預期的速度成長。Lance，我不太確定你指的是什麼——

Correct, right? I mean, so the working capital has been relatively flat. It's really not been consuming much cash. And so my question is, do you expect there to be a big bump up in the amount of working capital such that your cash flow is going to be negatively impacted in the fourth quarter of next year.

對，沒錯？我的意思是，營運資金一直相對持平。它其實沒有消耗太多現金。所以我的問題是，你是否預期營運資金會大幅增加，以致於你們的現金流在明年第四季會受到負面影響。

No, because I think we have done a much better job in the last 12, 18 months of managing inventory. So we're trying to manage the levels of inventory. We've worked out our inventory substantially from going back at tight probably two years ago. So from a use of cash perspective, I would expect us to not eat into our cash will continue to grow.

不會，因為我認為過去12到18個月，我們在庫存管理方面做得好很多。所以我們正努力管理庫存水位。我們已大幅消化庫存，回到大概兩年前非常緊的狀態。因此從現金用途的角度來看，我預期我們不會侵蝕現金，現金將會持續成長。

Okay. Great. And then last question for me, just again on the cash flow side of the settlement. I'm very glad that you got it behind you. I was surprised by the size of the payout given the lack of merit in these claims question. Does this sort of $16 million outflow, which I assume is coming in the current quarter. Does this put any pressure on the dividend or your ability to continue increasing the dividend or given the reduction maybe in litigation expense going forward, is it kind of a wash?

好的。很好。那最後一個問題，還是關於和解對現金流的影響。我很高興你們把這件事處理完了。考量到這些主張缺乏實質依據，我對賠付金額之大感到意外。這筆約1,600萬美元的現金流出，我假設會在本季發生。這會不會對股利造成壓力，或影響你們持續提高股利的能力？或者考量到未來訴訟費用可能下降，整體上算是互相抵銷？

We have $125 million in cash. So we could afford this. We don't love it, who loves it. It's -- in the end, it's good to get rid of it, but we can afford it. No, it's not going to affect our ability to do dividends. The one thing we did, we didn't increase it this round. You've been with us for a while. We've increased the amount of the dividend 3, 4, 5 times already. We kept it the same but there will be more increases down the road, and this company generates a lot of cash, so there's no issue on continuing dividends.

我們有1.25億美元現金。所以我們負擔得起。我們不喜歡這樣，誰會喜歡呢。——總之，把它解決掉是好事，但我們負擔得起。不，這不會影響我們發放股利的能力。我們做的一件事是，這一輪我們沒有調高。你跟我們一段時間了。我們已經把股利金額提高過3、4、5次了。我們這次維持不變，但未來還會再提高，而且這家公司產生大量現金，所以持續配息沒有問題。

And last question, I'm going to squeeze one more in. Someone earlier had asked about your stance towards M&A going forward. What about your stance towards share repurchase, given, as you point out, you got $125 million of cash.

最後一個問題，我再塞一題。剛才有人問到你們未來對併購（M&A）的立場。那在庫藏股回購方面，你們的立場如何？畢竟如你所說，你們有1.25億美元現金。

We don't like to mess with the float. But as you know, we've done it before, depending upon where the stock is, we could do it again. We have authorization, we have the money, but we don't need to do it. The stock is performing well, and I don't want to force anything I like where our float is at and so do a lot of our investors.

我們不喜歡去動流通股數。但如你所知，我們以前做過，視股價位置而定，我們也可能再做一次。我們有授權，也有資金，但我們不需要做。股價表現很好，我不想勉強做任何事；我喜歡我們目前的流通股數水準，很多投資人也一樣。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Thank you. And there are no further questions at this time. I'd now like to turn the call back over to Kevin Buchel, President and Chief Operating Officer, for closing comments.

謝謝。目前沒有其他問題。現在我想把電話交回給總裁兼營運長Kevin Buchel，請他做結語。

Thank you, Matt. Thank you, everybody, for participating in today's conference call. As always, should you have any further questions, feel free to call Dick, Andy, Fran or myself for further information. We thank you for your interest and support and we look forward to speaking to you all again in a few months to discuss NAPCO's fiscal Q4 and full year results. Thanks again.

謝謝你，Matt。謝謝各位參與今天的電話會議。一如往常，如果各位還有任何問題，歡迎致電Dick、Andy、Fran或我本人以取得更多資訊。感謝各位的關注與支持，我們期待在幾個月後再次與各位通話，討論NAPCO的第四財季及全年業績。再次感謝。

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

各位女士、先生，今天的會議到此結束。感謝各位參與，請掛斷電話線。