Napco Security Technologies, Inc. (NASDAQ:NSSC) Q2 2024 Earnings Call Transcript

We’re not saying we have to get every one of them. We’d love it. We’ve got to get our fair share. 750,000 out of the millions is not even a high percentage. So that’s what gives us confidence about hitting the goal.

Raj Sharma: Got it. And the growth in the recurring revenues, which products are contributing the most, which are contributing the least? Any sort of color on that?

Kevin Buchel: The Fire radios are the biggest contributor. That’s why you’re seeing the gross margin of 90%. Fire radios gets the most on a monthly basis compared to the others. The others are great, too. Fire leads to 90%. The others, maybe they lead to 80%, 82%, 83%. Not so bad. All good. But Fire is number one.

Raj Sharma: Got it. And then, the sell-through — last question for me. Sell-through at dealers, you said, is picking up. And I know because of the excess inventory issue for a couple of dealers, it was lagging the year-on-year. Overall, is it up 5% sell-through you think at dealers or up 10% now?

Kevin Buchel: I’d have to look at that, Raj. What I do know is it was much more in Q2 than Q1, but I’ll have to look to see where are we year to date. Probably up, given what I saw in Q2.

Raj Sharma: Overall, it’s up faster than what your quarterly year-on-year is exhibiting. Would that be fair to say?

Kevin Buchel: I think it’s fair to say that it’s up compared to what we expected. It’s happening faster. And on locking, it’s very good. And on intrusion, definitely up sequentially. Versus a year ago, I’d have to look.

Raj Sharma: Got it. That’s it for me. Thank you for answering my questions again.

Kevin Buchel: Thank you, Raj.

Raj Sharma: Congratulations on a good quarter. Thanks.

Operator: And there are no further questions at this time. I will turn the call back over to the CEO, Richard Soloway, for closing remarks.

Richard Soloway: Thank you, everyone, for participating in today’s conference call. As always, should you have any further questions, please 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 in a few months to discuss NAPCO’s fiscal Q3 results. Have a great day, everybody. Bye-bye.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for joining, and you may now disconnect your lines. Thank you.