Sierra Wireless, Inc.

Welcome to the Sierra Wireless fourth quarter and year-end 2021 conference call. I'll now turn the call over to David Climey, Vice President of Investor Relations.

Thanks and good afternoon, everybody. Thank you for joining today's conference call and webcast. On the call today are Phil Brace, President and CEO, and Sam Cochran, our CFO. As a reminder, today's presentations are being webcast and will be available on our website following the call. Before we get started, I will reference the company's Cautionary note regarding forward-looking statements. Today's presentation contains certain statements and information that are not based on historical facts and constitute forward-looking statements within the meaning of securities laws. These statements include our strategy goals, objectives, expectations, and commentary regarding the outlook for our business. Our forward-looking statements are based on a number of material assumptions which could prove to be significantly incorrect. Additionally, forward-looking statements are based on our management's current expectations, and we caution investors that forward-looking statements Particularly those that relate to longer periods of time are subject to substantial known and unknown material risks and uncertainties that could cause actual events or results to differ significantly from those expressed or implied by our forward-looking statements. I draw your attention to longer discussion of our risk factors in our annual information forum and management discussion and analysis, which can be found on CDAR and EDGAR, as well as other regulatory filings. This presentation should also be imbued in conjunction with our quarterly earnings release. With that, I will now turn the call over to Phil for his quarterly update.

Thanks, David, and thank you everyone for joining us on the call today. Total revenue in the fourth quarter was $149.9 million, and we generated $7.3 million in adjusted EBITDA ahead of our guidance. Adjusted net earnings was $1.1 million in the quarter, positive for the first time in two and a half years. We shipped more devices in the fourth quarter than any quarter in the preceding three years, excluding the automotive business that was sold in late 2020. In Q4, the Sierra team worked diligently with customers, partners, and suppliers as we delivered 24% year-over-year revenue growth and 82% sequential growth, enabling us to finish a challenging year on a positive note. Before I turn the call over to Sam to provide more details on the fourth quarter and year-end financials, I'd like to update you on our current manufacturing and supply chain situation and our view of the current end customer demand environment. From a manufacturing and supply chain standpoint, we said during our last conference call that we plan to add additional manufacturing capacity to achieve production diversity and manufacturing resiliency. We accomplished that by adding capacity to an existing facility and ramping up new production at a site in Mexico. The manufacturing lines at the Mexican facility are running at capacity, and we're building our 4G and 5G enterprise routers there so they can be quickly shipped into the US market. Combined with our existing Vietnamese facility, we now have three manufacturing locations, giving us improved flexibility with multi-factory production. This was a key factor in allowing us to build and ship product in Q4 for our customers globally. Regarding the industry-type supply chain environment, we decided last year to use our strong balance sheet and play offense, investing in parts and components to secure raw material supply. Our procurement team did an exceptional job with our partners and suppliers in the fourth quarter, which enabled us to respond to our customers' strong demand. Going forward, our strategy remains the same as we continue to make the necessary investments in parts and components so we can convert them into finished goods. That said, we continue to see long lead times for chips and components, and we believe the tight supply environment will be with us through 2022. COVID outbreaks continue to be a watch item, but we believe we're in a much better position with improved geographic diversity to mitigate the potential impact of the pandemic. Now, regarding the current demand environment, we entered 2022 with the strongest backlog in company history, and we continue to have solid demand for our devices and our services. We are seeing more customers wanting to add intelligence at the edge and doing more IoT monitoring in industrial, enterprise, energy and public safety markets. In modules, we're seeing great demand for our LPWA products, particularly in the infrastructure space with applications in smart meters, public lighting, and asset management. We're also seeing traction with our 5G modules in enterprise applications and industrial networking. In enterprise solutions, we are seeing strong demand across the board for our products in public safety, energy, and industrial IoT markets. including our RV gateways, our newest 4G, 5G, XR series, which is tracking to be the fastest ramping product line in our history. And demand for our flexible smart SIM connectivity offering is strong, with customers deploying IoT solutions in applications such as industrial monitoring, asset tracking, transportation, and security. I believe strongly that we are at the front end of a wave of demand as these markets will continue to grow for years to come, especially as more 5G applications emerge. At Sierra Wireless, we have a unique and strong position in the IoT market with modules, routers, and connectivity services. Given the current trends in IoT, combined with the current record backlog and our strong balance sheet, we are confident that we can grow profitably going forward. With that, I'll turn the call over to Sam for his review of the fourth quarter and year-end results.