Sierra Wireless, Inc.

Thank you all for standing by, and welcome to the Sierra Wireless Q1 2022 Earnings Conference Call. Please note that all lines will be in listen-only mode until the question and answer session of today's conference. If you ask a question over the phone by that time, you may press the star key followed by the number one. Please also note that today's call is being recorded. I'll now turn the call over to your host, David Climey. Sir, you may now begin.

Thanks and good afternoon, everybody. Thank you for joining today's conference call and webcast. On the call today are Phil Bryce, President and CEO, and Sam Cochran, our CFO. As a reminder, today's presentation is being webcast and will be available on our website following the call. Before we get started, I'll 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 should differ significantly from those expressed or implied by our forward-looking statements. Draw your attention to a longer discussion of our risk factors in our annual information forum and management's discussion and analysis, which can be found on CDAR and EDGAR, as well as other regulatory filings. This presentation should also be viewed in conjunction with our quarterly earnings release. With that, I'll now turn the call over to Phil for his quarterly update.

Thanks, David, and thanks, everyone, for joining us on the call today. We had a strong start to the year with total revenue of $173.0 million in the first quarter. Q1 revenue grew 60% year-over-year and 15% sequentially, well ahead of our guidance for the quarter. In the first quarter, we generated $8.6 million in adjusted earnings from continuing operations and $15.8 million in adjusted EBITDA, our most profitable quarter in more than three years. Our strong revenue and profit growth in Q1 were the result of solid customer demand, true execution in manufacturing operations, and our expanded product offerings, especially in 5G modules and routers, starting to ramp. We are seeing continued momentum in key IoT markets, including industrial, enterprise, energy, and first responder, as more companies are collecting business-critical data from the edge of the network. The COVID-19 pandemic has accelerated Industry 4.0, and customers are wanting to manage their equipment in the field to avoid costly downtime, monitor performance, and do important preventative maintenance. In Q1, our product revenue, which includes both modules and routers, was up 86% compared to last year. In modules, we had a strong increase in 4G shipments in the first quarter, and our 5G devices are continuing to ramp. We announced the availability of our next-gen 5G module, the EM92, which enables high-speed, low-latency connectivity for demanding industrial and enterprise networking use cases.