Greetings, and welcome to Spok Holdings, Inc. Quarter One 2022 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Lisa Fortuna. Thank you and over to you.

Hello everyone, and welcome to Spok Holdings' first quarter 2022 earnings call. I am joined by Vince Kelly, President and Chief Executive Officer; as well as Mike Wallace, Chief Financial Officer and Chief Operating Officer. I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Spok's future financial and business performance. Such statements may include estimates of revenue, expenses and income as well as other predictive statements or plans, which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results. Spok's actual results could differ materially from those anticipated in these forward-looking statements. Although, these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainties. Please review the Risk Factors section relating to our operations and the business environment, which are contained in our first quarter 2022 Form 10-Q and related documents, we expect to file with the Securities and Exchange Commission. Please note that, Spok assumes no obligation to update any forward-looking statements from past or present filings and conference calls. With that, I'll turn the call over to Vince.

Thank you, and good morning, everyone, and thank you for joining us this morning for our first quarter 2022 earnings call. Today, we will share an update on our strategic business plan that was announced back in February as well as our financial results for the quarter. I'll start by reviewing the agenda for today's call. The order will be as follows: we'll begin by providing an update on our strategic business plan; next, we'll provide an overview of our first quarter 2022 results; then, we will cover our current guidance for 2022 as well as an update on our one-time restructuring costs related to our strategic business shift; and finally, we'll conclude with a wrap-up. When we last reported in February, we shared with you a significant change in our strategic business plan in terms of our pivot away from Spok Go and toward a free cash flow-focused business model, featuring our wireless service line and our Care Connect solutions suite with the goal of returning capital to shareholders. This return of capital includes distributing our annual free cash flow, which will fund the majority of our dividend distributions going forward, supplemented by cash on our balance sheet. Spok is a company with no debt, a large cash balance, significant tax assets and is now, in a positive free cash flow posture going forward. On top of that, our current dividend yield is in excess of 16% and we expect to pay the current level of dividend well into the future. Today we will share with you how it's going. I know it's only been about two months but we are performing well against our internal targets and we expect to continue delivering results within our guidance. Additionally, I'd say morale is higher than it has been in the…

Thanks, Vince, and good morning everyone. I would like to now take a few minutes and provide a recap of our first quarter 2022 financial performance, which we reported earlier this morning. I encourage you to review our 10-Q when filed, as it contains significantly more information about our business operations and financial performance than we will cover on this call. For the first quarter of 2022, total GAAP revenue was $33.8 million compared to revenue of $36 million in 2021. Revenue for the quarter consisted of wireless revenue of $18.8 million and software revenue of $15 million. With respect to wireless revenue, first quarter 2022 revenue of $18.8 million compares to $20.1 million in 2021. This performance reflected a lower level of pager unit churn on a year-over-year basis. In fact, the net pager decline during the first quarter was 1.1%, one of our lowest quarterly declines. As we have stated previously, these continued strong trends in our wireless business are being driven by the combination of solid gross additions from our sales organization, continued minimization of churn with existing customers and maintaining stable unit pricing. Furthermore, as we progress in 2022 and 2023, we expect our new GenA pager, which was announced in late 2021, to be a significant factor in minimizing churn and maintaining average revenue per unit or ARPU. Moving on to software. Software revenue for the first quarter was $15 million, representing a 5.9% decrease from 2021. This decline was largely driven by our prior focus on Spok Go, which has now changed going forward. First quarter software maintenance revenue, the largest component of software revenue was $9.2 million versus $9.4 million in the same period of the prior year or 1.7% lower. Maintenance revenue being flat to down, continues to be in line with…

Thanks, Mike. I want to remind investors as we progress through our pivot, we have a long history and track record of running this company for free cash flow and returning capital to shareholders. This gives us confidence we will be successful in the execution of our strategic pivot. Since our creation in 2004, Spok has returned $630 million of our free cash flow to stockholders through a combination of dividends and share repurchases. We will continue to do so. As I mentioned upfront, our current dividend yield is very attractive and we expect to be able to pay that level for the foreseeable future as we focus on our new plan. Capital returned to stockholders in the first quarter of 2022 totaled $6.5 million in the form of the company's regular quarterly dividend of $0.3125 per share. This is an increase of $3.8 million over the first quarter of last year reflecting the new Spok dividend policy. As always the declaration and payment of future dividends is subject to the Board's discretion and will depend on financial and legal requirements and other considerations. As a reminder, the Board has authorized a share repurchase program of up to $10 million of the company's common stock. This authorization allows the company to return additional capital to shareholders by opportunistically repurchasing the company's shares. We will continue to evaluate our capital allocation strategy as Spok transitions to our strategic pivot during 2022 and beyond. Our balance sheet continues to remain strong with the cash, cash equivalents and short-term investment balance of $46.3 million as of March 31, 2022. We continue to operate as a debt-free company. Additionally, I'd like to remind everyone that we continue to remain committed to our mission of being a strategic partner of choice for enterprise-grade clinical communications…