PETALUMA, CA--(Marketwired - Oct 29, 2014) - Calix, Inc. (
"In addition to achieving record revenues in the quarter, we continued to innovate and expand our product line and our customer base by launching two entirely new solutions," said Carl Russo, Calix president and CEO.
"We launched our new GigaCenters, the industry's first fiber-based products to unleash the power of Carrier-Class Wi-Fi in the home; and the Compass Open Link Cable software solution, allowing cable operators to deliver gigabit services over fiber while continuing to use traditional back office and DOCSIS command and control procedures. These ground-breaking offerings enable our customers to extend the gigabit experience to their subscribers at an accelerated pace and in a cost-effective manner."
The company's non-GAAP net income for the third quarter of 2014 was $4.6 million, or $0.09 per fully diluted share, compared to a non-GAAP net income of $10.2 million, or $0.20 per fully diluted share, for the third quarter of 2013. A reconciliation of GAAP and non-GAAP results is included as part of this release.
The GAAP net loss for the third quarter of 2014 was $3.8 million, or $(0.08) per basic and diluted share, compared to a GAAP net income of $0.5 million, or $0.01 per basic and diluted share, for the third quarter of 2013. A reconciliation of our third quarter 2014 operating results from non-GAAP to GAAP is provided below:
| Calix, Inc. | ||||||||||||||||
| (Unaudited, in thousands, except per share data) | ||||||||||||||||
| Three Months Ended September 27, 2014 | ||||||||||||||||
| Non-GAAP | Stock-Based Compensation | Amortization of Intangible Assets | GAAP | |||||||||||||
| Revenue | $ | 105,769 | $ | -- | $ | -- | $ | 105,769 | ||||||||
| Cost of revenue | 58,394 | 206 | 2,089 | 60,689 | ||||||||||||
| Gross profit | 47,375 | (206 | ) | (2,089 | ) | 45,080 | ||||||||||
| Gross margin | 44.8 | % | -- | -- | 42.6 | % | ||||||||||
| Operating expenses | 42,665 | 3,607 | 2,552 | 48,824 | ||||||||||||
| Operating income (loss) | 4,710 | (3,813 | ) | (4,641 | ) | (3,744 | ) | |||||||||
| Interest and other income (expense), net | 11 | -- | -- | 11 | ||||||||||||
| Income (loss) before taxes | 4,721 | (3,813 | ) | (4,641 | ) | (3,733 | ) | |||||||||
| Provision for income taxes | 115 | -- | -- | 115 | ||||||||||||
| Net income (loss) | $ | 4,606 | $ | (3,813 | ) | $ | (4,641 | ) | $ | (3,848 | ) | |||||
| Weighted average diluted shares used to compute non-GAAP net income (loss) per common share | 51,552 | 51,552 | 51,552 | |||||||||||||
| Non-GAAP net income (loss) per diluted share | $ | 0.09 | $ | (0.07 | ) | $ | (0.09 | ) | ||||||||
| Weighted average basic and diluted shares used to compute GAAP net loss per common share | 51,048 | |||||||||||||||
| GAAP net loss per share | $ | (0.08 | ) | |||||||||||||
Conference Call
In conjunction with this announcement, Calix will host a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today to discuss its third quarter 2014 financial results. A live audio webcast and replay of the call will be available in the Investor Relations section of the Calix web site at http://investor-relations.calix.com/ .
Live call access information: Dial-in number: (877) 407-4019 (U.S.) or (201) 689-8337 (outside the U.S.)
The conference call and webcast will include forward-looking information.
About Calix
Calix (
Use of Non-GAAP Financial Information
The Company uses certain non-GAAP financial measures in this press release to supplement its consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP measures include non-GAAP net income (loss) and non-GAAP basic and diluted income (loss) per share. These non-GAAP measures are provided to enhance the reader's understanding of the Company's operating performance as they primarily exclude certain non-cash charges for stock-based compensation and amortization of acquisition-related intangible assets, and non-recurring acquisition-related and other expenses, which the Company believes are not indicative of its core operating results. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company's ongoing business performance and management uses these non-GAAP measures to evaluate financial results and to establish operational goals. The presentation of these non-GAAP measures is not meant to be a substitute for results presented in accordance with GAAP, but rather should be evaluated in conjunction with those GAAP results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in this press release. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
| Calix, Inc. | ||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||
| (Unaudited, in thousands, except per share data) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 27, 2014 | September 28, 2013 | September 27, 2014 | September 28, 2013 | |||||||||||||||
| Revenue | $ | 105,769 | $ | 103,628 | $ | 289,594 | $ | 288,615 | ||||||||||
| Cost of revenue: | ||||||||||||||||||
| Products and services (1) | 58,600 | 54,132 | 156,981 | 151,323 | ||||||||||||||
| Amortization of intangible assets | 2,089 | 2,089 | 6,265 | 6,265 | ||||||||||||||
| Total cost of revenue | 60,689 | 56,221 | 163,246 | 157,588 | ||||||||||||||
| Gross profit | 45,080 | 47,407 | 126,348 | 131,027 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development (1) | 19,930 | 19,777 | 59,104 | 59,983 | ||||||||||||||
| Sales and marketing (1) | 18,717 | 16,612 | 54,562 | 49,492 | ||||||||||||||
| General and administrative (1) | 7,625 | 8,478 | 22,557 | 24,293 | ||||||||||||||
| Amortization of intangible assets | 2,552 | 2,552 | 7,656 | 7,656 | ||||||||||||||
| Total operating expenses | 48,824 | 47,419 | 143,879 | 141,424 | ||||||||||||||
| Loss from operations | (3,744 | ) | (12 | ) | (17,531 | ) | (10,397 | ) | ||||||||||
| Interest and other income (expense), net: | ||||||||||||||||||
| Interest income | 52 | 2 | 86 | 4 | ||||||||||||||
| Interest expense | (59 | ) | (24 | ) | (174 | ) | (94 | ) | ||||||||||
| Other income (expense), net | 18 | 4 | 121 | (318 | ) | |||||||||||||
| Loss before provision for income taxes | (3,733 | ) | (30 | ) | (17,498 | ) | (10,805 | ) | ||||||||||
| Provision for (benefit from) income taxes | 115 | (574 | ) | 328 | 7 | |||||||||||||
| Net (loss) income | $ | (3,848 | ) | $ | 544 | $ | (17,826 | ) | $ | (10,812 | ) | |||||||
| Net (loss) income per common share: | ||||||||||||||||||
| Basic | $ | (0.08 | ) | $ | 0.01 | $ | (0.35 | ) | $ | (0.22 | ) | |||||||
| Diluted | $ | (0.08 | ) | $ | 0.01 | $ | (0.35 | ) | $ | (0.22 | ) | |||||||
| Weighted average number of shares used to compute | ||||||||||||||||||
| net (loss) income per common share: | ||||||||||||||||||
| Basic | 51,048 | 49,694 | 50,635 | 49,255 | ||||||||||||||
| Diluted | 51,048 | 51,142 | 50,635 | 49,255 | ||||||||||||||
| (1) Includes stock-based compensation as follows: | ||||||||||||||||||
| Cost of revenue | $ | 206 | $ | 362 | $ | 914 | $ | 1,090 | ||||||||||
| Research and development | 1,207 | 1,179 | 3,693 | 3,665 | ||||||||||||||
| Sales and marketing | 1,316 | 1,395 | 4,146 | 4,138 | ||||||||||||||
| General and administrative | 1,084 | 2,035 | 3,366 | 6,072 | ||||||||||||||
| $ | 3,813 | $ | 4,971 | $ | 12,119 | $ | 14,965 | |||||||||||
| Calix, Inc. | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results | ||||||||||||||||
| (Unaudited, in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 27, | September 28, | September 27, | September 28, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| GAAP net (loss) income | $ | (3,848 | ) | $ | 544 | $ | (17,826 | ) | $ | (10,812 | ) | |||||
| Adjustments to reconcile GAAP net (loss) income to | ||||||||||||||||
| non-GAAP net income: | ||||||||||||||||
| Stock-based compensation | 3,813 | 4,971 | 12,119 | 14,965 | ||||||||||||
| Amortization of intangible assets | 4,641 | 4,641 | 13,921 | 13,921 | ||||||||||||
| Non-GAAP net income | $ | 4,606 | 10,156 | 8,214 | 18,074 | |||||||||||
| Non-GAAP net income per common share: | ||||||||||||||||
| Basic | $ | 0.09 | $ | 0.20 | $ | 0.16 | $ | 0.37 | ||||||||
| Diluted | $ | 0.09 | $ | 0.20 | $ | 0.16 | $ | 0.36 | ||||||||
| Weighted average shares used to compute non-GAAPnet income per common share - basic | 51,048 | 49,694 | 50,635 | 49,255 | ||||||||||||
| Weighted average shares used to compute non-GAAPnet income per common share - diluted (1) | 51,552 | 51,142 | 51,122 | 50,218 | ||||||||||||
| (1) Includes the dilutive effect of outstanding stock options, restricted stock units and ESPP. | ||||||||||||||||
| Calix, Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (Unaudited, in thousands) | ||||||||||
| September 27, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 39,399 | $ | 82,747 | ||||||
| Marketable securities | 48,400 | -- | ||||||||
| Restricted cash | 295 | 295 | ||||||||
| Accounts receivable, net | 42,781 | 43,520 | ||||||||
| Inventory | 43,845 | 51,071 | ||||||||
| Deferred cost of revenue | 11,334 | 21,076 | ||||||||
| Prepaid expenses and other current assets | 6,469 | 5,757 | ||||||||
| Total current assets | 192,523 | 204,466 | ||||||||
| Property and equipment, net | 20,159 | 17,473 | ||||||||
| Goodwill | 116,175 | 116,175 | ||||||||
| Intangible assets, net | 29,820 | 43,740 | ||||||||
| Other assets | 1,346 | 1,745 | ||||||||
| Total assets | $ | 360,023 | $ | 383,599 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 13,258 | $ | 23,163 | ||||||
| Accrued liabilities | 37,579 | 32,075 | ||||||||
| Deferred revenue | 20,095 | 34,862 | ||||||||
| Total current liabilities | 70,932 | 90,100 | ||||||||
| Long-term portion of deferred revenue | 18,807 | 18,431 | ||||||||
| Other long-term liabilities | 1,743 | 1,145 | ||||||||
| Total liabilities | 91,482 | 109,676 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 1,280 | 1,256 | ||||||||
| Additional paid-in capital | 794,724 | 782,253 | ||||||||
| Accumulated other comprehensive income | 139 | 190 | ||||||||
| Accumulated deficit | (527,602 | ) | (509,776 | ) | ||||||
| Total stockholders' equity | 268,541 | 273,923 | ||||||||
| Total liabilities and stockholders' equity | $ | 360,023 | $ | 383,599 | ||||||
| Calix, Inc. | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (Unaudited, in thousands) | |||||||||||
| Nine Months Ended | |||||||||||
| September 27, | September 28, | ||||||||||
| 2014 | 2013 | ||||||||||
| Operating activities: | |||||||||||
| Net loss | $ | (17,826 | ) | $ | (10,812 | ) | |||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 6,772 | 7,767 | |||||||||
| Loss on retirement of property and equipment | 41 | 564 | |||||||||
| Amortization of intangible assets | 13,921 | 13,921 | |||||||||
| Amortization of premiums related to available-for-sale securities | 302 | -- | |||||||||
| Gain on sale of available-for-sale securities | (1 | ) | -- | ||||||||
| Stock-based compensation | 12,119 | 14,965 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Restricted cash | -- | (972 | ) | ||||||||
| Accounts receivable, net | 739 | 5,098 | |||||||||
| Inventory | 7,226 | 3,906 | |||||||||
| Deferred cost of revenue | 9,742 | (5,749 | ) | ||||||||
| Prepaid expenses and other assets | (315 | ) | (466 | ) | |||||||
| Accounts payable | (9,904 | ) | 1,269 | ||||||||
| Accrued liabilities | 5,520 | (1,224 | ) | ||||||||
| Deferred revenue | (14,391 | ) | 8,302 | ||||||||
| Other long-term liabilities | 597 | 238 | |||||||||
| Net cash provided by operating activities | 14,542 | 36,807 | |||||||||
| Investing activities: | |||||||||||
| Purchase of property and equipment | (9,481 | ) | (5,475 | ) | |||||||
| Purchase of marketable securities | (49,356 | ) | -- | ||||||||
| Proceeds from sale of marketable securities | 615 | -- | |||||||||
| Net cash used in investing activities | (58,222 | ) | (5,475 | ) | |||||||
| Financing activities: | |||||||||||
| Proceeds from exercise of stock options | 429 | 671 | |||||||||
| Proceeds from employee stock purchase plan | 2,453 | 2,464 | |||||||||
| Taxes paid for awards vested under equity incentive plans | (2,505 | ) | (2,102 | ) | |||||||
| Payments for debt issuance costs | -- | (301 | ) | ||||||||
| Net cash provided by financing activities | 377 | 732 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (45 | ) | 65 | ||||||||
| Net (decrease) increase in cash and cash equivalents | (43,348 | ) | 32,129 | ||||||||
| Cash and cash equivalents at beginning of period | 82,747 | 46,995 | |||||||||
| Cash and cash equivalents at end of period | $ | 39,399 | $ | 79,124 | |||||||
Investor Inquiries: David H. Allen 408-474-0080 David.Allen@Calix.com
