Calix Reports First Quarter 2015 Financial Results

New Post Public Reply Private Reply Replies (0) Message Board

News Desk 2018

Apr 28, 2015 at 4:30 PM

PETALUMA, CA --(Marketwired - April 28, 2015) - Calix, Inc. ( NYSE : CALX ) today announced unaudited financial results for the first quarter ended March 28, 2015. Revenue for the first quarter of 2015 was $91.0 million, an increase of 6.1% compared to $85.8 million for the first quarter of 2014.

"Our first quarter results reflected strong operating performance as we continued to execute on our Unified Access vision and strengthened our leadership position in the broadband access market," said Carl Russo, Calix president and CEO. "Our new fiber-enabled GigaCenters continued to gain traction with orders from more than 200 domestic and international service provider customers since the product launch late last year," added Russo.

In a separate press release issued today, Calix announced that its board of directors has authorized a program to repurchase up to $40 million of its common stock. Please refer to that announcement for further information.

The company's non-GAAP net loss for the first quarter of 2015 was $3.4 million, or $(0.07) per basic and fully diluted share, compared to a non-GAAP net loss of $1.5 million, or $(0.03) per basic and fully diluted share, for the first quarter of 2014. A reconciliation of GAAP and non-GAAP results is included as part of this release.

The GAAP net loss for the first quarter of 2015 was $11.9 million, or $(0.23) per basic and diluted share, compared to a GAAP net loss of $10.0 million, or $(0.20) per basic and diluted share, for the first quarter of 2014. A reconciliation of our first quarter 2015 operating results from non-GAAP to GAAP is provided below:

Calix, Inc.
(Unaudited, in thousands, except per share data)
Three Months Ended March 28, 2015

		Non-GAAP			Stock-Based Compensation			Amortization of Intangible Assets			Acquisition-Related Costs			GAAP
Revenue		$	91,038		$	-		$	-		$	-		$	91,038
Cost of revenue			46,285			175			2,088			-			48,548
Gross profit			44,753			(175	)		(2,088	)		-			42,490
Gross margin			49.2	%		(0.2	)%		(2.3	)%		-	%		46.7	%
Operating expenses			48,148			3,487			2,552			190			54,377
Operating loss			(3,395	)		(3,662	)		(4,640	)		(190	)		(11,887	)
Interest and other income (expense), net			48			-			-			-			48
Loss before taxes			(3,347	)		(3,662	)		(4,640	)		(190	)		(11,839	)
Provision for income taxes			91			-			-			-			91
Net loss		$	(3,438	)	$	(3,662	)	$	(4,640	)	$	(190	)	$	(11,930	)
Weighted average shares used to compute net loss per common share:
	Basic and diluted		51,732			51,732			51,732			51,732			51,732
Net loss per common share:
	Basic and diluted	$	(0.07	)	$	(0.07	)	$	(0.09	)	$	-		$	(0.23	)

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 first quarter 2015 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 ( NYSE : CALX ) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enables communications service providers worldwide to transform their copper- and fiber-based networks and become the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com . For more information about gigabit networks, visit www.calix.com/gigabit/ .

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 costs, which the Company believes are not indicative of its core operating results. Acquisition-related costs include legal fees and associated expenses incurred under a pre-existing contract between Occam and its retained advisor in connection with the Occam acquisition. 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.

Forward-Looking Statements

Statements made in this press release and the earnings call referencing the press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, but are not limited to, the execution of a stock repurchase program. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to the risks described in our 2014 Form 10-K and our quarterly reports on Form 10-Q, each as filed with the SEC and available at www.sec.gov , particularly in the sections titled "Risk Factors." Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.

Calix, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)

			Three Months Ended
			March 28,			March 29,
			2015			2014
Revenue			$	91,038		$	85,820
Cost of revenue:
	Products and services ⁽¹⁾			46,460			46,806
	Amortization of intangible assets			2,088			2,088
		Total cost of revenue		48,548			48,894
Gross profit				42,490			36,926
Operating expenses:
	Research and development ⁽¹⁾			21,914			19,630
	Sales and marketing ⁽¹⁾			19,759			17,390
	General and administrative ⁽¹⁾			10,152			7,251
	Amortization of intangible assets			2,552			2,552
		Total operating expenses		54,377			46,823
Loss from operations				(11,887	)		(9,897	)
Interest and other income (expense), net:
	Interest income			379			4
	Interest expense			(379	)		(57	)
	Other income (expense), net			48			33
		Total interest and other income (expense), net		48			(20	)
Loss before provision for income taxes				(11,839	)		(9,917	)
Provision for income taxes				91			110
Net loss			$	(11,930	)	$	(10,027	)
Net loss per common share:
	Basic and diluted		$	(0.23	)	$	(0.20	)
Weighted average number of shares used to compute net loss per common share:
	Basic and diluted			51,732			50,271

⁽¹⁾ Includes stock-based compensation as follows:
	Cost of revenue		$	175		$	354
	Research and development			1,212			1,180
	Sales and marketing			1,425			1,368
	General and administrative			850			1,000
			$	3,662		$	3,902

Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands, except per share data)

		Three Months Ended
		March 28,			March 29,
		2015			2014
GAAP net loss		$	(11,930	)	$	(10,027	)
Adjustments to reconcile GAAP net loss to non-GAAP net loss:
	Stock-based compensation		3,662			3,902
	Amortization of intangible assets		4,640			4,640
	Acquisition-related costs		190			-
Non-GAAP net loss		$	(3,438	)	$	(1,485	)
Non-GAAP net loss per common share:
	Basic and diluted	$	(0.07	)	$	(0.03	)
Weighted average shares used to compute non-GAAP net loss per common share:
	Basic and diluted		51,732			50,271

Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)

			March 28,			December 31,
			2015			2014
ASSETS
Current assets:
	Cash and cash equivalents		$	29,618		$	48,829
	Marketable securities			68,157			62,850
	Restricted cash			-			295
	Accounts receivable, net			39,000			30,744
	Inventory			40,637			46,753
	Deferred cost of revenue			1,762			5,080
	Prepaid expenses and other current assets			10,779			12,936
		Total current assets		189,953			207,487
	Property and equipment, net			19,403			20,144
	Goodwill			116,175			116,175
	Intangible assets, net			20,539			25,179
	Other assets			1,113			1,236
		Total assets	$	347,183		$	370,221
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable		$	12,792		$	23,629
	Accrued liabilities			39,447			39,443
	Deferred revenue			9,036			12,722
		Total current liabilities		61,275			75,794
	Long-term portion of deferred revenue			19,428			19,393
	Other long-term liabilities			2,091			2,443
		Total liabilities		82,794			97,630
Stockholders' equity:
	Common stock			1,295			1,291
	Additional paid-in capital			805,525			801,810
	Accumulated other comprehensive income			89			80
	Accumulated deficit			(542,520	)		(530,590	)
		Total stockholders' equity		264,389			272,591
		Total liabilities and stockholders' equity	$	347,183		$	370,221

Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)

					Three Months Ended
					March 28,			March 29,
					2015			2014
Operating activities:
	Net loss				$	(11,930	)	$	(10,027	)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Depreciation and amortization				2,480			2,271
		Loss on retirement of property and equipment				10			-
		Amortization of intangible assets				4,640			4,640
		Amortization of premiums related to available-for-sale securities				287			-
		Stock-based compensation				3,662			3,902
		Changes in operating assets and liabilities:
			Restricted cash			295			-
			Accounts receivable, net			(8,256	)		(614	)
			Inventory			6,115			6,011
			Deferred cost of revenue			3,318			3,233
			Prepaid expenses and other assets			1,974			1,016
			Accounts payable			(10,836	)		(12,276	)
			Accrued liabilities			54			2,485
			Deferred revenue			(3,651	)		(5,811	)
			Other long-term liabilities			(59	)		(56	)
				Net cash used in operating activities		(11,897	)		(5,226	)
Investing activities:
	Purchases of property and equipment					(1,742	)		(1,908	)
	Purchases of marketable securities					(17,004	)		-
	Maturities of marketable securities					11,450			-
		Net cash used in investing activities				(7,296	)		(1,908	)
Financing activities:
	Proceeds from exercise of stock options					564			21
	Taxes paid for awards vested under equity incentive plans					(506	)		(473	)
			Net cash provided by (used in) financing activities			58			(452	)
Effect of exchange rate changes on cash and cash equivalents						(76	)		8
Net decrease in cash and cash equivalents						(19,211	)		(7,578	)
Cash and cash equivalents at beginning of period						48,829			82,747
Cash and cash equivalents at end of period					$	29,618		$	75,169

Investor Inquiries: David H. Allen 408-474-0080 David.Allen@calix.com William J. Atkins 408-474-0052 William.Atkins@calix.com

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Emdoor’s Rugged Devices Fuel Industry Growth Globally

Emdoor Information: A Sturdy Path in Rugged Computing Dive into the heart of the rugged computing terrain, and you may very well run into Emdoor Information—an 18-year-old titan from Shenzhen that’s carved its niche on the backs of rugged tablets, laptops, and handhelds. Publicly listed since 2023 on China’s A-share main board, Emdoor isn't just any player in this...

NARUTO Card Game Set for June 2027 Global Launch

Mark Your Calendars: Global Launch June 2027 They're rolling out a red carpet for nostalgia here, I tell ya! At the New York Comic Con, BANDAI announced a worldwide launch for the NARUTO CARD GAME in June 2027. We'll see pre-built decks starring your favorite shinobi and a mad sprint to collect with the new booster packs. Feels sort of like they’re summoning a jutsu...

Buying Land in Greeneville: Avoiding Costly Mistakes

Diving Headfirst into Raw Land Purchases Buying land isn't like your typical house flip in Greeneville, Tennessee. It's a whole different ballgame out there. You might think you're just purchasing a piece of Mother Earth, but you got to know there's more beneath the surface—quite literally—before you sign anything. You can go from a promising adventure to a...

AI Revenue Missteps Shake Semiconductor Stocks

Nervous Times for Semiconductor Stocks When the semiconductor sector started October like a high-speed train, I thought we might sail through this month without hitting turbulence. But then, in trotted some shaky AI revenue numbers, and bam, the whole sector took a hit off its October highs. The semiconductor stocks, led by giants like Taiwan Semiconductor Manufacturing...

Arrvel's Thermal Printers: Aiming at E-Com Sellers

Arrvel's Thermal Printing Push: An Overview No one would have pegged tiny thermal label printers as game-changers, but here we are. Arrvel's new lineup of thermal printers is shaking up the world for anyone who's ever had to slap on a shipping label or get inventory organized. They're targeting e-commerce folks and small businesses, which sounds like the right move as...

Southern Company Sparks Swift Power Restoration Post-Isaias

Well, when Mother Nature decides to throw a tantrum, it takes seasoned hands and savvy tech to clean up the mess. That's exactly what Southern Company is doing after Hurricane Isaias wreaked havoc on the Southeast. With their electric utilities—Alabama Power, Georgia Power, and Mississippi Power—hitting the ground running, they've already restored power to a whopping...

Young Visionaries Win Junior Medals at STARMUS VIII

Fresh from the Canary Islands' shores, STARMUS VIII has lifted the veil on two young powerhouses shaping tomorrow—Valeria Corrales and Aneeshwar Kunchala. These two have snagged coveted honors, crowning them as champions of their generation. Igniting Passion for Science and the Environment Valeria Corrales isn't just another face in the crowd; she’s the force behind a...

tm:rw Revolutionizes Retail with Live TikTok Studios

tm:rw Takes a Bold Step into Social Commerce Throw out whatever you've thought about traditional brick-and-mortar retail because tm:rw isn't just bending the rules—it's burning the book. Launching nine branded studio spaces at their Times Square flagship, tm:rw is blending live streaming with in-person shopping, all in sync with TikTok Shop. The experience is less about...

Retail Trading Platforms Report Record Growth in 2026

A Boom in Self-Directed Investing Times are changing, folks. More people than ever are taking finance into their own hands, wielding smartphones like fiscal swords in the name of self-directed investment. No middlemen, no fancy office, just straight-up trading from wherever you might be perched. Four major platforms now boast over 41 million funded accounts combined, each...

AI Drives Major Time Savings in Endoscopy Tech

AI in Endoscopy: Game-Changer or Gimmick? Stumbling across AnX Robotica's latest pitch about their NaviCam ProScan AI workflow, one can't help but feel a mix of curiosity and skepticism. With the stakes in medical tech sky-high, they've fired off some impressive stats that grab attention. We're talking about cutting small-bowel capsule review times by a whopping...