Welcome!

News Feed Item

Calix Reports First Quarter 2014 Financial Results

PETALUMA, CA -- (Marketwired) -- 04/29/14 -- Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the first quarter ended March 29, 2014. Revenue for the first quarter of 2014 was $85.8 million, a decrease of 5.2% compared to $90.5 million for the first quarter of 2013.

"While the first quarter started off slowly as expected, we saw increasing demand as the quarter progressed," said Carl Russo, president and CEO of Calix. "Growing demand for gigabit services and the recently completed integration of E-Series solutions with the BLM 1500 platform and the EntriView management system allowed us to make solid progress in expanding our customer footprint both domestically and internationally during the first quarter."

Non-GAAP net loss for the first quarter of 2014 was $1.5 million, or $(0.03) per fully diluted share. Non-GAAP net income was $3.2 million, or $0.06 per fully diluted share, for the first quarter of 2013. A reconciliation of GAAP and non-GAAP results is included as part of this release.

GAAP net loss for the first quarter of 2014 was $10.0 million, or $(0.20) per basic and diluted share, compared to a GAAP net loss of $6.2 million, or $(0.13) per basic and diluted share for the first quarter of 2013. A reconciliation of our first quarter 2014 operating results from non-GAAP to GAAP is provided below:


                                Calix, Inc.
              (Unaudited, in thousands, except per share data)
                     Three Months Ended March 29, 2014

                                                     Amortization
                                                          of
                                        Stock-Based   Intangible
                             Non-GAAP  Compensation     Assets       GAAP
                             --------  ------------  ------------  --------
Revenue                      $ 85,820  $          -  $          -  $ 85,820
Cost of revenue                46,452           354         2,088    48,894
                             --------  ------------  ------------  --------
Gross profit                   39,368          (354)       (2,088)   36,926
Gross margin                     45.9%         -0.4%         -2.4%     43.0%
Operating expenses             40,723         3,548         2,552    46,823
                             --------  ------------  ------------  --------
Operating loss                 (1,355)       (3,902)       (4,640)   (9,897)
Interest and other income
 (expense), net                   (20)            -             -       (20)
                             --------  ------------  ------------  --------
Loss before taxes              (1,375)       (3,902)       (4,640)   (9,917)
Provision for income taxes        110             -             -       110
                             --------  ------------  ------------  --------
Net loss                     $ (1,485) $     (3,902) $     (4,640) $(10,027)
                             ========  ============  ============  ========
Weighted average shares used
 to compute net loss per
 common share:
  Basic                        50,271        50,271        50,271    50,271
                             ========  ============  ============  ========
  Diluted                      50,271        50,271        50,271    50,271
                             ========  ============  ============  ========
Net loss per common share:
  Basic                      $  (0.03) $      (0.08) $      (0.09) $  (0.20)
                             ========  ============  ============  ========
  Diluted                    $  (0.03) $      (0.08) $      (0.09) $  (0.20)
                             ========  ============  ============  ========

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 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 (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.

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
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
Revenue                                                $  85,820  $  90,548
Cost of revenue:
    Products and services (1)                             46,806     47,345
    Amortization of intangible assets                      2,088      2,088
                                                       ---------  ---------
      Total cost of revenue                               48,894     49,433
                                                       ---------  ---------
Gross profit                                              36,926     41,115
Operating expenses:
    Research and development (1)                          19,630     20,171
    Sales and marketing (1)                               17,390     15,801
    General and administrative (1)                         7,251      8,131
    Amortization of intangible assets                      2,552      2,552
                                                       ---------  ---------
      Total operating expenses                            46,823     46,655
                                                       ---------  ---------
Loss from operations                                      (9,897)    (5,540)
Interest and other income (expense), net:
    Interest income                                            4          1
    Interest expense                                         (57)       (28)
    Other income (expense), net                               33       (279)
                                                       ---------  ---------
Loss before provision for income taxes                    (9,917)    (5,846)
                                                       ---------  ---------
Provision for income taxes                                   110        357
                                                       ---------  ---------
Net loss                                               $ (10,027) $  (6,203)
                                                       =========  =========
Net loss per common share:
      Basic and diluted                                $   (0.20) $   (0.13)
                                                       =========  =========
Weighted average number of shares used to compute net
 loss per common share:
      Basic and diluted                                   50,271     48,911
                                                       =========  =========

------------------------------------------------------

(1) Includes stock-based compensation as follows:
    Cost of revenue                                    $     354  $     351
    Research and development                               1,180      1,186
    Sales and marketing                                    1,368      1,279
    General and administrative                             1,000      1,903
                                                       ---------  ---------
                                                       $   3,902  $   4,719
                                                       =========  =========


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

                                                        Three Months Ended
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
GAAP net loss                                          $ (10,027) $  (6,203)
Adjustments to reconcile GAAP net loss to non-GAAP net
 income (loss):
Stock-based compensation                                   3,902      4,719
Amortization of intangible assets                          4,640      4,640
                                                       ---------  ---------
Non-GAAP net income (loss)                             $  (1,485) $   3,156
                                                       =========  =========
Non-GAAP net income (loss) per common share:
  Basic                                                $   (0.03) $    0.06
                                                       =========  =========
  Diluted                                              $   (0.03) $    0.06
                                                       =========  =========
Weighted average shares used to compute non-GAAP net
 income (loss) per common share - Basic                   50,271     48,911
                                                       =========  =========
Weighted average shares used to compute non-GAAP net
 income per common share - Diluted (1)                    50,271     49,422
                                                       =========  =========

(1) Includes the dilutive effect of outstanding stock options, restricted
stock units and ESPP.


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

                                                 March 29,     December 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $      75,169  $      82,747
  Restricted cash                                        295            295
  Accounts receivable, net                            44,134         43,520
  Inventory                                           45,060         51,071
  Deferred cost of revenue                            17,843         21,076
  Prepaid expenses and other current assets            4,869          5,757
                                               -------------  -------------
    Total current assets                             187,370        204,466
  Property and equipment, net                         17,122         17,473
  Goodwill                                           116,175        116,175
  Intangible assets, net                              39,100         43,740
  Other assets                                         1,618          1,745
                                               -------------  -------------
    Total assets                               $     361,385  $     383,599
                                               =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      10,887  $      23,163
  Accrued liabilities                                 34,570         32,075
  Deferred revenue                                    29,013         34,862
                                               -------------  -------------
    Total current liabilities                         74,470         90,100
  Long-term portion of deferred revenue               18,469         18,431
  Other long-term liabilities                          1,090          1,145
                                               -------------  -------------
    Total liabilities                                 94,029        109,676
                                               -------------  -------------
Stockholders' equity:
  Common stock                                         1,258          1,256
  Additional paid-in capital                         785,700        782,253
  Accumulated other comprehensive income                 201            190
  Accumulated deficit                               (519,803)      (509,776)
                                               -------------  -------------
    Total stockholders' equity                       267,356        273,923
                                               -------------  -------------
    Total liabilities and stockholders' equity $     361,385  $     383,599
                                               =============  =============


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

                                                        Three Months Ended
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
Operating activities:
Net loss                                               $ (10,027) $  (6,203)
Adjustments to reconcile net loss to net cash (used
 in) provided by operating activities:
  Depreciation and amortization                            2,271      2,854
  Loss on retirement of property and equipment                 -        542
  Amortization of intangible assets                        4,640      4,640
  Stock-based compensation                                 3,902      4,719
Changes in operating assets and liabilities:
  Accounts receivable, net                                  (614)   (11,198)
  Inventory                                                6,011      4,050
  Deferred cost of revenue                                 3,233     (5,340)
  Prepaid expenses and other assets                        1,016         74
  Accounts payable                                       (12,276)    (3,131)
  Accrued liabilities                                      2,485        482
  Deferred revenue                                        (5,811)    10,449
  Other long-term liabilities                                (56)       442
                                                       ---------  ---------
    Net cash (used in) provided by operating
     activities                                           (5,226)     2,380
                                                       ---------  ---------
Investing activities:
  Purchase of property and equipment                      (1,908)    (1,326)
                                                       ---------  ---------
    Net cash used in investing activities                 (1,908)    (1,326)
                                                       ---------  ---------
Financing activities:
  Proceeds from exercise of stock options                     21         42
  Taxes withheld upon vesting of performance
   restricted stock units                                   (473)         -
                                                       ---------  ---------
    Net cash (used in) provided by financing
     activities                                             (452)        42
                                                       ---------  ---------
Effect of exchange rate changes on cash and cash
 equivalents                                                   8        (32)
Net (decrease) increase in cash and cash equivalents      (7,578)     1,064
Cash and cash equivalents at beginning of period          82,747     46,995
                                                       ---------  ---------
Cash and cash equivalents at end of period             $  75,169  $  48,059
                                                       =========  =========

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...