Welcome!

News Feed Item

Calix Reports Second Quarter 2014 Financial Results

PETALUMA, CA -- (Marketwired) -- 07/29/14 -- Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the second quarter ended June 28, 2014. Revenue for the second quarter of 2014 was $98.0 million, an increase of 3.8% compared to $94.4 million for the second quarter of 2013.

"We continue to make solid progress expanding our domestic and international customer footprint and achieved our highest level of sales for a second fiscal quarter," said Carl Russo, Calix president and CEO. "Service providers of all types are pursuing device-enabled subscribers who are increasingly accessing cloud-based content and applications. Calix Unified Access solutions are architected to be flexible, feature-rich and cost-effective in order to meet the demanding requirements of our service provider customers and their subscribers."

The company's non-GAAP net income for the second quarter of 2014 was $5.1 million, or $0.10 per fully diluted share, compared to a non-GAAP net income of $4.8 million, or $0.10 per fully diluted share, for the second quarter of 2013. A reconciliation of GAAP and non-GAAP results is included as part of this release.

The GAAP net loss for the second quarter of 2014 was $4.0 million, or $(0.08) per basic and diluted share, compared to a GAAP net loss of $5.2 million, or $(0.10) per basic and diluted share, for the second quarter of 2013. A reconciliation of our second quarter 2014 operating results from non-GAAP to GAAP is provided below:


                                Calix, Inc.
              (Unaudited, in thousands, except per share data)
                      Three Months Ended June 28, 2014

                                                 Amortization
                                                      of
                                    Stock-Based   Intangible
                       Non-GAAP    Compensation     Assets         GAAP
                     ------------  ------------  ------------  ------------
Revenue              $     98,005  $         --  $         --  $     98,005
Cost of revenue            51,221           354         2,088        53,663
                     ------------  ------------  ------------  ------------
Gross profit               46,784          (354)       (2,088)       44,342
Gross margin                 47.7%           --            --          45.2%
Operating expenses         41,630         4,050         2,552        48,232
                     ------------  ------------  ------------  ------------
Operating income
 (loss)                     5,154        (4,404)       (4,640)       (3,890)
Interest and other
 income (expense),
 net                           42            --            --            42
                     ------------  ------------  ------------  ------------
Income (loss) before
 taxes                      5,196        (4,404)       (4,640)       (3,848)
Provision for income
 taxes                        103            --            --           103
                     ------------  ------------  ------------  ------------
Net income (loss)    $      5,093  $     (4,404) $     (4,640) $     (3,951)
                     ============  ============  ============  ============
Weighted average
 diluted shares used
 to compute non-GAAP
 net income (loss)
 per common share          50,961        50,961        50,961
                     ============  ============  ============
Non-GAAP net income
 (loss) per diluted
 share               $       0.10  $      (0.09) $      (0.09)
                     ============  ============  ============
Weighted average
 basic and diluted
 shares used to
 compute GAAP net
 loss per common
 share                                                               50,573
                                                               ============
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 second 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       Six Months Ended
                             ----------------------  ----------------------
                              June 28,    June 29,    June 28,    June 29,
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
Revenue                      $   98,005  $   94,439  $  183,825  $  184,987
Cost of revenue:
  Products and services (1)      51,575      49,846      98,381      97,191
  Amortization of intangible
   assets                         2,088       2,088       4,176       4,176
                             ----------  ----------  ----------  ----------
    Total cost of revenue        53,663      51,934     102,557     101,367
                             ----------  ----------  ----------  ----------
Gross profit                     44,342      42,505      81,268      83,620
Operating expenses:
  Research and development
   (1)                           19,544      20,035      39,174      40,206
  Sales and marketing (1)        18,455      17,079      35,845      32,880
  General and administrative
   (1)                            7,681       7,684      14,932      15,815
  Amortization of intangible
   assets                         2,552       2,552       5,104       5,104
                             ----------  ----------  ----------  ----------
    Total operating expenses     48,232      47,350      95,055      94,005
                             ----------  ----------  ----------  ----------
Loss from operations             (3,890)     (4,845)    (13,787)    (10,385)
  Interest and other income
   (expense), net:
  Interest income                    30           1          34           2
  Interest expense                  (58)        (42)       (115)        (70)
Other income (expense), net          70         (43)        103        (322)
                             ----------  ----------  ----------  ----------
Loss before provision for
 income taxes                    (3,848)     (4,929)    (13,765)    (10,775)
                             ----------  ----------  ----------  ----------
Provision for income taxes          103         224         213         581
                             ----------              ----------
Net loss                     $   (3,951) $   (5,153) $  (13,978) $  (11,356)
                             ==========  ==========  ==========  ==========
Net loss per common share:
    Basic and diluted        $    (0.08) $    (0.10) $    (0.28) $    (0.23)
                             ==========  ==========  ==========  ==========
Weighted average number of
 shares used to compute net
 loss per common share:
    Basic and diluted            50,573      49,153      50,425      49,034
                             ==========  ==========  ==========  ==========

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

(1) Includes stock-based
 compensation as follows:
    Cost of revenue          $      354  $      377  $      708  $      728
    Research and development      1,306       1,300       2,486       2,486
    Sales and marketing           1,462       1,464       2,830       2,743
    General and
     administrative               1,282       2,134       2,282       4,037
                             ----------  ----------  ----------  ----------
                             $    4,404  $    5,275  $    8,306  $    9,994
                             ==========  ==========  ==========  ==========



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

                               Three Months Ended       Six Months Ended
                             ----------------------  ----------------------
                              June 28,    June 29,    June 28,    June 29,
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------
GAAP net loss                $   (3,951) $   (5,153) $  (13,978) $  (11,356)
Adjustments to reconcile GAAP
 net loss to non-GAAP net
 income:
Stock-based compensation          4,404       5,275       8,306       9,994
Amortization of intangible
 assets                           4,640       4,640       9,280       9,280
                             ----------  ----------  ----------  ----------
Non-GAAP net income               5,093       4,762       3,608       7,918
                             ==========  ==========  ==========  ==========
Non-GAAP net income per
 common share:
  Basic                      $     0.10  $     0.10  $     0.07  $     0.16
                             ==========  ==========  ==========  ==========
  Diluted                    $     0.10  $     0.10  $     0.07  $     0.16
                             ==========  ==========  ==========  ==========
Weighted average shares used
 to compute non-GAAP net
 income per common share -
 Basic                           50,573      49,153      50,425      49,034
                             ==========  ==========  ==========  ==========
Weighted average shares used
 to compute non-GAAP net
 income per common share -
 Diluted (1)                     50,961      50,073      50,904      49,751
                             ==========  ==========  ==========  ==========

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



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

                                                   June 28,    December 31,
                                                     2014          2013
                                                 ------------  ------------
ASSETS
Current assets:
  Cash and cash equivalents                      $     32,543  $     82,747
  Marketable securities                                46,439            --
  Restricted cash                                         295           295
  Accounts receivable, net                             47,330        43,520
  Inventory                                            45,888        51,071
  Deferred cost of revenue                             15,957        21,076
  Prepaid expenses and other current assets             5,038         5,757
                                                 ------------  ------------
    Total current assets                              193,490       204,466
  Property and equipment, net                          17,289        17,473
  Goodwill                                            116,175       116,175
  Intangible assets, net                               34,460        43,740
  Other assets                                          1,503         1,745
                                                 ------------  ------------
    Total assets                                 $    362,917  $    383,599
                                                 ============  ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                               $     12,850  $     23,163
  Accrued liabilities                                  34,689        32,075
  Deferred revenue                                     26,346        34,862
                                                 ------------  ------------
    Total current liabilities                          73,885        90,100
  Long-term portion of deferred revenue                18,640        18,431
  Other long-term liabilities                             958         1,145
                                                 ------------  ------------
    Total liabilities                                  93,483       109,676
                                                 ------------  ------------
Stockholders' equity:
  Common stock                                          1,273         1,256
  Additional paid-in capital                          791,756       782,253
  Accumulated other comprehensive income                  159           190
  Accumulated deficit                                (523,754)     (509,776)
                                                 ------------  ------------
    Total stockholders' equity                        269,434       273,923
                                                 ------------  ------------
    Total liabilities and stockholders' equity   $    362,917  $    383,599
                                                 ============  ============



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

                                                       Six Months Ended
                                                   ------------------------
                                                     June 28,     June 29,
                                                       2014         2013
                                                   -----------  -----------
Operating activities:
Net loss                                           $   (13,978) $   (11,356)
Adjustments to reconcile net loss to net cash (used
 in) provided by operating activities:
  Depreciation and amortization                          4,522        5,363
  Loss on retirement of property and equipment              --          560
  Amortization of intangible assets                      9,280        9,280
  Amortization of premiums related to available-
   for-sale securities                                     108           --
  Stock-based compensation                               8,306        9,994
Changes in operating assets and liabilities:
  Accounts receivable, net                              (3,809)      (3,207)
  Inventory                                              5,183        5,880
  Deferred cost of revenue                               5,119       (7,991)
  Prepaid expenses and other assets                        960       (2,009)
  Accounts payable                                     (10,313)         (90)
  Accrued liabilities                                    2,601          464
  Deferred revenue                                      (8,307)      16,001
  Other long-term liabilities                             (188)         311
                                                   -----------  -----------
    Net cash (used in) provided by operating
     activities                                           (516)      23,200
                                                   -----------  -----------
Investing activities:
  Purchase of marketable securities                    (46,572)          --
  Purchase of property and equipment                    (4,328)      (3,265)
                                                   -----------  -----------
    Net cash used in investing activities              (50,900)      (3,265)
                                                   -----------  -----------
Financing activities:
  Proceeds from exercise of stock options                  139          288
  Proceeds from employee stock purchase plan             2,453        2,464
  Taxes paid for awards vested under equity
   incentive plans                                      (1,377)        (312)
                                                   -----------  -----------
    Net cash provided by financing activities            1,215        2,440
                                                   -----------  -----------
Effect of exchange rate changes on cash and cash
 equivalents                                                (3)           9
                                                   -----------  -----------
Net (decrease) increase in cash and cash
 equivalents                                           (50,204)      22,384
Cash and cash equivalents at beginning of period        82,747       46,995
                                                   -----------  -----------
Cash and cash equivalents at end of period         $    32,543  $    69,379
                                                   ===========  ===========

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
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products an...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...