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
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that Ocean9will exhibit at 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
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...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Conference Guru has been named “Media 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. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...