Calix Inc.

07/29/2014 | Press release | Archived content

Earnings Release Q2 2014

Calix Reports Second Quarter 2014 Financial Results

July 29, 2014 4:05pm EDT

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
Non-GAAP Stock-Based Compensation Amortization of Intangible 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 https://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

Investor Inquiries:

David H. Allen
408-474-0080
[email protected]

Source: Calix, Inc.

Released July 29, 2014

Calix Inc. published this content on July 29, 2014, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on December 19, 2025 at 09:32 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]