Calix Inc.
02/05/2013 | Press release | Archived content
Earnings Release FY 2012
Calix Reports Fourth Quarter and 2012 Fiscal Year Results
February 05, 2013 4:02pm EST
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PETALUMA, CA -- (Marketwire) -- 02/05/13 -- Calix, Inc. (NYSE: CALX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2012. Revenue for the fourth quarter of 2012 was $91.4 million, an increase of 12.5% compared to $81.3 million for the third quarter of 2012, and flat compared to $91.6 million for the fourth quarter of 2011.
"Strong fourth quarter results ended 2012 on a positive note," said Carl Russo, Calix president and CEO. "We are carrying this momentum into 2013, with a strengthened organization, an expanded Unified Access portfolio of software, systems and services, and our preferred global reseller agreement with Ericsson providing a solid foundation for growth."
Non-GAAP net income for the fourth quarter of 2012 was $2.9 million, or $0.06 per fully diluted share, an increase of 61.3% compared to non-GAAP net income of $1.8 million, or $0.04 per fully diluted share for the third quarter of 2012, and a decrease of 22.2% compared to non-GAAP net income of $3.7 million, or $0.08 per fully diluted share, in the fourth quarter of 2011.
GAAP net loss for the fourth quarter of 2012 was $6.6 million, or $(0.14) per basic and diluted share, compared to a GAAP net loss of $7.1 million, or $(0.15) per basic and diluted share for the third quarter of 2012, and compared to a GAAP net loss of $5.2 million, or $(0.11) per basic and diluted share reported for the fourth quarter of 2011. A reconciliation of our fourth quarter 2012 operating results from non-GAAP to GAAP is provided below (in thousands, except per share data):
Three Months Ended December 31, 2012
-------------------------------------------------------------
Stock- Amortization
Acquisition Gain on Based of
Related Bargain Compensa- Intangible
Non-GAAP Expenses Purchase tion Assets GAAP
--------- --------- --------- --------- ---------- -------
Revenue $ 91,424 $ - $ - $ - $ - $91,424
Cost of
revenue 51,962 - - 344 2,088 54,394
--------- --------- --------- --------- ---------- -------
Gross profit 39,462 - - (344) (2,088) 37,030
Gross margin 43.2% - - -0.4% -2.3% 40.5%
Operating
expenses 36,693 1,401 - 4,132 2,552 44,778
--------- --------- --------- --------- ---------- -------
Operating
income
(loss) 2,769 (1,401) - (4,476) (4,640) (7,748)
Interest and
other income
(expense),
net 23 - 1,029 - - 1,052
--------- --------- --------- --------- ---------- -------
Income (loss)
before taxes 2,792 (1,401) 1,029 (4,476) (4,640) (6,696)
Benefit from
income taxes (122) - - - - (122)
--------- --------- --------- --------- ---------- -------
Net income
(loss) $ 2,914 $ (1,401) $ 1,029 $ (4,476) $ (4,640) $(6,574)
========= ========= ========= ========= ========== =======
Weighted
average
basic and
diluted
shares used
to compute
GAAP net
loss per
common share 48,538
=======
Weighted
average
diluted
shares used
to compute
non-GAAP net
income per
common share 48,836 48,836 48,836 48,836 48,836
========= ========= ========= ========= ==========
GAAP net loss
per common
share $ (0.14)
=======
Non-GAAP net
income
(loss) per
share $ 0.06 $ (0.03) $ 0.02 $ (0.09) $ (0.10)
--------- --------- --------- --------- ----------
Conference Call
Calix will host a conference call to discuss its fourth quarter and fiscal year 2012 results at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today. Interested parties can listen to a live webcast of the conference call by visiting the Calix Investor Relations website at http://investor-relations.calix.com/ or dialing 877-407-4019 within the U.S. or 201-689-8337 outside the U.S. A replay of the conference call will also be available at http://investor-relations.calix.com/ approximately one hour following the completion of the call. 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.
All statements other than statements of historical facts contained in this press release, including statements regarding our future operations and growth opportunities, are forward-looking statements and are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release, and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release, except as required by law. Actual results and the timing of events could differ materially from current expectations based on risks and uncertainties affecting the Company's business. The reader is cautioned not to unduly rely on the forward-looking statements contained in this press release. Additional information on potential factors that could affect Calix's results and other risks and uncertainties are detailed in its reports filed with the SEC, including the Company's 2011 Annual Report on Form 10-K and its report on Form 10-Q for the fiscal quarter ended September 29, 2012, available at http://www.sec.gov.
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 and non-GAAP basic and diluted income 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, amortization of acquisition-related intangible assets, gain from bargain purchase of Ericsson's fiber access assets, and non-recurring acquisition-related expenses, which the Company believes are not indicative of its core operating results. Acquisition-related expenses largely include legal and professional expenses, severance and integration-related expenses associated with our merger with Occam in 2011 and our acquisition of Ericsson's fiber access assets in 2012. In addition, acquisition-related expenses for 2011 include the charge resulting from the required revaluation of Occam inventory to its estimated fair value and inventory-related charges upon the completion of the 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.
Calix, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
------------ ------------ ------------ ------------
Revenue $ 91,424 $ 91,585 $ 330,218 $ 344,669
Cost of revenue:
Products and
services(1) 52,306 52,489 185,103 195,698
Acquisition-
related expenses - - - 19,966
Amortization of
intangible assets 2,088 2,042 7,539 9,552
------------ ------------ ------------ ------------
Total cost of
revenue 54,394 54,531 192,642 225,216
------------ ------------ ------------ ------------
Gross profit 37,030 37,054 137,576 119,453
Operating expenses:
Research and
development(1) 17,144 17,385 66,748 67,725
Sales and
marketing(1) 17,249 16,720 62,129 55,551
General and
administrative(1) 6,432 5,552 26,114 27,002
Acquisition-
related
expenses(1) 1,401 - 1,401 12,927
Amortization of
intangible assets 2,552 2,553 10,208 8,569
------------ ------------ ------------ ------------
Total operating
expenses 44,778 42,210 166,600 171,774
------------ ------------ ------------ ------------
Loss from operations (7,748) (5,156) (29,024) (52,321)
Interest and other
income (expense),
net:
Interest income 1 7 15 87
Interest expense (45) (45) (185) (184)
Gain on bargain
purchase 1,029 - 1,029 -
Other income
(expense), net 67 28 (3) 92
------------ ------------ ------------ ------------
Loss before
provision for
(benefit from)
income taxes (6,696) (5,166) (28,168) (52,326)
Provision for
(benefit from)
income taxes (122) 48 158 224
------------ ------------ ------------ ------------
Net loss $ (6,574) $ (5,214) $ (28,326) $ (52,550)
============ ============ ============ ============
Net loss per common
share:
Basic and diluted $ (0.14) $ (0.11) $ (0.59) $ (1.15)
============ ============ ============ ============
Weighted average
number of shares
used to compute net
loss per common
share:
Basic and diluted 48,538 47,398 48,180 45,546
============ ============ ============ ============
(1) Includes stock-
based compensation
as follows:
Cost of revenue $ 344 $ 362 $ 1,433 $ 1,503
Research and
development 1,098 1,067 4,227 4,828
Sales and
marketing 1,320 1,244 5,160 4,500
General and
administrative 1,714 1,693 6,617 9,538
Acquisition-
related expenses - - - 1,234
------------ ------------ ------------ ------------
$ 4,476 $ 4,366 $ 17,437 $ 21,603
------------ ------------ ------------ ------------
Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands except per share data)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2012 2011 2012 2011
------------ ------------ ------------ ------------
GAAP net loss $ (6,574) $ (5,214) $ (28,326) $ (52,550)
Adjustments to
reconcile GAAP net
loss to non-GAAP
net income:
Stock-based
compensation 4,476 4,366 17,437 21,603
Amortization of
intangible assets 4,640 4,595 17,747 18,121
Acquisition-related
expenses 1,401 - 1,401 31,659
Gain on bargain
purchase (1,029) - (1,029) -
------------ ------------ ------------ ------------
Non-GAAP net income $ 2,914 $ 3,747 $ 7,230 $ 18,833
============ ============ ============ ============
Non-GAAP net income
per common share
Basic $ 0.06 $ 0.08 $ 0.15 $ 0.41
============ ============ ============ ============
Diluted $ 0.06 $ 0.08 $ 0.15 $ 0.40
============ ============ ============ ============
Weighted average
shares used to
compute non-GAAP
net income per
common share -
Basic 48,538 47,398 48,180 45,546
============ ============ ============ ============
Weighted average
shares used to
compute non-GAAP
net income per
common share -
Diluted (1) 48,836 47,570 48,367 46,947
============ ============ ============ ============
(1) Includes the dilutive effect of outstanding
stock options and restricted stock units.
Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
December 31, December 31,
2012 2011
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 46,995 $ 38,938
Restricted cash - 754
Accounts receivable, net 59,519 46,508
Inventory 43,282 45,229
Deferred cost of revenue 21,077 7,698
Prepaid and other current assets 5,677 4,429
------------ ------------
Total current assets 176,550 143,556
Property and equipment, net 21,083 16,130
Goodwill 116,175 116,175
Intangible assets, net 62,301 80,048
Other assets 1,788 2,194
------------ ------------
Total assets $ 377,897 $ 358,103
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,804 $ 14,250
Accrued liabilities 36,176 36,214
Deferred revenue 39,315 15,347
------------ ------------
Total current liabilities 92,295 65,811
Long-term portion of deferred revenue 15,782 13,347
Other long term liabilities 745 1,528
------------ ------------
Total liabilities 108,822 80,686
------------ ------------
Stockholders' equity:
Common stock 1,222 1,195
Additional paid-in capital 760,232 740,309
Accumulated other comprehensive income 132 98
Accumulated deficit (492,511) (464,185)
------------ ------------
Total stockholders' equity 269,075 277,417
------------ ------------
Total liabilities and stockholders' equity $ 377,897 $ 358,103
------------ ------------
Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Twelve Months Ended
--------------------------
December 31, December 31,
2012 2011
------------ ------------
Operating activities:
Net loss $ (28,326) $ (52,550)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Amortization of premiums relating to
available-for-sale securities - 244
Depreciation and amortization 8,562 7,954
Loss on retirement of property and equipment 262 2,449
Amortization of intangible assets 17,747 18,121
Stock-based compensation 17,437 21,603
Gain on bargain purchase (1,029) -
Changes in operating assets and liabilities:
Restricted cash 754 300
Accounts receivable, net (13,011) 13,722
Inventory 11,308 8,557
Deferred cost of revenue (13,378) 73
Prepaids and other assets 47 (148)
Accounts payable 2,553 (7,818)
Accrued liabilities (870) (386)
Deferred revenue 26,404 2,781
Other long-term liabilities (782) (313)
------------ ------------
Net cash provided by operating
activities 27,678 14,589
------------ ------------
Investing activities:
Purchase of property and equipment (10,179) (7,355)
Maturities of marketable securities - 31,755
Acquisition of Businesses, net of cash
acquired (12,000) (60,809)
------------ ------------
Net cash used in investing activities (22,179) (36,409)
------------ ------------
Financing activities:
Proceeds from exercise of stock options and
other 194 804
Proceeds from employee stock purchase plan 4,063 3,938
Taxes withheld upon vesting of restricted
stock units and restricted stock awards (1,744) (10,376)
------------ ------------
Net cash provided by (used in) financing
activities 2,513 (5,634)
------------ ------------
Effect of exchange rate changes on cash and cash
equivalents 45 88
Net increase (decrease) in cash and cash
equivalents 8,057 (27,366)
Cash and cash equivalents at beginning of period 38,938 66,304
------------ ------------
Cash and cash equivalents at end of period $ 46,995 $ 38,938
============ ============
Investor Inquiries: David H. Allen 408-474-0080 [email protected]
Source: Calix, Inc.
Released February 5, 2013
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