Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

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.

@ThingsExpo Stories
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.