SYS-CON MEDIA Authors: Jason Bloomberg, Eric Brown, Bob Gourley, Sandi Mappic, RealWire News Distribution

News Feed Item

Calix Reports First Quarter 2014 Financial Results

PETALUMA, CA -- (Marketwired) -- 04/29/14 -- Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the first quarter ended March 29, 2014. Revenue for the first quarter of 2014 was $85.8 million, a decrease of 5.2% compared to $90.5 million for the first quarter of 2013.

"While the first quarter started off slowly as expected, we saw increasing demand as the quarter progressed," said Carl Russo, president and CEO of Calix. "Growing demand for gigabit services and the recently completed integration of E-Series solutions with the BLM 1500 platform and the EntriView management system allowed us to make solid progress in expanding our customer footprint both domestically and internationally during the first quarter."

Non-GAAP net loss for the first quarter of 2014 was $1.5 million, or $(0.03) per fully diluted share. Non-GAAP net income was $3.2 million, or $0.06 per fully diluted share, for the first quarter of 2013. A reconciliation of GAAP and non-GAAP results is included as part of this release.

GAAP net loss for the first quarter of 2014 was $10.0 million, or $(0.20) per basic and diluted share, compared to a GAAP net loss of $6.2 million, or $(0.13) per basic and diluted share for the first quarter of 2013. A reconciliation of our first quarter 2014 operating results from non-GAAP to GAAP is provided below:


                                Calix, Inc.
              (Unaudited, in thousands, except per share data)
                     Three Months Ended March 29, 2014

                                                     Amortization
                                                          of
                                        Stock-Based   Intangible
                             Non-GAAP  Compensation     Assets       GAAP
                             --------  ------------  ------------  --------
Revenue                      $ 85,820  $          -  $          -  $ 85,820
Cost of revenue                46,452           354         2,088    48,894
                             --------  ------------  ------------  --------
Gross profit                   39,368          (354)       (2,088)   36,926
Gross margin                     45.9%         -0.4%         -2.4%     43.0%
Operating expenses             40,723         3,548         2,552    46,823
                             --------  ------------  ------------  --------
Operating loss                 (1,355)       (3,902)       (4,640)   (9,897)
Interest and other income
 (expense), net                   (20)            -             -       (20)
                             --------  ------------  ------------  --------
Loss before taxes              (1,375)       (3,902)       (4,640)   (9,917)
Provision for income taxes        110             -             -       110
                             --------  ------------  ------------  --------
Net loss                     $ (1,485) $     (3,902) $     (4,640) $(10,027)
                             ========  ============  ============  ========
Weighted average shares used
 to compute net loss per
 common share:
  Basic                        50,271        50,271        50,271    50,271
                             ========  ============  ============  ========
  Diluted                      50,271        50,271        50,271    50,271
                             ========  ============  ============  ========
Net loss per common share:
  Basic                      $  (0.03) $      (0.08) $      (0.09) $  (0.20)
                             ========  ============  ============  ========
  Diluted                    $  (0.03) $      (0.08) $      (0.09) $  (0.20)
                             ========  ============  ============  ========

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 first 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
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
Revenue                                                $  85,820  $  90,548
Cost of revenue:
    Products and services (1)                             46,806     47,345
    Amortization of intangible assets                      2,088      2,088
                                                       ---------  ---------
      Total cost of revenue                               48,894     49,433
                                                       ---------  ---------
Gross profit                                              36,926     41,115
Operating expenses:
    Research and development (1)                          19,630     20,171
    Sales and marketing (1)                               17,390     15,801
    General and administrative (1)                         7,251      8,131
    Amortization of intangible assets                      2,552      2,552
                                                       ---------  ---------
      Total operating expenses                            46,823     46,655
                                                       ---------  ---------
Loss from operations                                      (9,897)    (5,540)
Interest and other income (expense), net:
    Interest income                                            4          1
    Interest expense                                         (57)       (28)
    Other income (expense), net                               33       (279)
                                                       ---------  ---------
Loss before provision for income taxes                    (9,917)    (5,846)
                                                       ---------  ---------
Provision for income taxes                                   110        357
                                                       ---------  ---------
Net loss                                               $ (10,027) $  (6,203)
                                                       =========  =========
Net loss per common share:
      Basic and diluted                                $   (0.20) $   (0.13)
                                                       =========  =========
Weighted average number of shares used to compute net
 loss per common share:
      Basic and diluted                                   50,271     48,911
                                                       =========  =========

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

(1) Includes stock-based compensation as follows:
    Cost of revenue                                    $     354  $     351
    Research and development                               1,180      1,186
    Sales and marketing                                    1,368      1,279
    General and administrative                             1,000      1,903
                                                       ---------  ---------
                                                       $   3,902  $   4,719
                                                       =========  =========


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

                                                        Three Months Ended
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
GAAP net loss                                          $ (10,027) $  (6,203)
Adjustments to reconcile GAAP net loss to non-GAAP net
 income (loss):
Stock-based compensation                                   3,902      4,719
Amortization of intangible assets                          4,640      4,640
                                                       ---------  ---------
Non-GAAP net income (loss)                             $  (1,485) $   3,156
                                                       =========  =========
Non-GAAP net income (loss) per common share:
  Basic                                                $   (0.03) $    0.06
                                                       =========  =========
  Diluted                                              $   (0.03) $    0.06
                                                       =========  =========
Weighted average shares used to compute non-GAAP net
 income (loss) per common share - Basic                   50,271     48,911
                                                       =========  =========
Weighted average shares used to compute non-GAAP net
 income per common share - Diluted (1)                    50,271     49,422
                                                       =========  =========

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


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

                                                 March 29,     December 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $      75,169  $      82,747
  Restricted cash                                        295            295
  Accounts receivable, net                            44,134         43,520
  Inventory                                           45,060         51,071
  Deferred cost of revenue                            17,843         21,076
  Prepaid expenses and other current assets            4,869          5,757
                                               -------------  -------------
    Total current assets                             187,370        204,466
  Property and equipment, net                         17,122         17,473
  Goodwill                                           116,175        116,175
  Intangible assets, net                              39,100         43,740
  Other assets                                         1,618          1,745
                                               -------------  -------------
    Total assets                               $     361,385  $     383,599
                                               =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $      10,887  $      23,163
  Accrued liabilities                                 34,570         32,075
  Deferred revenue                                    29,013         34,862
                                               -------------  -------------
    Total current liabilities                         74,470         90,100
  Long-term portion of deferred revenue               18,469         18,431
  Other long-term liabilities                          1,090          1,145
                                               -------------  -------------
    Total liabilities                                 94,029        109,676
                                               -------------  -------------
Stockholders' equity:
  Common stock                                         1,258          1,256
  Additional paid-in capital                         785,700        782,253
  Accumulated other comprehensive income                 201            190
  Accumulated deficit                               (519,803)      (509,776)
                                               -------------  -------------
    Total stockholders' equity                       267,356        273,923
                                               -------------  -------------
    Total liabilities and stockholders' equity $     361,385  $     383,599
                                               =============  =============


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

                                                        Three Months Ended
                                                       --------------------
                                                       March 29,  March 30,
                                                          2014       2013
                                                       ---------  ---------
Operating activities:
Net loss                                               $ (10,027) $  (6,203)
Adjustments to reconcile net loss to net cash (used
 in) provided by operating activities:
  Depreciation and amortization                            2,271      2,854
  Loss on retirement of property and equipment                 -        542
  Amortization of intangible assets                        4,640      4,640
  Stock-based compensation                                 3,902      4,719
Changes in operating assets and liabilities:
  Accounts receivable, net                                  (614)   (11,198)
  Inventory                                                6,011      4,050
  Deferred cost of revenue                                 3,233     (5,340)
  Prepaid expenses and other assets                        1,016         74
  Accounts payable                                       (12,276)    (3,131)
  Accrued liabilities                                      2,485        482
  Deferred revenue                                        (5,811)    10,449
  Other long-term liabilities                                (56)       442
                                                       ---------  ---------
    Net cash (used in) provided by operating
     activities                                           (5,226)     2,380
                                                       ---------  ---------
Investing activities:
  Purchase of property and equipment                      (1,908)    (1,326)
                                                       ---------  ---------
    Net cash used in investing activities                 (1,908)    (1,326)
                                                       ---------  ---------
Financing activities:
  Proceeds from exercise of stock options                     21         42
  Taxes withheld upon vesting of performance
   restricted stock units                                   (473)         -
                                                       ---------  ---------
    Net cash (used in) provided by financing
     activities                                             (452)        42
                                                       ---------  ---------
Effect of exchange rate changes on cash and cash
 equivalents                                                   8        (32)
Net (decrease) increase in cash and cash equivalents      (7,578)     1,064
Cash and cash equivalents at beginning of period          82,747     46,995
                                                       ---------  ---------
Cash and cash equivalents at end of period             $  75,169  $  48,059
                                                       =========  =========

Add to Digg Bookmark with del.icio.us Add to Newsvine

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.