SAN JOSE, Calif.--(BUSINESS WIRE)--Calix, Inc. (NYSE: CALX) today announced that Calix management will participate in the upcoming investor events: Event: Morgan Stanley Technology, Media & Telecom Conference Date: March 5, 2024 Presentation time: 9:30 a.m. Pacific Time / 12:30 p.m. Eastern Time Location: Palace Hotel – San Francisco Participants: Chairman, Carl Russo; CFO, Cory Sindelar     Event: 36th Annual ROTH Conference Date: ...

While quarterly earnings beats are usually happy events, they don't always result in immediate share price gains. That was the situation with specialty tech stock Calix (CALX -25.70%) on Tuesday; despite an earnings report that was impressive at first glance, investors were troubled by what the future might bring. As a result, they traded out of the company's shares to the point where the stock lost nearly 26% of its value.Top and bottom-line beats for the fourth quarterAfter market hours Monday, Calix unve ...

Calix’s (CALX) fourth-quarter 2023 adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate by 16.22%. The figure increased 26.5% year over year.Net sales increased 8.3% year over year to $264.7 million but missed the consensus mark by 0.02%.Calix’s fourth-quarter results benefited from a strong portfolio of cloud and managed services.The top line benefited from growth in the cloud and managed services for Broadband Service Providers (BSPs). Calix added 17 new BSPs in the quarter, bringing ...

Financial Data and Key Metrics Changes - The company reported record revenue of $264.7 million for Q4 2023, marking a strong execution and completion of four years of deliberate revenue growth [9][22] - Non-GAAP gross margin reached a record 54.1%, while GAAP gross margin was reported at 42.8% due to charges related to excess legacy inventory [9][21] - The company experienced a GAAP net loss of $4.1 million in Q4 2023 [21] Business Line Data and Key Metrics Changes - The platform, cloud, and managed services segments continued to show robust growth, contributing significantly to the overall revenue despite a slowdown in appliance shipments [15][25] - The company expects first-quarter revenue for 2024 to be between $225 million and $231 million, indicating a low point for the year before sequential growth [40][23] Market Data and Key Metrics Changes - The company noted a significant increase in customer interest in BEAD funds, with nearly all customers either assembling a strategy or actively pursuing funds [8] - The company anticipates that customers will make decisions regarding government stimulus funding throughout 2024, impacting their network builds and purchases [23][25] Company Strategy and Development Direction - The company aims to leverage its unique platform and services to help broadband service providers (BSPs) simplify operations and innovate, thereby gaining market share from legacy operators [15][27] - The strategy includes maintaining flat operating expense investments in 2024 while preparing for significant government stimulus funding expected in 2025 [24][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of platform, cloud, and managed services, despite anticipated delays in appliance shipments due to customer decisions on BEAD funding [25][41] - The leadership views 2024 as a unique opportunity to expand the company's footprint ahead of the expected influx of BEAD funds in 2025 [48][85] Other Important Information - The company has authorized an additional $100 million for its common stock repurchase program, reflecting confidence in its financial position [22] - The supply chain has stabilized, with improvements in component lead times and a reduction in purchase commitments back to pre-pandemic levels [10][17] Q&A Session Summary Question: Why is there a delay in BEAD funding despite other stimulus dollars flowing? - Management clarified that while other funding is available, the scale of BEAD funding necessitates a strategic approach from customers, leading to a wait-and-see effect [32][33] Question: What is the impact of the slowdown in appliance shipments on cloud and managed services growth? - Management indicated that while appliance revenue may slow, the growth in cloud and managed services remains steady, potentially leading to a higher percentage of software revenue in the mix [61][82] Question: How does the company plan to address cost reductions in hardware? - The company plans to focus on new design wins and product releases to drive down costs over time, as past price increases from suppliers are difficult to reverse [80][59] Question: What is the outlook for revenue growth in 2025? - Management expects to return to a growth rate of 10% to 15% in 2025, driven by continued strength in platform, cloud, and managed services [100][114]

Calix (CALX) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.22%. A quarter ago, it was expected that this cloud, software platforms, systems and services provider for communications service providers would post earnings of $0.36 per share when it actually produced earnings of $0.4 ...

SAN JOSE, Calif.--(BUSINESS WIRE)--Calix, Inc. (NYSE: CALX) today announced that DirectLink, a member-based cooperative in northwestern Oregon, expects to double Calix SmartBiz™ business subscribers in the first quarter of 2024. As a managed service fully integrated into the Calix broadband platform, SmartBiz was simple for DirectLink to adopt and launch. Knowing their small business owners needed a network management solution that was purpose-built, easy to use, and flexible to serve any need, DirectLin ...

SAN JOSE, Calif.--(BUSINESS WIRE)--Calix, Inc. (NYSE: CALX) today announced that telecommunications service provider CL Tel leveraged the Calix broadband platform to deploy Bark and support the fight against cyberbullying and other online dangers in their Iowa communities. CL Tel has delivered critical technology innovation to their northern Iowa communities for 125 years. Today, that commitment extends to providing safe and secure internet experiences, especially for local youth. Bark is a managed servi ...

Calix (CALX) is making significant strides in the broadband industry, driven by a growing clientele and an expanding global footprint.In the third quarter of 2023, Calix reported a record revenue of $263.8 million, marking its 10th consecutive quarter of sequential growth.The continuous growth underscores Calix’s ability to capture market share and adapt to the evolving needs of broadband service providers (BSPs).Calix's broadband platform is a key catalyst in enhancing its partner ecosystem, fostering succ ...

Calix, Inc. (NYSE:CALX) Q3 2023 Earnings Conference Call October 24, 2023 8:30 AM ET Company Participants Jim Fanucchi - VR, IR Michael Weening - President and CEO Cory Sindelar - CFO Conference Call Participants George Notter - Jefferies Ryan Koontz - Needham & Company Joseph Cardoso - JPMorgan Michael Genovese - Rosenblatt Securities Timothy Savageaux - Northland Capital Markets Greg Mesniaeff - WestPark Capital Scott Searle - ROTH MKM Operator Greetings everyone, and welcome to the Calix Third Quarter 20 ...

Revenue Growth - Revenue increased by $27.5 million (12%) for the three months and $151.5 million (24%) for the nine months ended September 30, 2023, compared to the same periods in 2022, driven by growth in small and medium BSP customers[98] - The increase in revenue was attributed to BSPs adopting the company's platform and managed services to enhance subscriber experiences[98] - U.S. revenue accounted for 89% ($235.1 million) and 90% ($695.5 million) of total revenue for the three and nine months ended September 30, 2023, respectively, while international revenue was 11% ($28.7 million) and 10% ($79.4 million)[102] - No single customer accounted for more than 10% of total revenue for the periods ended September 30, 2023, and October 1, 2022, indicating a diversified customer base[102] - The company anticipates continued growth driven by the adoption of its platform and managed services among various service providers globally[93] Profitability and Expenses - Gross profit rose to $140.5 million (19% increase) and $405.1 million (30% increase) for the three and nine months ended September 30, 2023, respectively, with gross margin improving to 53.3% and 52.3%[103][106] - Sales and marketing expenses increased by $6.2 million (13%) for the three months and $35.5 million (29%) for the nine months ended September 30, 2023, primarily due to higher personnel and stock-based compensation expenses[107] - Research and development expenses increased by $13.8 million (41%) for the three months and $42.0 million (45%) for the nine months ended September 30, 2023, reflecting higher personnel costs and investments in prototypes[109] - General and administrative expenses for the nine months ended September 30, 2023 increased by $18.9 million compared to the same period in 2022, mainly due to personnel expenses of $9.0 million and stock-based compensation of $8.2 million[113] - General and administrative expenses as a percentage of revenue were 9% for the nine months ended September 30, 2023, compared to 9% for the same period in 2022[113] Research and Development - The company expects investments in research and development to increase in absolute dollars while remaining consistent as a percentage of gross profit[111] - Research and development expenses for the nine months ended September 30, 2023 increased by $42.0 million compared to the same period in 2022, primarily due to personnel expenses rising by $27.9 million[110] Financial Position - As of September 30, 2023, the company reported cash, cash equivalents, and marketable securities totaling $250.1 million, primarily held in cash and highly liquid securities[9] - Interest and other expense, net increased by $5.7 million for the nine months ended September 30, 2023, primarily due to a higher interest rate on cash and investments[115] - The effective tax rate for the nine months ended September 30, 2023 was 17.9%, lower than the statutory rate of 21% due to various tax credits and deductions[116] - The company recognized a tax benefit of $3.6 million related to the finalization of its 2022 tax returns[116] Risks and Challenges - The company faces risks associated with international operations, including compliance with varying laws and potential political instabilities[121] - The company relies on channel partners for sales, and any loss of key partners could negatively impact customer satisfaction and business performance[121] - The company faces risks from supply chain disruptions, particularly due to reliance on sole-source suppliers for key components, which could adversely affect operations[13] - Global macroeconomic conditions and supply chain constraints have negatively impacted business operations and may continue to do so, affecting demand for broadband products[122] - The company is exposed to customer credit risks that could adversely affect operating results and financial condition[124] Currency and Inventory Management - Operating expenses for the nine months ended September 30, 2023, were primarily denominated in USD (91%), with RMB at 5%, INR at 2%, and GBP at 2%[125] - A 10% fluctuation in USD relative to RMB, INR, and GBP would have resulted in an approximate $3.4 million change in operating expenses, representing about 1%[127] - The company recognized a net translation loss of $71,000 due to foreign exchange rate fluctuations for the nine months ended September 30, 2023[127] - During the same period, the net loss related to foreign currency denominated assets and liabilities was approximately $0.2 million[128] - The company has provided inventory deposits totaling $65.9 million as of September 30, 2023, indicating challenges in managing inventory and demand forecasting[13] - The company does not enter into derivatives for speculative purposes, using foreign currency forward contracts to hedge against fluctuations in foreign exchange rates[128]