Company Overview - Calix, Inc. (CALX) is currently ranked 3 (Buy) in the Internet - Software industry, which is in the top 11% of the Zacks Industry Rank [3] - Over the last 60 days, one analyst has increased earnings estimates for the current quarter, while three have decreased their estimates, resulting in a consensus estimate drop from 9 cents to 8 cents per share [3] Options Market Activity - Recent activity in the options market indicates that investors are anticipating significant movement in Calix shares, particularly with the January 17, 2025 $25.00 Call option showing some of the highest implied volatility among equity options [4] - High implied volatility often suggests that traders expect a major price movement, which could be due to an upcoming event that may lead to a rally or sell-off [1][4] Analyst Sentiment - The current sentiment among analysts regarding Calix suggests that the high implied volatility could indicate a developing trading opportunity, as seasoned traders often seek options with high implied volatility to sell premium [5]

Core Insights - GOCare has partnered with 360 Broadband to enhance customer experience management through its digital experience platform [1][2] - The integration of GOCare's solution with Sonar Software and Calix Cloud aims to optimize digital customer engagement and operational efficiency for 360 Broadband [2][3] Company Overview - GOCare specializes in providing software solutions for the broadband and utility industries, offering a comprehensive digital experience platform and various functionalities [4] - 360 Broadband focuses on delivering reliable broadband services to rural communities in southeast Oklahoma and northeast Texas, with a commitment to expanding its coverage area [5] - Calix, Inc. offers a broadband platform and managed services to help service providers streamline operations and enhance subscriber engagement [6][7] - Sonar Software provides cloud-based BSS & OSS solutions for ISPs, enabling improved data visibility and operational efficiency [9] Technology Integration - The GOCare Digital Experience Platform (DXP) includes modules such as GOCare Messenger, Connect, Outage Management, and Pulse, which will be integrated into 360 Broadband's existing systems [2] - This integration allows for automated notifications, self-help solutions, and real-time analytics, enhancing customer engagement and operational scalability [2][3] Industry Trends - The broadband industry is increasingly recognizing the importance of digital communication channels to meet consumer demand and improve operational efficiencies [3] - Customer experience is identified as a key differentiator in the broadband sector, with companies like GOCare supporting service providers in delivering exceptional service [3]

Core Points - Calix, Inc. held its Q3 2024 earnings conference call on October 29, 2024, featuring key executives including President and CEO Michael Weening and CFO Cory Sindelar [1][3]. - The company issued a news release and stockholder letter prior to the call, which were made available on the Investor Relations section of their website [4]. - The call included forward-looking statements regarding financial performance, growth strategy, and market outlook, with a caution that actual results may differ materially [5][6]. Company Overview - Calix, Inc. is publicly traded on the NYSE under the ticker symbol CALX [1]. - The conference call was structured to include a brief prepared remarks segment followed by a question-and-answer session [1]. Financial Performance - Specific financial metrics and performance details were not disclosed in the provided text, but the context suggests that these would be discussed during the call [5].

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $201 million, representing a 1.4% sequential growth and within the guidance range provided in July [11] - Non-GAAP gross margin reached a record of 55.4% in Q3 2024 [11] - Remaining performance obligations (RPOs) grew to $296 million, an increase of $29 million or 11% sequentially and $76 million or 35% year-over-year [12] - Cash and investments were a record $288 million at the end of Q3, up $26 million sequentially [15] Business Line Data and Key Metrics Changes - The company added 13 new customers in Q3, all existing service providers, indicating new footprint expansion [13] - Five customers initiated their first cloud deployment, and 23 customers launched managed services for the first time [13] - Non-GAAP operating expenses were $105 million, up $1 million from the prior quarter, primarily due to marketing expenses [14] Market Data and Key Metrics Changes - The company expects RPOs to continue growing as customers add subscribers and expand the use of Calix's platform, cloud, and managed services [12] - The BEAD program is anticipated to be a multi-year growth lever, with initial bookings expected in Q1 2025 [17][18] Company Strategy and Development Direction - The company aims to help broadband providers transition from speed-based network operators to experience providers, leveraging its platform for differentiation [9][10] - The management emphasizes the importance of transforming business models to avoid commoditization in the broadband market [36][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that Q2 2024 was the trough and indicated a positive outlook for sequential growth moving forward [22] - The ongoing uncertainty in the market is seen as a catalyst for customers to consider transformation and adopt the Calix platform [27][28] - Management believes that the delays in BEAD funding could ultimately benefit the company as customers seek to adapt to changing market conditions [59] Other Important Information - The company highlighted the importance of customer success initiatives, including helping customers with sales strategies and marketing [92][96] - The management noted that the lead times for appliances have stabilized at a new normal, slightly higher than pre-pandemic levels [62] Q&A Session Summary Question: What is the outlook for sequential growth after the trough? - Management confirmed that Q2 was declared the trough and expressed confidence in sequential growth moving forward [22] Question: Can you clarify the timing and expectations for BEAD? - Management expects initial orders in Q1 2025, with shipments ramping up throughout the year [28] Question: How do you view the contribution of new contracts versus expansions? - The strongest growth drivers are new subscribers and applications from existing customers, with new contracts contributing gradually [87] Question: Are there any political risks associated with BEAD? - Management is not concerned about political risks, citing bipartisan support for broadband initiatives [53] Question: What is the strategy for customer success? - The company is focused on helping customers transform their sales and marketing strategies to improve their market position [92][96]

Calix (CALX) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 30%. A quarter ago, it was expected that this cloud, software platforms, systems and services provider for communications service providers would post earnings of $0.07 per share when it actually produced earnings of $0.09, ...

Revenue Performance - Revenue for Q3 2024 was $200.9 million, reflecting a 1.4% increase from the prior quarter but a 24% decrease year-over-year[11] - In Q3 2024, revenue was reported at $200.9 million, a decrease from $263.8 million in Q3 2023[41] - Revenue from small customers represented 83% of total revenue in Q3 2024, up from 82% in the prior quarter[20] - Revenue guidance for Q4 2024 is projected between $201 million and $207 million, indicating a sequential increase of 1.5% from the previous quarter[29] Profitability Metrics - Gross margin for Q3 2024 was a record 54.8%, up 50 basis points sequentially and 150 basis points year-over-year; non-GAAP gross margin was 55.4%[22] - GAAP gross margin improved to 54.8% for the three months ended September 28, 2024, up from 53.3% in the same period last year[46] - Non-GAAP net income for Q3 2024 was $8.9 million, an increase of $2.8 million from the prior quarter but a decrease of $22.1 million year-over-year[24] - Non-GAAP net income for the three months ended September 28, 2024, was $8,907 thousand, compared to $30,996 thousand for the same period in 2023[48] - Net loss for Q3 2024 was $(3.97) million, contrasting with a net income of $16.95 million in Q3 2023[41] Operating Expenses - Operating expenses for Q3 2024 were $120.9 million, representing 60.2% of revenue, with a sequential increase of $2.0 million[22] - Non-GAAP operating expenses for Q4 2024 are expected to be around $110 million, an increase of $4.7 million primarily due to the annual ConneXions conference[30] - Operating loss for Q3 2024 was $(10.9) million, compared to an operating income of $15.9 million in Q3 2023[41] - Operating expenses for the same period are estimated to be between $124,000 and $126,000 on a GAAP basis, while non-GAAP operating expenses are projected to be between $109,000 and $111,000[52] Customer Acquisition - The company added 13 new customers in Q3 2024, all of whom were existing service providers not previously engaged with the company[4] - The company is focused on expanding its BEP customer base and enhancing its platform, cloud, and managed services offerings[33] - The ongoing transformation in the broadband industry is expected to drive further growth and customer acquisition for the company[31] Cash and Investments - Cash and investments at the end of Q3 2024 totaled $287.6 million, a sequential increase of $26.4 million[27] - Cash and cash equivalents at the end of the period were $62,361 thousand, down from $135,675 thousand at the end of the previous year[44] - The company reported net cash provided by operating activities of $53,037 thousand for the nine months ended September 28, 2024, an increase from $41,327 thousand in the prior year[44] Future Outlook - The company expects to begin receiving orders from the Broadband Equity Access and Deployment (BEAD) program in Q1 2025, with shipments starting later in 2025[5] - Non-GAAP gross margin guidance for Q4 2024 is set at 55.5%, reflecting a 10-basis point improvement compared to the prior quarter[30] - The company anticipates a non-GAAP effective tax rate between 21% and 23% for Q4 2024[31] - For the three months ending December 31, 2024, GAAP gross margin is projected to be between 54.2% and 56.2%, with non-GAAP gross margin expected between 54.5% and 56.5%[52] - The net income (loss) per diluted common share for the upcoming quarter is expected to range from $(0.14) to $(0.08) on a GAAP basis, and from $0.04 to $0.10 on a non-GAAP basis[52] Balance Sheet Highlights - As of September 28, 2024, Calix, Inc. reported total current assets of $585,018 thousand, a decrease of 2.3% from $597,956 thousand on December 31, 2023[43] - Total liabilities decreased to $158,837 thousand as of September 28, 2024, down from $222,883 thousand on December 31, 2023, reflecting a significant reduction of 28.8%[43] - The company’s total stockholders' equity increased to $778,688 thousand as of September 28, 2024, compared to $718,982 thousand on December 31, 2023, marking an 8.3% increase[43] Shareholder Information - GAAP net loss per diluted common share for the three months ended September 28, 2024, was $(0.06) while non-GAAP net income per diluted common share was $0.13[50] - The weighted-average diluted common shares outstanding for the three months ended September 28, 2024, were 68.8 million[50] - The weighted-average diluted common shares outstanding for the three months ending December 31, 2024, are expected to be 69.2 million[52]

Well, actually George, you summarized them very clearly. If you want us to stack rank them I would say that it depends on the company and therefore inside each company, they're going to be different. So let's let's cover up what you so succinctly and accurately covered which is what we've been saying for multiple quarters since we started to see this in late 2023. So the one was that the decision-making on BEAD. And where as we've always stated that government funding is going to take much longer than antic ...

Exhibit 99.2 The second quarter of fiscal 2024 reflected the continued strength of our appliance-based platform, cloud and managed services model. We believe revenue of $198.1 million in the second quarter of 2024 represents the low point for revenue in 2024. We delivered record gross margin as our broadband service provider (BSP) customers continued to gain subscribers due to the outstanding services and value they are providing their subscribers. Our operational excellence remained evident in our strong b ...

Investment overview Business description CALX is a disruptor to a mature industry CALX CALX CALX Given that this is a disruptive model, the question is whether there is strong demand for it and if the products do work. The most solid evidence for strong demand can be seen from CALX Financials, where revenue from its small customer base saw exceptional growth post-launch of these next-gen products (revenue grew from $294 million in FY19 to $764 million in FY23). In terms of whether the product works, I belie ...

Tech stock investors have seen tremendous volatility over the past few years. While many stocks have soared, not al have. Thus, it is always a good idea to keep in mind which companies are worth adding to, and which are tech stocks to sell. If you look at broader indexes, that may not seem true. However, if you exclude the big cap names, it becomes very obvious that most companies in the tech sector are still finding it hard to appease Wall Street’s appetite for growth.The Russell 2000 Index, which tracks t ...