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 ...

ITEM 1. Legal Proceedings We have identified the following additional risks and uncertainties that may af ect our business, financial condition and/or results of operations. The risks described below include any material changes to and supersede the description of the risk factors disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 21, 2023. Investors should carefully consider the risks describe ...

Jim Fanucchi - VR, IR Conference Call Participants Samik Chatterjee - JPMorgan Scott Searle - Roth It is now my pleasure to introduce your host, Jim Fanucchi, Vice President of Investor Relations. Sir, please go ahead. Before I turn the call over to Michael for his opening remarks, I want to remind everyone on this call, we will refer to forward-looking statements, including all statements the company will make about its future financial and operating performance, growth strategy, and market outlook and act ...

The improving supply chain has also allowed us to reduce our lead times to customers and to work with them to shrink their inventories as well. The consequence of this work was a sequential reduction in our Revenue EDGE system shipments within our small customer segment. At the same time, our large and medium sized customer segments increased. Specifically, we saw strength from a large platform customer and continued shipments to a recently acquired medium customer, which contributed to the Intelligent Acce ...