Calix(CALX) - 2024 Q3 - Quarterly Results

Revenue Performance - Revenue for Q3 2024 was $200.9 million, reflecting a 1.4$200.9 million, a decrease from $263.8 million in Q3 2023[41] - Revenue from small customers represented 83$201 million and $207 million, indicating a sequential increase of 1.5$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$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$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]