Calix(US:CALX)2024-04-22 20:19Revenue Performance - Revenue for the first quarter of 2024 was $226.3 million, within the guidance range provided in January, and represented a 21% decrease from the prior quarter due to lower appliance shipments[36] - Revenue for Q1 2024 was $226.3 million, a decrease of 15% from the prior quarter and 9% year-over-year[42] - U.S. revenue was 93% of total revenue in Q1 2024, down from 94% in Q4 2023, with a 16% sequential decline and an 8% year-over-year decline[8] - Revenue from small customers accounted for 81% of total revenue in Q1 2024, up from 71% in the prior quarter, while revenue from medium-sized customers decreased to 12% from 18%[7] - Revenue from large customers constituted 7% of total revenue in Q1 2024, down from 11% in the prior quarter, reflecting a 46% decrease in absolute dollars from Q4 2023[44] - Revenue guidance for the next quarter is projected between $197.0 million and $203.0 million, with a gross margin expected between 54.25% and 56.25%[86] Operating Expenses - Non-GAAP operating expenses for Q1 2024 were $108.4 million, representing 47.9% of revenue, with a 5.5% increase compared to the same quarter last year[18] - Operating expenses increased to $124.61 million, compared to $118.12 million in the previous year, with significant increases in sales and marketing and general administrative expenses[96] - Operating expenses are anticipated to be between $106.0 million and $109.0 million, a decrease from the previous quarter's range of $122.0 million to $125.0 million[86] Profitability Metrics - GAAP gross margin reached a record 54.2%, up 1,140 basis points sequentially and 300 basis points year-over-year; non-GAAP gross margin was 54.9%, an increase of 80 basis points sequentially[46] - Non-GAAP net income for Q1 2024 was $14.4 million, a decrease of $15.0 million compared to the prior quarter and down approximately $7.1 million from the same quarter last year[63] - GAAP net income for Q1 2024 was $0.1 million, an improvement from a net loss of approximately $6.7 million sequentially and a decrease of about $9.5 million year-over-year[84] - Net income was $0.10 million, a significant drop from $9.60 million, leading to a net income per diluted share of $0.00 compared to $0.14 last year[96] Cash Flow and Investments - Non-GAAP free cash flow for Q1 2024 was $10.982 million, showing consistent cash generation despite market challenges[26] - Cash and investments at the end of Q1 2024 totaled $239.5 million, a sequential increase of $19.1 million[64] - Cash and cash equivalents at the end of the period were $88.4 million, down from $94.2 million at the end of the previous period[77] - Net cash provided by operating activities for the quarter was $14.7 million, an increase from $8.1 million in the same quarter last year[77] - The company reported a net increase in cash and cash equivalents of $25.0 million during the quarter[77] Customer and Market Development - The company added 10 new BSP customers in Q1 2024, indicating a shift towards existing service providers rather than startups[1] - The company added 16 new Calix Cloud deployments in Q1 2024, enhancing its platform offerings[9] - The company added 18 new Revenue EDGE and/or Intelligent Access EDGE customer deployments in Q1 2024, indicating growth in managed services[45] - The company is focusing on new product development and market expansion strategies to drive future growth[96] Future Outlook - The company expects Q2 2024 revenue to be between $197 million and $203 million, anticipating a year of decision-making for U.S. customers regarding government stimulus[21] - The company plans to maintain its current level of operating expense investments in 2024 to capitalize on growth opportunities ahead of anticipated government broadband investments[2] - The company anticipates long-term growth potential supported by a strong balance sheet and expansion of its platform, cloud, and managed services[51]