Calix(US:CALX)2025-02-21 21:07Financial Performance - Revenue for 2024 was $831.5 million, a decrease of 20% from $1,039.6 million in 2023[219]. - Gross profit for 2024 was $453.6 million, down from $518.3 million in 2023, reflecting a gross margin of 54.5%[219]. - Net loss for 2024 was $29.7 million, compared to a net income of $29.3 million in 2023, resulting in a diluted loss per share of $0.45[219]. - The company reported a comprehensive loss of $29.7 million in 2024, compared to a comprehensive income of $31.1 million in 2023[219]. - Revenue from the United States was $764.6 million in 2024, a decline from $944.2 million in 2023, representing a decrease of approximately 19%[326]. - The company reported interest income of $11.4 million in 2024, an increase from $9.2 million in 2023[327]. - The adjusted cost of revenue for 2024 was $372.2 million, down from $515.6 million in 2023, reflecting improved cost management[327]. Cash and Liquidity - The company has $297.1 million in cash, cash equivalents, and marketable securities as of December 31, 2024, primarily held in cash and highly liquid securities[191]. - Cash and cash equivalents at the end of 2024 were $43.2 million, down from $63.4 million at the end of 2023[226]. - The total current assets decreased from $597.956 million in 2023 to $584.735 million in 2024, with cash and cash equivalents dropping from $63.409 million to $43.162 million[215]. - The company has approximately $9.1 million of cash held by foreign subsidiaries in India, China, and the United Kingdom, with minimal credit risk associated with these cash and cash equivalents[244]. Inventory and Assets - As of December 31, 2024, the company reported components and finished goods inventories with a carrying value of $102.7 million and excess and obsolete component liabilities of $27.5 million[209]. - Inventory decreased to $102.7 million in 2024 from $132.9 million in 2023, a decline of approximately 23%[277]. - The total fair value of marketable securities as of December 31, 2024, was $271.5 million, compared to $199.7 million in 2023, indicating an increase of approximately 36%[271]. Liabilities and Equity - Total liabilities decreased significantly from $222.9 million in 2023 to $158.3 million in 2024[215]. - Stockholders' equity increased from $719.0 million in 2023 to $780.9 million in 2024, reflecting a positive trend in the company's financial position[215]. - The allowance for doubtful accounts increased to $311,000 in 2024 from $304,000 in 2023, showing a slight increase of about 2%[276]. Operating Expenses - Operating expenses increased to $496.6 million in 2024, compared to $492.7 million in 2023, with R&D expenses at $179.9 million[219]. - Stock-based compensation expense rose to $70.8 million in 2024, compared to $62.8 million in 2023[226]. - Depreciation and amortization expenses increased to $19.6 million in 2024 from $16.6 million in 2023, a rise of approximately 18%[277]. Risks and Challenges - The company has a history of fluctuations in gross margin and operating results, making future performance predictions difficult[68]. - Customer credit risks could adversely affect operating results and financial condition, particularly if accounts receivable are not collected as anticipated[69]. - The company faces risks related to product defects, which could harm reputation and adversely affect business and financial condition[73]. - Intense competition in the broadband access equipment market could lead to pricing pressures and reduced profit margins, impacting overall financial results[86]. - A concentrated customer base poses risks, as the loss or reduced spending from key customers could significantly affect revenue[88]. - The company faces challenges in developing new products due to rapid technological advancements and potential delays in meeting development targets[90]. Compliance and Regulatory Issues - Compliance with evolving data privacy laws, such as the CCPA and GDPR, may result in increased costs and operational changes[95]. - Regulatory scrutiny regarding data transfers and privacy practices could lead to additional costs and operational adjustments[98]. - The company may incur substantial costs to implement new security measures to comply with regulations, impacting financial condition[100]. - Violations of privacy and security laws could result in regulatory investigations and fines, adversely affecting the company's reputation and financial results[101]. Future Outlook - Significant expenses and cash outlays are expected as the company seeks to expand its business and target new customer opportunities[68]. - The company may need additional capital in the future if current plans change, which could lead to dilution for existing stockholders[112]. - The company expects to recognize stock-based compensation expense of $49.0 million in 2025, $21.4 million in 2026, $6.6 million in 2027, and $0.9 million in 2028[306].