Calix(US:CALX)2025-04-21 20:18Revenue Performance - In Q1 2025, revenue was $220.2 million, a sequential increase of 6.9% but a decrease of 2.7% year-over-year[12]. - U.S. revenue accounted for 96% of total revenue in Q1 2025, up from 90% in the previous quarter[22]. - Revenue for Q1 2025 was $220,242 thousand, down from $226,310 thousand in Q1 2024, representing a decrease of approximately 4.7%[58]. Profitability Metrics - Gross margin reached a record 55.7%, up 70 basis points sequentially and 150 basis points year-over-year[24]. - Non-GAAP net income for Q1 2025 was $13.1 million, an increase of $7.9 million from the prior quarter[28]. - GAAP gross margin for the three months ended March 29, 2025, was 55.7%, an increase from 55.0% in the previous quarter[64]. - Non-GAAP gross margin for the same period was 56.2%, up from 55.5% in the prior quarter[64]. - GAAP net loss for the three months ended March 29, 2025, was $4.787 million, compared to a loss of $17.924 million in the previous quarter[68]. - Non-GAAP net income for the same period was $13.131 million, significantly higher than $5.230 million in the prior quarter[68]. Cash Flow and Investments - Free cash flow was positive for the 19th consecutive quarter, with cash and investments totaling $282 million at the end of Q1 2025[4]. - Cash and cash equivalents at the end of Q1 2025 were $42,300 thousand, down from $88,418 thousand at the end of Q1 2024[62]. - Non-GAAP free cash flow for the three months ended March 29, 2025, was $12.902 million, compared to $10.214 million in the previous quarter[68]. Shareholder Actions - The company repurchased 1.2 million shares in Q1 2025, with an additional $100 million authorized for share repurchase[33][34]. Guidance and Projections - Guidance for Q2 2025 revenue is projected between $221 million and $227 million, reflecting a 2% increase at the midpoint from the prior quarter[37]. - Non-GAAP operating expense guidance for Q2 2025 is $110 million, indicating a flat quarter sequentially[40]. - The company expects GAAP gross margin for the next quarter to be between 54.35% and 56.35%[70]. - Projected non-GAAP net income per diluted common share for the next quarter is expected to be between $0.18 and $0.24[70]. Operating Expenses - Operating expenses for Q1 2025 were $128.8 million, representing 58% of revenue, with a decrease in sales and marketing expenses compared to the previous quarter[26]. - Total operating expenses for Q1 2025 were $128,789 thousand, compared to $124,609 thousand in Q1 2024, an increase of about 3.5%[58]. - Total GAAP operating expenses for the three months ended March 29, 2025, were $128.789 million, slightly down from $132.117 million in the previous quarter[66]. - Stock-based compensation for the three months ended March 29, 2025, was $19.745 million, compared to $22.075 million in the previous quarter[68]. Market Position and Strategy - The company continues to focus on expanding its BXP customer base and enhancing its platform, cloud, and managed services[43]. - The company is in the early stages of a significant disruption in the broadband industry, with expectations for further footprint gains[42]. - The company emphasizes the importance of its non-GAAP financial measures to provide a clearer view of its operating performance[55]. Remaining Performance Obligations - Remaining performance obligations (RPOs) rose 39% year-over-year and 4% quarter-over-quarter to $340 million[3].