Calix Reports First Quarter 2013 Financial Results
Strong Demand Bucks Seasonal Trend Resulting in Record First Quarter Revenue
PETALUMA, CA -- (Marketwired) -- 04/25/13 -- Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the first quarter ended March 30, 2013. Revenue for the first quarter of 2013 was $90.5 million, an increase of 15.3% compared to $78.6 million for the first quarter of 2012.
"Our strong year-over-year first quarter revenue growth resulted in record revenue for a first quarter and improved gross margin," said Carl Russo, president and CEO of Calix. "These results reflect our success in penetrating new customer accounts and expanding our addressable market."
Non-GAAP net income for the first quarter of 2013 was $3.2 million, or $0.06 per fully diluted share. Non-GAAP net income was $0.6 million, or $0.01 per fully diluted share, for the first quarter of 2012. A reconciliation of GAAP and non-GAAP results is included as part of this release.
GAAP net loss for the first quarter of 2013 was $6.2 million, or $(0.13) per basic and diluted share, compared to a GAAP net loss of $7.5 million, or $(0.16) per basic and diluted share for the first quarter of 2012. A reconciliation of our first quarter 2013 operating results from non-GAAP to GAAP is provided below:
Three Months Ended March 30, 2013
----------------------------------------------
Amortization
of
Stock-Based Intangible
Non-GAAP Compensation Assets GAAP
-------- ------------ ------------ --------
Revenue $ 90,548 $ - $ - $ 90,548
Cost of revenue 46,994 351 2,088 49,433
-------- ------------ ------------ --------
Gross profit 43,554 (351) (2,088) 41,115
Gross margin 48.1% -0.4% -2.3% 45.4%
Operating expenses 39,735 4,368 2,552 46,655
-------- ------------ ------------ --------
Operating income (loss) 3,819 (4,719) (4,640) (5,540)
Interest and other income
(expense), net (306) - - (306)
-------- ------------ ------------ --------
Income (loss) before taxes 3,513 (4,719) (4,640) (5,846)
Provision for income taxes 357 - - 357
-------- ------------ ------------ --------
Net income (loss) $ 3,156 $ (4,719) $ (4,640) $ (6,203)
======== ============ ============ ========
Weighted average basic and
diluted shares used to
compute GAAP net loss per
common share 48,911
========
Weighted average diluted
shares used to compute non-
GAAP net income per common
share 49,422 49,422 49,422
======== ============ ============
GAAP net loss per common
share $ (0.13)
========
Non-GAAP net income (loss)
per share $ 0.06 $ (0.10) $ (0.09)
======== ============ ============
Conference Call
In conjunction with this announcement, Calix will host a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today to discuss its first quarter 2013 financial results. A live audio webcast and replay of the call will be available in the Investor Relations section of the Calix web site at http://investor-relations.calix.com/.
Live call access information: Dial-in number: (877) 407-4019 (U.S.) or (201) 689-8337 (outside the U.S.)
The conference call and webcast will include forward-looking information.
About Calix
Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enables communications service providers worldwide to transform their copper- and fiber-based networks and become the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com.
Use of Non-GAAP Financial Information
The Company uses certain non-GAAP financial measures in this press release to supplement its consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP measures include non-GAAP net income and non-GAAP basic and diluted income per share. These non-GAAP measures are provided to enhance the reader's understanding of the Company's operating performance as they primarily exclude certain non-cash charges for stock-based compensation and amortization of acquisition-related intangible assets, and non-recurring acquisition-related and other expenses, which the Company believes are not indicative of its core operating results. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company's ongoing business performance and management uses these non-GAAP measures to evaluate financial results and to establish operational goals. The presentation of these non-GAAP measures is not meant to be a substitute for results presented in accordance with GAAP, but rather should be evaluated in conjunction with those GAAP results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in this press release. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Calix, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended
------------------------------
March 30, March 31,
2013 2012
-------------- --------------
Revenue $ 90,548 $ 78,565
Cost of revenue:
Products and services(1) 47,345 43,471
Amortization of intangible assets 2,088 1,275
-------------- --------------
Total cost of revenue 49,433 44,746
-------------- --------------
Gross profit 41,115 33,819
Operating expenses:
Research and development(1) 20,171 16,966
Sales and marketing(1) 15,801 14,890
General and administrative(1) 8,131 6,780
Amortization of intangible assets 2,552 2,552
-------------- --------------
Total operating expenses 46,655 41,188
-------------- --------------
Loss from operations (5,540) (7,369)
Interest and other income (expense), net:
Interest income 1 7
Interest expense (28) (42)
Other income (expense), net (279) (22)
-------------- --------------
Loss before provision for income taxes (5,846) (7,426)
Provision for income taxes 357 95
-------------- --------------
Net loss $ (6,203) $ (7,521)
============== ==============
Net loss per common share:
Basic and diluted $ (0.13) $ (0.16)
============== ==============
Weighted average number of shares used to
compute net loss per common share:
Basic and diluted 48,911 47,850
============== ==============
(1) Includes stock-based compensation as
follows:
Cost of revenue $ 351 $ 363
Research and development 1,186 1,021
Sales and marketing 1,279 1,239
General and administrative 1,903 1,692
-------------- --------------
$ 4,719 $ 4,315
============== ==============
Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands except per share data)
Three Months Ended
--------------------------
March 30, March 31,
2013 2012
------------ ------------
GAAP net loss $ (6,203) $ (7,521)
Adjustments to reconcile GAAP net loss to non-
GAAP net income:
Stock-based compensation 4,719 4,315
Amortization of intangible assets 4,640 3,827
------------ ------------
Non-GAAP net income $ 3,156 $ 621
============ ============
Non-GAAP net income per common share
Basic $ 0.06 $ 0.01
============ ============
Diluted $ 0.06 $ 0.01
============ ============
Weighted average shares used to compute non-GAAP
net income per common share - Basic 48,911 47,850
============ ============
Weighted average shares used to compute non-GAAP
net income per common share - Diluted (1) 49,422 48,039
============ ============
(1) Includes the dilutive effect of outstanding stock options, restricted
stock units, and ESPP.
Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
March 30, December 31,
2013 2012
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 48,059 $ 46,995
Accounts receivable, net 70,717 59,519
Inventory 39,232 43,282
Deferred cost of revenue 26,417 21,077
Prepaid expenses and other current assets 6,063 5,677
------------ ------------
Total current assets 190,488 176,550
Property and equipment, net 19,013 21,083
Goodwill 116,175 116,175
Intangible assets, net 57,661 62,301
Other assets 1,694 1,788
------------ ------------
Total assets $ 385,031 $ 377,897
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,673 $ 16,804
Accrued liabilities 36,673 36,176
Deferred revenue 48,629 39,315
------------ ------------
Total current liabilities 98,975 92,295
Long-term portion of deferred revenue 16,917 15,782
Other long-term liabilities 1,525 745
------------ ------------
Total liabilities 117,417 108,822
------------ ------------
Stockholders' equity:
Common stock 1,222 1,222
Additional paid-in capital 764,992 760,232
Accumulated other comprehensive income 114 132
Accumulated deficit (498,714) (492,511)
------------ ------------
Total stockholders' equity 267,614 269,075
------------ ------------
Total liabilities and stockholders' equity $ 385,031 $ 377,897
============ ============
Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Three Months Ended
--------------------------
March 30, March 31,
2013 2012
------------ ------------
Operating activities:
Net loss $ (6,203) $ (7,521)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 2,854 1,960
Loss on retirement of property and equipment 542 -
Amortization of intangible assets 4,640 3,827
Stock-based compensation 4,719 4,315
Changes in operating assets and liabilities:
Restricted cash - 754
Accounts receivable, net (11,198) (836)
Inventory 4,050 7,651
Deferred cost of revenue (5,340) (1,281)
Prepaid expenses and other assets 74 623
Accounts payable (3,131) (117)
Accrued liabilities 482 (293)
Deferred revenue 10,449 4,765
Other long-term liabilities 442 (330)
------------ ------------
Net cash provided by operating
activities 2,380 13,517
------------ ------------
Investing activities:
Purchase of property and equipment (1,326) (3,012)
------------ ------------
Net cash used in investing activities (1,326) (3,012)
------------ ------------
Financing activities:
Proceeds from exercise of stock options 42 72
------------ ------------
Net cash provided by financing
activities 42 72
------------ ------------
Effect of exchange rate changes on cash and cash
equivalents (32) 47
Net increase in cash and cash equivalents 1,064 10,624
Cash and cash equivalents at beginning of period 46,995 38,938
------------ ------------
Cash and cash equivalents at end of period $ 48,059 $ 49,562
============ ============
Investor Inquiries: David H. Allen 408-474-0080 David.Allen@Calix.com
Source: Calix, Inc.
Released April 25, 2013