Calix Reports Historical Quarterly Financial Information

PETALUMA, Calif.--(BUSINESS WIRE)-- Calix, Inc. (NYSE:CALX) today publicly released historical quarterly financial information for the quarters ended March 31, 2008 through June 26, 2010.

About Calix

Calix, Inc. (NYSE:CALX) is a leading provider in North America of broadband communications access systems and software for copper- and fiber- based network architectures that enable communications service providers to connect to their residential and business subscribers. Calix enables communications service providers to provide a wide range of revenue-generating services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. The Calix Unified Access Portfolio helps these companies to transform their legacy and mixed protocol access networks to fiber and Ethernet. Calix has shipped over six million ports of its Unified Access Infrastructure portfolio to more than 500 North American and international customers, whose networks serve over 40 million subscriber lines in total. 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 the attachments to this press release to supplement its consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP measures are provided to enhance the reader's understanding of the Company's operating performance as they exclude certain non-cash charges which the Company believes are not indicative of its core operating results. Management believes that the non-GAAP measures used in the attachments to 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 these results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in the attachments to 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.

The Company makes adjustments for the following items in analyzing its operating results as it does not consider these items as part of the Company's ongoing operating activities or meaningful in evaluating the Company's financial performance:

Stock-based compensation

A non-cash expense incurred in accordance with SFAS 123R using the modified prospective transition method.

Amortization of acquisition related intangible assets

A non-cash expense resulting from intangible assets acquired in the acquisition of Optical Solutions, Inc. (OSI) in February 2006. The Company is required to amortize these assets over their expected useful lives.

Change in fair value of preferred stock warrants

A non-cash expense or benefit resulting from the revaluation of the Company's preferred stock warrant liability. Upon completion of the Company's initial public offering, the preferred warrant liability was reclassified as a component of stockholders' equity, and the Company is no longer required to revalue the warrants.

Preferred stock dividends

Preferred stock dividends represent Series I preferred stock dividends paid to the Company's Series I stockholders prior to the conversion of preferred stock into common stock in connection with the Company's initial public offering.



Calix, Inc.

Historical Financials

Non-GAAP Income Statements 2010

($ in
thousands)

                GAAP           Non-GAAP       GAAP           Non-GAAP       GAAP           Non-GAAP

                Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Ytd Ending     Ytd Ending

                  3/27/2010      3/27/2010      6/26/2010      6/26/2010      6/26/2010      6/26/2010

Revenue         $ 48,203       $ 48,203       $ 71,653       $ 71,653       $ 119,856      $ 119,856

Cost of
revenue:

 Products and     30,171         30,031         41,855         41,371         72,026         71,402
 services (1)

 Amortization
 of existing      1,360          -              1,360          -              2,720          -
 technologies
 (2)

Total cost of     31,531         30,031         43,215         41,371         74,746         71,402
revenue

Gross profit      16,672         18,172         28,438         30,282         45,110         48,454

Gross margin %    34.6      %    37.7      %    39.7      %    42.3      %    37.6      %    40.4      %

Research and
development       11,847         11,277         13,086         11,400         24,933         22,677
(3)

Sales and         8,422          7,988          10,184         8,937          18,606         16,925
marketing (4)

General and
Administrative    4,748          3,085          7,423          3,659          12,171         6,744
(5)

Amortization
of intangible     185            -              185            -              370            -
assets (6)

 Total
 operating        25,202         22,350         30,878         23,996         56,080         46,346
 expenses

Net operating     (8,530    )    (4,178    )    (2,440    )    6,286          (10,970   )    2,108
income (loss)

Interest          74             74             103            103            177            177
income

Interest          (473      )    (473      )    (620      )    (620      )    (1,093    )    (1,093    )
expense

Change in fair
value of
preferred         (173      )    -              -              -              (173      )    -
stock warrants
(7)

Other income /    11             11             (2        )    (2        )    9              9
(expense)

 Total other
 income /         (561      )    (388      )    (519      )    (519      )    (1,080    )    (907      )
 (expense)

Provision for     171            171            243            243            414            414
income taxes

Net income /      (9,262    )    (4,737    )    (3,202    )    5,524          (12,464   )    787
(loss)

Preferred
stock             (900      )    -              -              -              (900      )    -
dividends (8)

Net income /
(loss)
attributable    $ (10,162   )  $ (4,737    )  $ (3,202    )  $ 5,524        $ (13,364   )  $ 787
to common
stockholders

Non-GAAP
bridge to GAAP

(1) Cost of
Sales                            140                           484                           624
(stock-based
compensation)

(2) Cost of
Sales
(amortization                    1,360                         1,360                         2,720
of existing
technology)

(3) Research
and
development                      570                           1,686                         2,256
(stock-based
compensation)

(4) Sales and
marketing                        434                           1,247                         1,681
(stock-based
compensation)

(5) General
and
administration                   1,663                         3,764                         5,427
(stock-based
compensation)

(6) Operating
expense
(amortization                    185                           185                           370
of intangible
assets)

(7) Change in
fair value of                    173                           -                             173
preferred
stock warrants

(8) Preferred
stock                            900                           -                             900
dividends

Total Non-Cash                   5,425                         8,726                         14,151
Expenses

GAAP net
income /
(loss)                         $ (10,162   )                 $ (3,202    )                 $ (13,364   )
attributable
to common
stockholders

Calix's non-GAAP measures are not in accordance with, or an alternative for, generally accepted
accounting principles and may be different from non-GAAP measures used by other companies.

In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive
set of accounting rules or principles.




Calix, Inc.

Historical Financials

Condensed Balance Sheets 2010

($ in thousands)

                                                      3/27/2010      6/26/2010

Assets

Current assets:

Cash and cash equivalents                           $ 80,963       $ 24,721

Marketable securities                                 36,840         77,166

Restricted cash                                       -              -

Accounts receivable, net                              25,178         35,540

Inventory                                             26,267         24,943

Deferred cost of goods sold                           13,846         15,846

Prepaids and other current assets                     3,560          3,584

Total current assets                                  186,654        181,800

Property and equipment, net                           11,591         11,818

Goodwill                                              65,576         65,576

Intangible assets, net                                5,150          3,605

Other assets                                          863            2,416

Total assets                                        $ 269,834      $ 265,215

Liabilities, convertible preferred stock and
stockholder's deficit

Current liabilities:

Accounts payable                                    $ 7,486        $ 4,309

Accrued liabilities                                   28,808         26,510

Preferred stock warrant liabilities                   -              -

Loans payable                                         5,000          -

Current portion of deferred revenue                   25,030         29,263

Total current liabilities                             66,324         60,082

Loan payable                                          15,000         -

Long-term portion of deferred revenue                 6,928          8,572

Other long-term liabilities                           1,089          1,040

Convertible preferred stock                           -              -

                                                                     -

Stockholders' deficit:                                             -

Common stock                                          909            933

Additional paid-in capital                            581,926        600,157

Other comprehensive income                            2              (23       )

Accumulated deficit                                   (402,344  )    (405,546  )

Total stockholders' deficit                           180,493        195,521

Total liabilities, convertible preferred stock and  $ 269,834      $ 265,215
Stockholders' deficit




Calix, Inc.

Historical Financials

Condensed Statements of Cash Flows 2010

($ in thousands)

                                     Qtr Ending     Qtr Ending     Ytd Ending

                                       3/27/2010      6/26/2010      6/26/2010

Operating activities

Net cash used in operating           $ 5,058        $ (5,258    )  $ (200      )
activities

Investing activities

Acquisition of property and            (1,481    )    (1,425    )    (2,906    )
equipment

Purchase of marketable securities      (7,434    )    (49,133   )    (56,567   )

Sale of marketable securities          6,708          8,500          15,208

Net cash provided by (used in)         (2,207    )    (42,058   )    (44,265   )
investing activities

Financing activities

Proceeds from bank borrowings          -              -              -

Principal payments on bank             -              (20,000   )    (20,000   )
borrowings

Proceeds from exercise of stock        62             10             72
options and warrants

Repurchase of common and preferred     -              -              -
stock

Proceeds from initial public           46,229         11,064         57,293
offering of common stock

Net cash provided by (used in)         46,291         (8,926    )    37,365
financing activities

Net increase (decrease) in cash and    49,142         (56,242   )    (7,100    )
cash equivalents

Cash and cash equivalents at           31,821         80,963         31,821
beginning of period

Cash and cash equivalents at end of  $ 80,963       $ 24,721       $ 24,721
period





Calix, Inc.

Historical Financials

Non-GAAP Income Statements 2009

($ in
thousands)

                GAAP           Non-GAAP       GAAP           Non-GAAP       GAAP           Non-GAAP       GAAP            Non-GAAP        GAAP            Non-GAAP

                Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending      Qtr Ending      Ytd Ending      Ytd Ending

                  3/28/2009      3/28/2009      6/27/2009      6/27/2009      9/26/2009      9/26/2009      12/31/2009      12/31/2009      12/31/2009      12/31/2009

Revenue         $ 37,146       $ 37,146       $ 47,842       $ 47,842       $ 59,600       $ 59,600       $ 88,359        $ 88,359        $ 232,947       $ 232,947

Cost of
revenue:

 Products and     25,391         25,212         31,076         30,908         37,117         36,948         57,279          57,113          150,863         150,181
 services (1)

 Amortization
 of existing      1,360          -              1,360          -              1,360          -              1,360           -               5,440           -
 technologies
 (2)

Total cost of     26,751         25,212         32,436         30,908         38,477         36,948         58,639          57,113          156,303         150,181
revenue

Gross profit      10,395         11,934         15,406         16,934         21,123         22,652         29,720          31,246          76,644          82,766

Gross margin %    28.0      %    32.1      %    32.2      %    35.4      %    35.4      %    38.0      %    33.6       %    35.4       %    32.9       %    35.5       %

Research and
development       10,468         9,739          10,742         10,123         11,977         11,356         12,945          12,257          46,132          43,475
(3)

Sales and         7,209          6,754          7,988          7,566          8,494          8,084          9,795           9,343           33,486          31,747
marketing (4)

General and
Administrative    3,663          2,753          4,238          3,270          3,728          2,688          3,984           2,784           15,613          11,495
(5)

Amortization
of intangible     185            -              185            -              185            -              185             -               740             -
assets (6)

 Total
 operating        21,525         19,246         23,153         20,959         24,384         22,128         26,909          24,384          95,971          86,717
 expenses

Net operating     (11,130   )    (7,312    )    (7,747    )    (4,025    )    (3,261    )    524            2,811           6,862           (19,327    )    (3,951     )
income (loss)

Interest          79             79             27             27             38             38             101             101             245             245
income

Interest          (943      )    (943      )    (1,079    )    (1,079    )    (1,404    )    (1,404    )    (441       )    (441       )    (3,867     )    (3,867     )
expense

Change in fair
value of
preferred         -              -              95             -              (23       )    -              (35        )    -               37              -
stock warrants
(7)

Other income /    64             64             40             40             9              9              6               6               119             119
(expense)

 Total other
 income /         (800      )    (800      )    (917      )    (1,012    )    (1,380    )    (1,357    )    (369       )    (334       )    (3,466     )    (3,503     )
 (expense)

Provision for     130            130            138            138            (217      )    (217      )    (403       )    (403       )    (352       )    (352       )
income taxes

Net income /      (12,060   )    (8,242    )    (8,802    )    (5,175    )    (4,424    )    (616      )    2,845           6,931           (22,441    )    (7,102     )
(loss)

Preferred
stock             (652      )    -              -              -              (2,389    )    -              (706       )    -               (3,747     )    -
dividends (8)

Net income /
(loss)
attributable    $ (12,712   )  $ (8,242    )  $ (8,802    )  $ (5,175    )  $ (6,813    )  $ (616      )  $ 2,139         $ 6,931         $ (26,188    )  $ (7,102     )
to common
stockholders

Non-GAAP
bridge to GAAP

(1) Cost of
Sales                            179                           168                           169                            166                             682
(stock-based
compensation)

(2) Cost of
Sales
(amortization                    1,360                         1,360                         1,360                          1,360                           5,440
of existing
technology)

(3) Research
and
development                      729                           619                           621                            688                             2,657
(stock-based
compensation)

(4) Sales and
marketing                        455                           422                           410                            452                             1,739
(stock-based
compensation)

(5) General
and
administration                   910                           968                           1,040                          1,200                           4,118
(stock-based
compensation)

(6) Operating
expense
(amortization                    185                           185                           185                            185                             740
of intangible
assets)

(7) Change in
fair value of                    -                             (95       )                   23                             35                              (37        )
preferred
stock warrants

(8) Preferred
stock                            652                           -                             2,389                          706                             3,747
dividends

Total Non-Cash                   4,470                         3,627                         6,197                          4,792                           19,086
Expenses

GAAP net
income /
(loss)                         $ (12,712   )                 $ (8,802    )                 $ (6,813    )                  $ 2,139                         $ (26,188    )
attributable
to common
stockholders

Calix's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used
by other companies.

In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.




Calix, Inc.

Historical Financials

Condensed Balance Sheets 2009

($ in thousands)

                       3/28/2009      6/27/2009      9/26/2009      12/31/2009

Assets

Current assets:

Cash and cash        $ 18,980       $ 47,884       $ 55,622       $ 31,821
equivalents

Marketable             -              -              6,272          36,228
securities

Restricted cash        2,815          628            628            629

Accounts               24,665         34,830         42,515         46,992
receivable, net

Inventory              19,744         17,508         13,917         18,556

Deferred cost of       14,510         18,073         19,370         16,468
goods sold

Prepaids and other     2,022          1,616          1,712          4,018
current assets

Total current          82,736         120,539        140,036        154,712
assets

Property and           9,383          8,890          10,900         11,293
equipment, net

Goodwill               65,576         65,576         65,576         65,576

Intangible assets,     11,330         9,785          8,240          6,695
net

Other assets           360            309            681            2,840

Total assets         $ 169,385      $ 205,099      $ 225,433      $ 241,116

Liabilities,
convertible
preferred stock and
stockholder's
deficit

Current
liabilities:

Accounts payable     $ 6,187        $ 8,266        $ 10,669       $ 14,635

Accrued liabilities    15,896         14,640         19,221         28,629

Preferred stock        232            137            160            195
warrant liabilities

Loans payable          -              -              1,111          3,333

Current portion of     26,144         33,044         34,242         29,921
deferred revenue

Total current          48,459         56,087         65,403         76,713
liabilities

Loan payable           21,000         21,000         18,889         16,667

Long-term portion      4,758          4,738          5,260          6,556
of deferred revenue

Other long-term        963            1,424          959            910
liabilities

Convertible            427,055        461,313        478,981        479,628
preferred stock

                                      -

Stockholders'                         -              -
deficit:

Common stock           100            100            100            102

Additional paid-in     45,758         47,945         50,185         52,739
capital

Other comprehensive    -              -              (23       )    (17        )
income

Accumulated deficit    (378,708  )    (387,508  )    (394,321  )    (392,182   )

Total stockholders'    (332,850  )    (339,463  )    (344,059  )    (339,358   )
deficit

Total liabilities,
convertible
preferred stock and  $ 169,385      $ 205,099      $ 225,433      $ 241,116
Stockholders'
deficit





Calix, Inc.

Historical Financials

Condensed Statements of Cash Flows 2009

($ in
thousands)

             Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending      Ytd Ending

               3/28/2009      6/27/2009      9/26/2009      12/31/2009      12/31/2009

Operating
activities

Net cash
used in      $ (3,432    )  $ (4,595    )  $ 1,681        $ 7,736         $ 1,390
operating
activities

Investing
activities

Acquisition
of property    (790      )    (769      )    (1,927    )    (1,578     )    (5,064     )
and
equipment

Purchase of
marketable     -              -              (6,295    )    (29,950    )    (36,245    )
securities

Sale of
marketable     -              -              -              -               -
securities

Net cash
provided by
(used in)      (790      )    (769      )    (8,222    )    (31,528    )    (41,309    )
investing
activities

Financing
activities

Proceeds
from bank      -              -              20,000         -               20,000
borrowings

Principal
payments on    -              -              (21,000   )    -               (21,000    )
bank
borrowings

Proceeds
from Series
J
investors,     -              34,258         15,279         (59        )    49,478
net of
issuance
costs

Proceeds
from
exercise of    -              10             -              50              60
stock
options and
warrants

Repurchase
of common
and            (12       )    -              -              -               (12        )
preferred
stock

Proceeds
from
initial
public         -              -              -              -               -
offering of
common
stock

Net cash
provided by
(used in)      (12       )    34,268         14,279         (9         )    48,526
financing
activities

Net
increase
(decrease)     (4,234    )    28,904         7,738          (23,801    )    8,607
in cash and
cash
equivalents

Cash and
cash
equivalents    23,214         18,980         47,884         55,622          23,214
at
beginning
of period

Cash and
cash
equivalents  $ 18,980       $ 47,884       $ 55,622       $ 31,821        $ 31,821
at end of
period





Calix, Inc.

Historical Financials

Non-GAAP Income Statements 2008

($ in
thousands)

                GAAP           Non-GAAP       GAAP           Non-GAAP       GAAP           Non-GAAP       GAAP            Non-GAAP        GAAP            Non-GAAP

                Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending      Qtr Ending      Ytd Ending      Ytd Ending

                  3/31/2008      3/31/2008      6/30/2008      6/30/2008      9/29/2008      9/29/2008      12/31/2008      12/31/2008      12/31/2008      12/31/2008

Revenue         $ 59,661       $ 59,661       $ 60,820       $ 60,820       $ 59,317       $ 59,317       $ 70,665        $ 70,665        $ 250,463       $ 250,463

Cost of
revenue:

 Products and     41,358         41,227         39,331         39,121         39,158         38,967         46,078          45,881          165,925         165,196
 services (1)

 Amortization
 of existing      1,360          -              1,360          -              1,360          -              1,360           -               5,440           -
 technologies
 (2)

Total cost of     42,718         41,227         40,691         39,121         40,518         38,967         47,438          45,881          171,365         165,196
revenue

Gross profit      16,943         18,434         20,129         21,699         18,799         20,350         23,227          24,784          79,098          85,267

Gross margin %    28.4      %    30.9      %    33.1      %    35.7      %    31.7      %    34.3      %    32.9       %    35.1       %    31.6       %    34.0       %

Research and
development       10,850         10,291         11,900         10,810         11,055         10,288         10,543          9,770           44,348          41,159
(3)

Sales and         7,303          6,956          8,396          7,811          7,814          7,354          8,114           7,618           31,627          29,739
marketing (4)

General and
Administrative    3,392          2,525          4,066          2,741          3,948          3,040          3,847           2,813           15,253          11,119
(5)

Amortization
of intangible     185            -              185            -              185            -              185             -               740
assets (6)

 Total
 operating        21,730         19,772         24,547         21,362         23,002         20,682         22,689          20,201          91,968          82,017
 expenses

Net operating     (4,787    )    (1,338    )    (4,418    )    337            (4,203    )    (332      )    538             4,583           (12,870    )    3,250
income (loss)

Interest          221            221            101            101            153            153            144             144             620             620
income

Interest          (215      )    (215      )    (164      )    (164      )    (809      )    (809      )    (900       )    (900       )    (2,089     )    (2,089     )
expense

Change in fair
value of
preferred         546            -              -              -              557            -              226             -               1,329           -
stock warrants
(7)

Other income /    10             10             (23       )    (23       )    14             14             9               9               10              10
(expense)

 Total other
 income /         562            16             (86       )    (86       )    (85       )    (642      )    (521       )    (747       )    (130       )    (1,459     )
 (expense)

Provision for     45             45             101            101            73             73             (300       )    (300       )    (81        )    (81        )
income taxes

Net income /      (4,270    )    (1,367    )    (4,605    )    150            (4,361    )    (1,047    )    317             4,136           (12,919    )    1,872
(loss)

Preferred
stock             (479      )    -              (540      )    -              (2,441    )    -              (605       )    -               (4,065     )    -
dividends (8)

Net income /
(loss)
attributable    $ (4,749    )  $ (1,367    )  $ (5,145    )  $ 150          $ (6,802    )  $ (1,047    )  $ (288       )  $ 4,136         $ (16,984    )  $ 1,872
to common
stockholders

Non-GAAP
bridge to GAAP

(1) Cost of
Sales                            131                           210                           191                            197                             729
(stock-based
compensation)

(2) Cost of
Sales
(amortization                    1,360                         1,360                         1,360                          1,360                           5,440
of existing
technology)

(3) Research
and
development                      559                           1,090                         767                            773                             3,189
(stock-based
compensation)

(4) Sales and
marketing                        347                           585                           460                            496                             1,888
(stock-based
compensation)

(5) General
and
administration                   867                           1,325                         908                            1,034                           4,134
(stock-based
compensation)

(6) Operating
expense
(amortization                    185                           185                           185                            185                             740
of intangible
assets)

(7) Change in
fair value of                    (546      )                   -                             (557      )                    (226       )                    (1,329     )
preferred
stock warrants

(8) Preferred
stock                            479                           540                           2,441                          605                             4,065
dividends

Total Non-Cash                   3,382                         5,295                         5,755                          4,424                           18,856
Expenses

GAAP net
income /
(loss)                         $ (4,749    )                 $ (5,145    )                 $ (6,802    )                  $ (288       )                  $ (16,984    )
attributable
to common
stockholders

Calix's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used
by other companies.

In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.




Calix, Inc.

Historical Financials

Condensed Balance Sheets 2008

($ in thousands)

                       3/31/2008      6/30/2008      9/29/2008      12/31/2008

Assets

Current assets:

Cash and cash        $ 8,564        $ 22,354       $ 27,735       $ 23,214
equivalents

Marketable             5,029          3,011          -              -
securities

Restricted cash        4,625          -              4,840          4,856

Accounts               33,040         38,905         36,265         32,783
receivable, net

Inventory              14,323         13,798         17,392         23,397

Deferred cost of       17,922         18,596         20,719         14,208
goods sold

Prepaids and other     1,321          1,932          1,608          2,247
current assets

Total current          84,825         98,596         108,559        100,705
assets

Property and           9,613          9,403          9,495          9,940
equipment, net

Goodwill               65,576         65,576         65,576         65,576

Intangible assets,     17,510         15,965         14,420         12,875
net

Other assets           386            391            395            359

Total assets         $ 177,910      $ 189,931      $ 198,445      $ 189,455

Liabilities,
convertible
preferred stock and
stockholder's
deficit

Current
liabilities:

Accounts payable     $ 11,864       $ 24,188       $ 18,930       $ 18,490

Accrued liabilities    15,230         17,073         18,608         16,347

Preferred stock        1,015          1,015          457            232
warrant liabilities

Loans payable          11,000         9,750          -              -

Current portion of     30,434         30,875         34,095         24,233
deferred revenue

Total current          69,543         82,901         72,090         59,302
liabilities

Related party loan     -              -              21,000         21,000
payable

Long-term portion      3,833          3,874          4,200          4,580
of deferred revenue

Other long-term        -              -                             567
liabilities

Convertible            422,817        423,357        425,797        426,403
preferred stock

                                      -

Stockholders'                         -            -
deficit:

Common stock           100            100            100            100

Additional paid-in     35,337         38,590         40,964         43,497
capital

Other comprehensive    39             13             -              -
income

Accumulated deficit    (353,759  )    (358,904  )    (365,706  )    (365,994   )

Total stockholders'    (318,283  )    (320,201  )    (324,642  )    (322,397   )
deficit

Total liabilities,
convertible
preferred stock and  $ 177,910      $ 189,931      $ 198,445      $ 189,455
Stockholders'
deficit





Calix, Inc.

Historical Financials

Condensed Statements of Cash Flows 2008

($ in
thousands)

             Qtr Ending     Qtr Ending     Qtr Ending     Qtr Ending      Ytd Ending

               3/31/2008      6/30/2008      9/29/2008      12/31/2008      12/31/2008

Operating
activities

Net cash
used in      $ (9,534    )  $ 14,212       $ (7,478    )  $ (2,751     )  $ (5,551     )
operating
activities

Investing
activities

Acquisition
of property    (1,036    )    (1,151    )    (1,436    )    (1,804     )    (5,427     )
and
equipment

Purchase of
marketable     -              -              -              -               -
securities

Sale of
marketable     3,286          1,991          2,999          -               8,276
securities

Net cash
provided by
(used in)      2,251          840            1,563          (1,805     )    2,849
investing
activities

Financing
activities

Proceeds
from bank      -              -              21,000         -               21,000
borrowings

Principal
payments on    (5,512    )    (1,250    )    (9,750    )    -               (16,512    )
bank
borrowings

Proceeds
from Series
J
investors,     -              -              -              -               -
net of
issuance
costs

Proceeds
from
exercise of    17             7              46             35              105
stock
options and
warrants

Repurchase
of common
and            -              (19       )    -              -               (19        )
preferred
stock

Proceeds
from
initial
public         -              -              -              -               -
offering of
common
stock

Net cash
provided by
(used in)      (5,495    )    (1,262    )    11,296         35              4,574
financing
activities

Net
increase
(decrease)     (12,778   )    13,790         5,381          (4,521     )    1,872
in cash and
cash
equivalents

Cash and
cash
equivalents    21,342         8,564          22,354         27,735          21,342
at
beginning
of period

Cash and
cash
equivalents  $ 8,564        $ 22,354       $ 27,735       $ 23,214        $ 23,214
at end of
period




    Source: Calix, Inc.