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 | ||||||||||||||||
| Non-GAAP | Stock-Based Compensation | Amortization of Intangible 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 | ||||||||