Calix Reports Second Quarter 2013 Financial Results
PETALUMA, CA -- (Marketwired) -- 07/30/13 -- Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the second quarter ended June 29, 2013. Revenue for the second quarter of 2013 was $94.4 million, an increase of 20% compared to $78.9 million for the second quarter of 2012.
"Our year-over-year revenue growth in Q2 and better-than-anticipated bottom line results reflect our solid execution and progress in expanding our reach into both our domestic and international markets," said Carl Russo, president and CEO of Calix. "Our Unified Access portfolio continues to resonate with communication service providers as they map out their network strategies."
Non-GAAP net income for the second quarter of 2013 was $4.8 million, or $0.10 per fully diluted share. Non-GAAP net income was $1.9 million, or $0.04 per fully diluted share, for the second quarter of 2012. A reconciliation of GAAP and non-GAAP results is included as part of this release.
GAAP net loss for the second quarter of 2013 was $5.2 million, or $(0.10) per basic and diluted share, compared to a GAAP net loss of $7.1 million, or $(0.15) per basic and diluted share for the second quarter of 2012. A reconciliation of our second quarter 2013 operating results from non-GAAP to GAAP is provided below:
| Three Months Ended June 29, 2013 | ||||||||||||||||
| Non-GAAP | Stock-Based Compensation | Amortization of Intangible Assets | GAAP | |||||||||||||
| Revenue | $ | 94,439 | $ | - | $ | - | $ | 94,439 | ||||||||
| Cost of revenue | 49,469 | 377 | 2,088 | 51,934 | ||||||||||||
| Gross profit | 44,970 | (377) | (2,088) | 42,505 | ||||||||||||
| Gross margin | 47.6% | -0.4% | -2.2% | 45.0% | ||||||||||||
| Operating expenses | 39,900 | 4,898 | 2,552 | 47,350 | ||||||||||||
| Operating income (loss) | 5,070 | (5,275) | (4,640) | (4,845) | ||||||||||||
| Interest and other income (expense), net | (84) | - | - | (84) | ||||||||||||
| Income (loss) before provision for income taxes | 4,986 | (5,275) | (4,640) | (4,929) | ||||||||||||
| Provision for income taxes | 224 | - | - | 224 | ||||||||||||
| Net income (loss) | $ | 4,762 | $ | (5,275) | $ | (4,640) | $ | (5,153) | ||||||||
| Weighted average basic and diluted shares used to compute GAAP net loss per common share | 49,153 | |||||||||||||||
| Weighted average diluted shares used to compute non-GAAP net income (loss) per common share | 50,073 | 50,073 | 50,073 | |||||||||||||
| GAAP net loss per common share | $ | (0.10) | ||||||||||||||
| Non-GAAP net income (loss) per diluted share | $ | 0.10 | $ | (0.11) | $ | (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 second 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, 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 | Six Months Ended | |||||||||||||||||
| June 29, | June 30, | June 29, | June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenue | $ | 94,439 | $ | 78,928 | $ | 184,987 | $ | 157,493 | ||||||||||
| Cost of revenue: | ||||||||||||||||||
| Products and services(1) | 49,846 | 43,619 | 97,191 | 87,090 | ||||||||||||||
| Amortization of intangible assets | 2,088 | 2,088 | 4,176 | 3,363 | ||||||||||||||
| Total cost of revenue | 51,934 | 45,707 | 101,367 | 90,453 | ||||||||||||||
| Gross profit | 42,505 | 33,221 | 83,620 | 67,040 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development(1) | 20,035 | 16,473 | 40,206 | 33,439 | ||||||||||||||
| Sales and marketing(1) | 17,079 | 14,897 | 32,880 | 29,787 | ||||||||||||||
| General and administrative(1) | 7,684 | 6,129 | 15,815 | 12,909 | ||||||||||||||
| Amortization of intangible assets | 2,552 | 2,552 | 5,104 | 5,104 | ||||||||||||||
| Total operating expenses | 47,350 | 40,051 | 94,005 | 81,239 | ||||||||||||||
| Loss from operations | (4,845) | (6,830) | (10,385) | (14,199) | ||||||||||||||
| Interest and other income (expense), net: | ||||||||||||||||||
| Interest income | 1 | 4 | 2 | 11 | ||||||||||||||
| Interest expense | (42) | (57) | (70) | (99) | ||||||||||||||
| Other income (expense), net | (43) | (67) | (322) | (89) | ||||||||||||||
| Loss before provision for income taxes | (4,929) | (6,950) | (10,775) | (14,376) | ||||||||||||||
| Provision for income taxes | 224 | 141 | 581 | 236 | ||||||||||||||
| Net loss | $ | (5,153) | $ | (7,091) | $ | (11,356) | $ | (14,612) | ||||||||||
| Net loss per common share: | ||||||||||||||||||
| Basic and diluted | $ | (0.10) | $ | (0.15) | $ | (0.23) | $ | (0.30) | ||||||||||
| Weighted average number of shares used to compute net loss per common share: | ||||||||||||||||||
| Basic and diluted | 49,153 | 47,972 | 49,034 | 47,911 | ||||||||||||||
| (1) Includes stock-based compensation as follows: | ||||||||||||||||||
| Cost of revenue | $ | 377 | $ | 381 | $ | 728 | $ | 744 | ||||||||||
| Research and development | 1,300 | 1,091 | 2,486 | 2,112 | ||||||||||||||
| Sales and marketing | 1,464 | 1,338 | 2,743 | 2,577 | ||||||||||||||
| General and administrative | 2,134 | 1,529 | 4,037 | 3,221 | ||||||||||||||
| $ | 5,275 | $ | 4,339 | $ | 9,994 | $ | 8,654 | |||||||||||
| Calix, Inc. | |||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Results | |||||||||||||||||
| (Unaudited, in thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 29, | June 30, | June 29, | June 30, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| GAAP net loss | $ | (5,153) | $ | (7,091) | $ | (11,356) | $ | (14,612) | |||||||||
| Adjustments to reconcile GAAP net loss to non-GAAP net income: | |||||||||||||||||
| Stock-based compensation | 5,275 | 4,339 | 9,994 | 8,654 | |||||||||||||
| Amortization of intangible assets | 4,640 | 4,640 | 9,280 | 8,467 | |||||||||||||
| Non-GAAP net income | $ | 4,762 | $ | 1,888 | $ | 7,918 | $ | 2,509 | |||||||||
| Non-GAAP net income per common share | |||||||||||||||||
| Basic | $ | 0.10 | $ | 0.04 | $ | 0.16 | $ | 0.05 | |||||||||
| Diluted | $ | 0.10 | $ | 0.04 | $ | 0.16 | $ | 0.05 | |||||||||
| Weighted average shares used to compute non-GAAP net income per common share - Basic | 49,153 | 47,972 | 49,034 | 47,911 | |||||||||||||
| Weighted average shares used to compute non-GAAP net income per common share - Diluted (1) | 50,073 | 48,113 | 49,751 | 48,076 | |||||||||||||
| (1) Includes the dilutive effect of outstanding stock options, restricted stock units, and ESPP. |
| Calix, Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (Unaudited, in thousands) | ||||||||||
| June 29, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 69,379 | $ | 46,995 | ||||||
| Accounts receivable, net | 62,726 | 59,519 | ||||||||
| Inventory | 37,402 | 43,282 | ||||||||
| Deferred cost of revenue | 29,068 | 21,077 | ||||||||
| Prepaid expenses and other current assets | 8,126 | 5,677 | ||||||||
| Total current assets | 206,701 | 176,550 | ||||||||
| Property and equipment, net | 18,547 | 21,083 | ||||||||
| Goodwill | 116,175 | 116,175 | ||||||||
| Intangible assets, net | 53,021 | 62,301 | ||||||||
| Other assets | 1,591 | 1,788 | ||||||||
| Total assets | $ | 396,035 | $ | 377,897 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 16,714 | $ | 16,804 | ||||||
| Accrued liabilities | 36,664 | 36,176 | ||||||||
| Deferred revenue | 53,763 | 39,315 | ||||||||
| Total current liabilities | 107,141 | 92,295 | ||||||||
| Long-term portion of deferred revenue | 17,335 | 15,782 | ||||||||
| Other long-term liabilities | 1,394 | 745 | ||||||||
| Total liabilities | 125,870 | 108,822 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 1,238 | 1,222 | ||||||||
| Additional paid-in capital | 772,650 | 760,232 | ||||||||
| Accumulated other comprehensive income | 144 | 132 | ||||||||
| Accumulated deficit | (503,867) | (492,511) | ||||||||
| Total stockholders' equity | 270,165 | 269,075 | ||||||||
| Total liabilities and stockholders' equity | $ | 396,035 | $ | 377,897 | ||||||
| Calix, Inc. | ||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||
| (Unaudited, in thousands) | ||||||||||||
| Six Months Ended | ||||||||||||
| June 29, | June 30, | |||||||||||
| 2013 | 2012 | |||||||||||
| Operating activities: | ||||||||||||
| Net loss | $ | (11,356) | $ | (14,612) | ||||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 5,363 | 4,129 | ||||||||||
| Loss on retirement of property and equipment | 560 | 84 | ||||||||||
| Amortization of intangible assets | 9,280 | 8,467 | ||||||||||
| Stock-based compensation | 9,994 | 8,654 | ||||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Restricted cash | - | 754 | ||||||||||
| Accounts receivable, net | (3,207) | (8,656) | ||||||||||
| Inventory | 5,880 | 11,409 | ||||||||||
| Deferred cost of revenue | (7,991) | (4,398) | ||||||||||
| Prepaid expenses and other assets | (2,009) | 134 | ||||||||||
| Accounts payable | (90) | 5,997 | ||||||||||
| Accrued liabilities | 464 | (2,508) | ||||||||||
| Deferred revenue | 16,001 | 9,167 | ||||||||||
| Other long-term liabilities | 311 | (514) | ||||||||||
| Net cash provided by operating activities | 23,200 | 18,107 | ||||||||||
| Investing activities: | ||||||||||||
| Purchase of property and equipment | (3,265) | (6,296) | ||||||||||
| Net cash used in investing activities | (3,265) | (6,296) | ||||||||||
| Financing activities: | ||||||||||||
| Proceeds from exercise of stock options | 288 | 139 | ||||||||||
| Proceeds from employee stock purchase plan | 2,464 | 2,222 | ||||||||||
| Taxes withheld upon vesting of restricted stock units | (312) | (54) | ||||||||||
| Net cash provided by financing activities | 2,440 | 2,307 | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 9 | 29 | ||||||||||
| Net increase in cash and cash equivalents | 22,384 | 14,147 | ||||||||||
| Cash and cash equivalents at beginning of period | 46,995 | 38,938 | ||||||||||
| Cash and cash equivalents at end of period | $ | 69,379 | $ | 53,085 | ||||||||