Form: 8-K

Current report

April 28, 2015

Documents





Exhibit 99.1
Calix Reports First Quarter 2015 Financial Results

PETALUMA, CA – April 28, 2015 – Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the first quarter ended March 28, 2015. Revenue for the first quarter of 2015 was $91.0 million, an increase of 6.1% compared to $85.8 million for the first quarter of 2014.
“Our first quarter results reflected strong operating performance as we continued to execute on our Unified Access vision and strengthened our leadership position in the broadband access market," said Carl Russo, Calix president and CEO. "Our new fiber-enabled GigaCenters continued to gain traction with orders from more than 200 domestic and international service provider customers since the product launch late last year,” added Russo.
In a separate press release issued today, Calix announced that its board of directors has authorized a program to repurchase up to $40 million of its common stock. Please refer to that announcement for further information.
The company’s non-GAAP net loss for the first quarter of 2015 was $3.4 million, or $(0.07) per basic and fully diluted share, compared to a non-GAAP net loss of $1.5 million, or $(0.03) per basic and fully diluted share, for the first quarter of 2014. A reconciliation of GAAP and non-GAAP results is included as part of this release.
The GAAP net loss for the first quarter of 2015 was $11.9 million, or $(0.23) per basic and diluted share, compared to a GAAP net loss of $10.0 million, or $(0.20) per basic and diluted share, for the first quarter of 2014. A reconciliation of our first quarter 2015 operating results from non-GAAP to GAAP is provided below:


1
                                       
Calix Press Release
 
Page 2 


Calix, Inc.
(Unaudited, in thousands, except per share data)
Three Months Ended March 28, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
 
Stock-Based Compensation
 
Amortization of Intangible Assets
 
Acquisition-Related Costs
 
GAAP
Revenue
 
$
91,038

 
$
—

 
$
—

 
$
—

 
$
91,038

Cost of revenue
 
46,285

 
175

 
2,088

 
—

 
48,548

Gross profit
 
44,753

 
(175
)

(2,088
)
 
—


42,490

Gross margin
 
49.2
%
 
(0.2
)%
 
(2.3
)%
 
—
%
 
46.7
%
Operating expenses
 
48,148

 
3,487

 
2,552

 
190

 
54,377

Operating loss
 
(3,395
)
 
(3,662
)
 
(4,640
)
 
(190
)
 
(11,887
)
Interest and other income (expense), net
 
48

 
—

 
—

 
—

 
48

Loss before taxes
 
(3,347
)
 
(3,662
)
 
(4,640
)
 
(190
)
 
(11,839
)
Provision for income taxes
 
91

 
—

 
—

 
—

 
91

Net loss
 
$
(3,438
)
 
$
(3,662
)

$
(4,640
)
 
$
(190
)

$
(11,930
)
Weighted average shares used to compute
 
 
 
 
 
 
 
 
 
 
net loss per common share:
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
51,732

 
51,732

 
51,732

 
51,732

 
51,732

Net loss per common share:
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
$
(0.07
)
 
$
(0.07
)
 
$
(0.09
)
 
$
—

 
$
(0.23
)

                                       
Calix Press Release
 
Page 3 


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 2015 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. For more information about gigabit networks, visit www.calix.com/gigabit/.
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 (loss) and non-GAAP basic and diluted income (loss) 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 costs, which the Company believes are not indicative of its core operating results. Acquisition-related costs include legal fees and associated expenses incurred under a pre-existing contract between Occam and its retained advisor in connection with the Occam acquisition. 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.
Forward-Looking Statements
Statements made in this press release and the earnings call referencing the press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to, but are not limited to, the execution of a stock repurchase program. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to the risks described in our 2014 Form 10-K and our quarterly reports on Form 10-Q, each as filed with the SEC and available at www.sec.gov, particularly in the sections titled "Risk Factors." Forward-looking statements speak only as of the date the statements are made and are based on information available to us at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We assume no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.

                                       
Calix Press Release
 
Page 4 


Calix, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
March 28,
 
March 29,
 
 
 
 
2015
 
2014
Revenue
 
$
91,038

 
$
85,820

Cost of revenue:
 
 
 
 
 
Products and services (1)
 
46,460

 
46,806

 
Amortization of intangible assets
 
2,088

 
2,088

 
 
Total cost of revenue
 
48,548

 
48,894

Gross profit
 
42,490

 
36,926

Operating expenses:
 
 
 
 
 
Research and development (1)
 
21,914

 
19,630

 
Sales and marketing (1)
 
19,759

 
17,390

 
General and administrative (1)
 
10,152

 
7,251

 
Amortization of intangible assets
 
2,552

 
2,552

 
 
Total operating expenses
 
54,377

 
46,823

Loss from operations
 
(11,887
)
 
(9,897
)
Interest and other income (expense), net:
 
 
 
 
 
Interest income
 
379

 
4

 
Interest expense
 
(379
)
 
(57
)
 
Other income (expense), net
 
48

 
33

 
 
Total interest and other income (expense), net
 
48

 
(20
)
Loss before provision for income taxes
 
(11,839
)
 
(9,917
)
Provision for income taxes
 
91

 
110

Net loss
 
$
(11,930
)
 
$
(10,027
)
Net loss per common share:
 
 
 
 
 
 
Basic and diluted
 
$
(0.23
)

$
(0.20
)
Weighted average number of shares used to compute
 
 
 
 
 
net loss per common share:
 
 
 
 
 
 
Basic and diluted
 
51,732

 
50,271

 
 
 
 
 
 
 
(1) 
Includes stock-based compensation as follows:
 
Cost of revenue
 
$
175

 
$
354

 
Research and development
 
1,212

 
1,180

 
Sales and marketing
 
1,425

 
1,368

 
General and administrative
 
850

 
1,000

 
 
 
 
$
3,662

 
$
3,902



                                       
Calix Press Release
 
Page 5 


Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands, except per share data)
 
 
 
 
 

 
Three Months Ended

 
March 28,
 
March 29,

 
2015
 
2014
GAAP net loss
 
$
(11,930
)
 
$
(10,027
)
Adjustments to reconcile GAAP net loss to
 
 
 
 
non-GAAP net loss:
 
 
 
 
Stock-based compensation
 
3,662

 
3,902

Amortization of intangible assets
 
4,640

 
4,640

Acquisition-related costs
 
190

 
—

Non-GAAP net loss
 
$
(3,438
)
 
$
(1,485
)
Non-GAAP net loss per common share:
 
 
 
 
Basic and diluted
 
$
(0.07
)
 
$
(0.03
)
Weighted average shares used to compute non-GAAP
 

 


net loss per common share:
 
 
 
 
Basic and diluted
 
51,732

 
50,271





                                       
Calix Press Release
 
Page 6 


Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
 
 
 
 
 
 
 
March 28,
 
December 31,
 
 
2015
 
2014
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
29,618

 
$
48,829

Marketable securities
 
68,157

 
62,850

Restricted cash
 
—

 
295

Accounts receivable, net
 
39,000

 
30,744

Inventory
 
40,637

 
46,753

Deferred cost of revenue
 
1,762

 
5,080

Prepaid expenses and other current assets
 
10,779

 
12,936

 Total current assets
 
189,953

 
207,487

Property and equipment, net
 
19,403

 
20,144

Goodwill
 
116,175

 
116,175

Intangible assets, net
 
20,539

 
25,179

Other assets
 
1,113

 
1,236

 Total assets
 
$
347,183

 
$
370,221

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 
 
 
 
Accounts payable
 
$
12,792

 
$
23,629

Accrued liabilities
 
39,447

 
39,443

Deferred revenue
 
9,036

 
12,722

Total current liabilities
 
61,275

 
75,794

Long-term portion of deferred revenue
 
19,428

 
19,393

Other long-term liabilities
 
2,091

 
2,443

Total liabilities
 
82,794

 
97,630

Stockholders' equity:
 
 
 
 
Common stock
 
1,295

 
1,291

Additional paid-in capital
 
805,525

 
801,810

Accumulated other comprehensive income
 
89

 
80

Accumulated deficit
 
(542,520
)
 
(530,590
)
Total stockholders' equity
 
264,389

 
272,591

Total liabilities and stockholders' equity
 
$
347,183

 
$
370,221



                                       
Calix Press Release
 
Page 7 


Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 28,
 
March 29,
 
 
2015
 
2014
Operating activities:
 
 
 
 
Net loss
 
$
(11,930
)
 
$
(10,027
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
Depreciation and amortization
 
2,480

 
2,271

Loss on retirement of property and equipment
 
10

 
—

Amortization of intangible assets
 
4,640

 
4,640

Amortization of premiums related to available-for-sale securities
 
287

 
—

Stock-based compensation
 
3,662

 
3,902

Changes in operating assets and liabilities:
 
 
 
 
Restricted cash
 
295

 
—

Accounts receivable, net
 
(8,256
)
 
(614
)
Inventory
 
6,115

 
6,011

Deferred cost of revenue
 
3,318

 
3,233

Prepaid expenses and other assets
 
1,974

 
1,016

Accounts payable
 
(10,836
)
 
(12,276
)
Accrued liabilities
 
54

 
2,485

Deferred revenue
 
(3,651
)
 
(5,811
)
Other long-term liabilities
 
(59
)
 
(56
)
Net cash used in operating activities
 
(11,897
)
 
(5,226
)
Investing activities:
 
 
 
 
Purchases of property and equipment
 
(1,742
)
 
(1,908
)
Purchases of marketable securities
 
(17,004
)
 
—

Maturities of marketable securities
 
11,450

 
—

Net cash used in investing activities
 
(7,296
)
 
(1,908
)
Financing activities:
 
 
 
 
Proceeds from exercise of stock options
 
564

 
21

Taxes paid for awards vested under equity incentive plans
 
(506
)
 
(473
)
Net cash provided by (used in) financing activities
 
58

 
(452
)
Effect of exchange rate changes on cash and cash equivalents
 
(76
)
 
8

Net decrease in cash and cash equivalents
 
(19,211
)
 
(7,578
)
Cash and cash equivalents at beginning of period
 
48,829

 
82,747

Cash and cash equivalents at end of period
 
$
29,618

 
$
75,169



                                       
Calix Press Release
 
Page 8 


Investor Inquiries:
David H. Allen
408-474-0080
David.Allen@calix.com

William J. Atkins
408-474-0052
William.Atkins@calix.com