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Calix Reports Third Quarter 2017 Financial ResultsPETALUMA, Calif., Nov. 07, 2017 (GLOBE NEWSWIRE) -- Calix, Inc. (NYSE:CALX) today announced unaudited financial results for the third quarter ended September 30, 2017. Revenue for the third quarter of 2017 was a third quarter record $128.8 million, an increase of 6.3% compared to $121.2 million for the third quarter of 2016. “Revenue was a third quarter record, increasing by more than 6 percent compared to last year. This marks our seventh consecutive quarter of year-over-year revenue growth, led by solid expansion in services revenue and continued strong momentum in our AXOS and Calix Cloud product offerings,” said Calix Inc. President and CEO Carl Russo. “With last week’s introduction of EXOS - the Experience OS - at our ConneXions annual conference, Calix announced the first carrier class premises operating system designed specifically to help service providers deliver a managed experience for the smart home and business, opening significant potential new revenue streams for our customers,” added Russo. The GAAP net loss for the third quarter of 2017 was $17.9 million, or ($0.35) per basic and fully diluted share, compared to a GAAP net income of $0.6 million, or $0.01 per basic and fully diluted share, for the third quarter of 2016. “Demonstrating the increased value our next generation products provide to our customers, we saw another quarter of sequential improvement in product gross margin,” said Cory Sindelar, Calix, Inc. CFO. “However, our overall gross margin was impacted by stronger than expected services revenue as the team completed more projects than anticipated during the quarter. Looking ahead, we expect our services gross margin to improve in the fourth quarter,” added Sindelar. The Company’s non-GAAP net loss for the third quarter of 2017 was $14.2 million, or ($0.28) per fully diluted share, compared to a non-GAAP net income of $6.1 million, or $0.12 per fully diluted share, for the third quarter of 2016. Reconciliations of our operating results and income (loss) per diluted share from GAAP to non-GAAP are provided in this release. Outlook Calix is providing forward-looking estimates for fourth quarter and full year 2017 results as follows:
The Company estimates that GAAP EPS will be approximately $0.09 lower for fourth quarter of 2017 due to the inclusion of stock-based compensation and restructuring charges. A reconciliation of the GAAP to non-GAAP outlook is provided in this release. Restructuring Plan In March 2017, the Company adopted a restructuring plan that seeks to realign the Company’s business to increase its focus towards its investments in innovative Software Defined Access and cloud products, while reducing its cost structure in the traditional systems business. The Company has recognized restructuring charges of approximately $2.3 million for the nine months ended September 30, 2017, consisting primarily of severance and other one-time termination benefits. During the fourth quarter of 2017, the Company intends to take further actions under this plan and expects to incur revised total pretax estimated charges of up to $4.0 million for the full year related to this plan. As a result of these charges in fiscal 2017, the Company expects to see additional expense reduction benefits in fiscal 2018. 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 third quarter 2017 financial results. A live audio webcast and replay of the call will be available in the Investor Relations section of the Calix website 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, Inc. (NYSE:CALX) pioneered Software Defined Access and cloud products focused on access networks and the subscriber. Its portfolio of Intelligent Access systems and software combines AXOS, the revolutionary platform for access, and EXOS, the experience OS, with Calix Cloud, innovative cloud products for network data analytics and subscriber experience assurance. Together, they enable communications service providers to transform their businesses and be the winning service providers of tomorrow. For more information, visit the Calix website at www.calix.com. 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, statements about potential customer or market opportunities, opportunities with existing and prospective customers, estimates and planned cost savings related to its restructuring plan and future financial performance (including the outlook for fourth quarter of fiscal 2017 and full year of 2017). Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to fluctuations in the Company’s financial and operating results, the capital spending decisions of its customers, changes in regulations and/or government sponsored programs, competition, its ability to achieve market acceptance of new products and solutions, its ability to grow its customer base, fluctuations in costs associated with its products and services including higher costs due to project delays and changes, cost overruns and other unanticipated factors, as well as the risks and uncertainties described in its annual reports on Form 10-K and its 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 the Company at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Calix assumes 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. 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 gross margin, non-GAAP operating expenses, 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, amortization of acquisition-related intangible assets, restructuring charges and acquisition-related costs, 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.
Thomas J. Dinges, CFA |