Calix Reports Fourth Quarter 2015 Financial Results
/EINPresswire.com/ -- PETALUMA, CA--(Marketwired - February 09, 2016) - Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the fourth quarter ended December 31, 2015. Revenue for the fourth quarter of 2015 was $105.0 million, a decrease of 5.9% compared to $111.6 million for the fourth quarter of 2014.
"Our fourth quarter results were at the upper end of guidance as customer shipments were within expectations," said Carl Russo, Calix, Inc. President and CEO. "Looking back over the quarter and the year, Calix, Inc. introduced AXOS, our new Software Defined Access platform, as well as announced our new products that leverage next generation technology standards such as G.fast and NG-PON2. In 2015 our customers utilized our latest solutions to create a superior broadband experience for their subscribers. We are excited to see this interest strengthen as we move into 2016," added Russo.
The company's non-GAAP net loss for the fourth quarter of 2015 was $1.7 million, or $(0.03) per fully diluted share, compared to a non-GAAP net income of $6.5 million, or $0.13 per fully diluted share, for the fourth quarter of 2014. A reconciliation of GAAP and non-GAAP results is included as part of this release.
"During the quarter, we repurchased $16.1 million worth of common stock via our previously announced $40 million stock buyback authorization," said William Atkins, Calix, Inc. Executive Vice President and CFO. "Given our long-term outlook for the company, we continue to view share repurchases as an attractive investment at current levels," added Atkins.
The GAAP net loss for the fourth quarter of 2015 was $9.5 million, or $(0.19) per basic and diluted share, compared to a GAAP net loss of $3.0 million, or $(0.06) per basic and diluted share, for the fourth quarter of 2014. A reconciliation of our fourth quarter 2015 operating results from non-GAAP to GAAP is provided below:
Calix, Inc.
(Unaudited, in thousands, except per share data)
Three Months Ended December 31, 2015
Amortization
of Acquisition-
Stock-Based Intangible Related
Non-GAAP Compensation Assets Costs GAAP
-------- ------------ ------------ ------------ --------
Revenue $104,999 $ - $ - $ - $104,999
Cost of
revenue 56,213 160 2,089 - 58,462
-------- ------------ ------------ ------------ --------
Gross profit 48,786 (160) (2,089) - 46,537
Gross margin 46.5% (0.2)% (2.0)% -% 44.3%
Operating
expenses 50,644 3,052 2,552 24 56,272
-------- ------------ ------------ ------------ --------
Operating
loss (1,858) (3,212) (4,641) (24) (9,735)
Interest and
other
income
(expense),
net 346 - - - 346
-------- ------------ ------------ ------------ --------
Loss before
provision
for income
taxes (1,512) (3,212) (4,641) (24) (9,389)
Provision
for income
taxes 157 - - - 157
-------- ------------ ------------ ------------ --------
Net loss $ (1,669) $ (3,212) $ (4,641) $ (24) $ (9,546)
======== ============ ============ ============ ========
Weighted
average
diluted
shares used
to compute
net loss
per common
share 50,578 50,578 50,578 50,578 50,578
======== ============ ============ ============ ========
Net loss per
diluted
share $ (0.03) $ (0.06) $ (0.09) $ - $ (0.19)
======== ============ ============ ============ ========
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 fourth quarter 2015 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) 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 (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, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
-------------------------- --------------------------
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
------------ ------------ ------------ ------------
Revenue $ 104,999 $ 111,633 $ 407,463 $ 401,227
Cost of revenue:
Products and
services (1) 56,373 58,104 208,681 215,085
Amortization of
intangible assets 2,089 2,088 8,353 8,353
------------ ------------ ------------ ------------
Total cost of
revenue 58,462 60,192 217,034 223,438
------------ ------------ ------------ ------------
Gross profit 46,537 51,441 190,429 177,789
Operating expenses:
Research and
development (1) 22,829 21,207 89,714 80,311
Sales and
marketing (1) 21,165 21,721 78,563 76,283
General and
administrative
(1) 9,726 8,814 38,454 31,371
Amortization of
intangible assets 2,552 2,552 10,208 10,208
------------ ------------ ------------ ------------
Total operating
expenses 56,272 54,294 216,939 198,173
------------ ------------ ------------ ------------
Loss from operations (9,735) (2,853) (26,510) (20,384)
Interest and other
income (expense),
net:
Interest income 271 643 1,285 729
Interest expense (223) (632) (1,144) (806)
Other income
(expense), net 298 107 571 228
------------ ------------ ------------ ------------
Total interest
and other
income
(expense), net 346 118 712 151
------------ ------------ ------------ ------------
Loss before
provision for
income taxes (9,389) (2,735) (25,798) (20,233)
Provision for income
taxes 157 253 535 581
------------ ------------ ------------ ------------
Net loss $ (9,546) $ (2,988) $ (26,333) $ (20,814)
============ ============ ============ ============
Net loss per common
share:
Basic and
diluted $ (0.19) $ (0.06) $ (0.51) $ (0.41)
============ ============ ============ ============
Weighted average
number of shares
used to compute net
loss per common
share:
Basic and
diluted 50,578 51,300 51,489 50,808
============ ============ ============ ============
--------------------
(1) Includes stock-
based compensation
as follows:
Cost of revenue $ 160 $ 206 $ 709 $ 1,120
Research and
development 1,138 1,363 4,797 5,056
Sales and
marketing 943 1,455 4,712 5,601
General and
administrative 971 874 3,587 4,240
------------ ------------ ------------ ------------
$ 3,212 $ 3,898 $ 13,805 $ 16,017
============ ============ ============ ============
Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands, except per share data)
Three Months Ended Twelve Months Ended
-------------------------- -------------------------
December 31, December 31, December 31, December 31,
2015 2014 2015 2014
------------ ------------ ------------ ------------
GAAP net loss $ (9,546) $ (2,988) $ (26,333)$ (20,814)
Adjustments to
reconcile GAAP net
loss tonon-GAAP net
income (loss):
Stock-based
compensation 3,212 3,898 13,805 16,017
Amortization of
intangible assets 4,641 4,640 18,561 18,561
Acquisition-related
costs 24 978 372 978
------------ ------------ ------------ ------------
Non-GAAP net income
(loss) $ (1,669) $ 6,528 $ 6,405 $ 14,742
============ ============ ============ ============
Non-GAAP net income
(loss) per common
share:
Basic $ (0.03) $ 0.13 $ 0.12 $ 0.29
============ ============ ============ ============
Diluted $ (0.03) $ 0.13 $ 0.12 $ 0.29
============ ============ ============ ============
Weighted average
shares used to
compute non-GAAP net
income (loss) per
common share:
Basic 50,578 51,300 51,489 50,808
============ ============ ============ ============
Diluted (1) 50,578 52,047 52,038 51,450
============ ============ ============ ============
(1) Includes the dilutive effect of outstanding stock options, restricted
stock units and ESPP.
Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
December 31, December 31,
2015 2014
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 23,626 $ 48,829
Marketable securities 49,964 62,850
Restricted cash - 295
Accounts receivable, net 47,155 30,744
Inventory 47,667 46,753
Deferred cost of revenue 4,918 5,080
Prepaid expenses and other current assets 9,470 12,936
------------ ------------
Total current assets 182,800 207,487
Property and equipment, net 17,149 20,144
Goodwill 116,175 116,175
Intangible assets, net 6,618 25,179
Other assets 1,144 1,236
------------ ------------
Total assets $ 323,886 $ 370,221
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,603 $ 23,629
Accrued liabilities 35,512 39,443
Deferred revenue 12,124 12,722
------------ ------------
Total current liabilities 67,239 75,794
Long-term portion of deferred revenue 19,569 19,393
Other long-term liabilities 1,293 2,443
------------ ------------
Total liabilities 88,101 97,630
------------ ------------
Stockholders' equity:
Common stock 1,326 1,291
Additional paid-in capital 818,754 801,810
Accumulated other comprehensive income (loss) (195) 80
Accumulated deficit (556,923) (530,590)
Treasury stock (27,177) -
------------ ------------
Total stockholders' equity 235,785 272,591
------------ ------------
Total liabilities and stockholders' equity $ 323,886 $ 370,221
============ ============
Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Twelve Months Ended
--------------------------
December 31, December 31,
2015 2014
------------ ------------
Operating activities:
Net loss $ (26,333) $ (20,814)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 10,262 9,263
Loss on retirement of property and equipment 24 50
Amortization of intangible assets 18,561 18,561
Amortization of premiums relating to
available-for-sale securities 907 574
Gain on sale of available-for-sale
securities - (1)
Stock-based compensation 13,805 16,017
Changes in operating assets and liabilities:
Restricted cash 295 -
Accounts receivable, net (16,411) 12,776
Inventory (915) 4,319
Deferred cost of revenue 162 15,996
Prepaid expenses and other assets 2,889 (5,908)
Accounts payable (4,021) 467
Accrued liabilities (3,781) 7,440
Deferred revenue (422) (21,178)
Other long-term liabilities (363) 513
------------ ------------
Net cash provided by (used in) operating
activities (5,341) 38,075
------------ ------------
Investing activities:
Purchases of property and equipment (7,278) (11,961)
Purchases of marketable securities (60,002) (67,698)
Sales of marketable securities - 615
Maturities of marketable securities 71,945 3,600
------------ ------------
Net cash provided by (used in) investing
activities 4,665 (75,444)
------------ ------------
Financing activities:
Proceeds from exercise of stock options 638 1,668
Proceeds from employee stock purchase plan 4,888 4,627
Payments for repurchases of common stock (27,177) -
Taxes paid for awards vested under equity
incentive plans (2,352) (2,720)
Payments for debt issuance costs (138) -
------------ ------------
Net cash provided by (used in) financing
activities (24,141) 3,575
------------ ------------
Effect of exchange rate changes on cash and cash
equivalents (386) (124)
------------ ------------
Net decrease in cash and cash equivalents (25,203) (33,918)
Cash and cash equivalents at beginning of period 48,829 82,747
------------ ------------
Cash and cash equivalents at end of period $ 23,626 $ 48,829
============ ============
Investor Inquiries:
Thomas J. Dinges, CFA
408-474-0080
Tom.Dinges@calix.com
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