Exhibit 99.1
Calix Reports First Quarter 2013 Financial Results
Strong demand bucks seasonal trend resulting in record first quarter revenue
PETALUMA, CA – April 25, 2013 – 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:
Calix, Inc. | ||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||
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 | ) |
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Calix Press Release | Page 2 |
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 Press Release | Page 3 |
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 Press Release | Page 4 |
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 Press Release | Page 5 |
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 goods sold | 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 Press Release | Page 6 |
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 |
Investor Inquiries:
David H. Allen
408-474-0080
David.Allen@Calix.com