Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 29, 2019 | Jul. 19, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CALIX, INC | |
Entity Central Index Key | 0001406666 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 29, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,440,609 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 34,942 | $ 49,646 |
Restricted cash | 628 | 628 |
Accounts receivable, net | 60,186 | 67,026 |
Inventory | 45,360 | 50,151 |
Prepaid expenses and other current assets | 7,094 | 7,306 |
Total current assets | 148,210 | 174,757 |
Property and equipment, net | 29,105 | 24,945 |
Right-of-use operating leases | 16,422 | 0 |
Goodwill | 116,175 | 116,175 |
Other assets | 1,336 | 1,203 |
Total assets | 311,248 | 317,080 |
Current liabilities: | ||
Accounts payable | 37,522 | 40,209 |
Accrued liabilities | 47,657 | 57,869 |
Deferred revenue | 18,528 | 15,600 |
Line of credit | 25,000 | 30,000 |
Total current liabilities | 128,707 | 143,678 |
Long-term portion of deferred revenue | 17,792 | 17,496 |
Operating leases | 15,045 | 0 |
Other long-term liabilities | 2,498 | 3,972 |
Total liabilities | 164,042 | 165,146 |
Commitments and contingencies (See Note 6) | ||
Stockholders’ equity: | ||
Preferred stock, $0.025 par value; 5,000 shares authorized; no shares issued and outstanding as of June 29, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.025 par value; 100,000 shares authorized; 60,773 shares issued and 55,443 shares outstanding as of June 29, 2019, and 59,285 shares issued and 53,955 shares outstanding as of December 31, 2018 | 1,520 | 1,482 |
Additional paid-in capital | 886,076 | 876,073 |
Accumulated other comprehensive loss | (710) | (753) |
Accumulated deficit | (699,694) | (684,882) |
Treasury stock, 5,330 shares as of June 29, 2019 and December 31, 2018 | (39,986) | (39,986) |
Total stockholders’ equity | 147,206 | 151,934 |
Total liabilities and stockholders’ equity | $ 311,248 | $ 317,080 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 29, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 60,773,000 | 59,285,000 |
Common stock, shares outstanding | 55,443,000 | 53,955,000 |
Treasury stock, shares | 5,330,000 | 5,330,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | ||
Revenue: | |||||
Revenue | $ 100,304 | $ 111,702 | $ 189,654 | $ 211,105 | |
Cost of revenue: | |||||
Cost of revenue | 55,636 | 60,836 | 106,643 | 118,180 | |
Gross profit | 44,668 | 50,866 | 83,011 | 92,925 | |
Operating expenses: | |||||
Research and development | [1] | 20,700 | 22,101 | 40,030 | 47,637 |
Sales and marketing | [1] | 19,734 | 20,527 | 39,073 | 40,428 |
General and administrative | [1] | 9,165 | 10,371 | 17,952 | 19,466 |
Restructuring charges | 0 | 793 | 0 | 6,133 | |
Gain on sale of product line | 0 | 0 | 0 | (6,704) | |
Total operating expenses | 49,599 | 53,792 | 97,055 | 106,960 | |
Loss from operations | (4,931) | (2,926) | (14,044) | (14,035) | |
Interest and other expense, net: | |||||
Interest expense, net | (142) | (165) | (250) | (388) | |
Other income (expense), net | 123 | 456 | (268) | 162 | |
Total interest and other income (expense), net | (19) | 291 | (518) | (226) | |
Loss before provision for income taxes | (4,950) | (2,635) | (14,562) | (14,261) | |
Provision for income taxes | 95 | 158 | 250 | 268 | |
Net loss | $ (5,045) | $ (2,793) | $ (14,812) | $ (14,529) | |
Net loss per common share: | |||||
Basic and diluted (in dollars per share) | $ (0.09) | $ (0.05) | $ (0.27) | $ (0.28) | |
Weighted-average number of shares used to compute net loss per common share: | |||||
Basic and diluted (in shares) | 54,624 | 52,290 | 54,339 | 51,952 | |
Other comprehensive income, net of tax: | |||||
Other comprehensive income, net of tax - foreign currency translation adjustments, net | $ (223) | $ (507) | $ 43 | $ (228) | |
Comprehensive loss | (5,268) | (3,300) | (14,769) | (14,757) | |
Systems | |||||
Revenue: | |||||
Revenue | 92,833 | 102,563 | 175,193 | 195,854 | |
Cost of revenue: | |||||
Cost of revenue | [1] | 49,561 | 54,363 | 94,162 | 105,996 |
Services | |||||
Revenue: | |||||
Revenue | 7,471 | 9,139 | 14,461 | 15,251 | |
Cost of revenue: | |||||
Cost of revenue | [1] | $ 6,075 | $ 6,473 | $ 12,481 | $ 12,184 |
[1] | Includes stock-based compensation as follows: Three and Six Months Ended June 29, 2019 and June 30, 2018; Cost of revenue: Products - $123, $141, $278, $253 ; Services - $93, $90, $192, $167; Research and development - $873, $814, $1,889, $1,797; Sales and marketing - $814, $785, $1,888, $1,635; General administrative - $666, $714, $1,467, $1,449; |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Systems | ||||
Stock-based compensation | $ 123 | $ 141 | $ 278 | $ 253 |
Services | ||||
Stock-based compensation | 93 | 90 | 192 | 167 |
Research and development | ||||
Stock-based compensation | 873 | 814 | 1,889 | 1,797 |
Sales and marketing | ||||
Stock-based compensation | 814 | 785 | 1,888 | 1,635 |
General and administrative | ||||
Stock-based compensation | $ 666 | $ 714 | $ 1,467 | $ 1,449 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Treasury Stock |
Beginning Balance, shares at Dec. 31, 2017 | 51,509 | |||||
Balance at beginning of period at Dec. 31, 2017 | $ 144,963 | $ 1,421 | $ 851,054 | $ (169) | $ (667,357) | $ (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 5,301 | 5,301 | ||||
Exercise of stock options, shares | 8 | |||||
Exercise of stock options | 51 | $ 0 | 51 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 749 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (7) | $ 18 | (25) | |||
Stock issued under employee stock purchase plans, shares | 786 | |||||
Stock issued under employee stock purchase plans | 3,836 | $ 21 | 3,815 | |||
Net loss | (14,529) | (14,529) | ||||
Other comprehensive income | (228) | (228) | ||||
Ending Balance, shares at Jun. 30, 2018 | 53,052 | |||||
Balance at end of period at Jun. 30, 2018 | 141,160 | $ 1,460 | 860,196 | (397) | (680,113) | (39,986) |
Beginning Balance, shares at Mar. 31, 2018 | 51,717 | |||||
Balance at beginning of period at Mar. 31, 2018 | 138,039 | $ 1,426 | 853,809 | 110 | (677,320) | (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 2,544 | 2,544 | ||||
Exercise of stock options, shares | 7 | |||||
Exercise of stock options | 43 | $ 0 | 43 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 521 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (3) | $ 13 | (16) | |||
Stock issued under employee stock purchase plans, shares | 807 | |||||
Stock issued under employee stock purchase plans | 3,837 | $ 21 | 3,816 | |||
Net loss | (2,793) | (2,793) | ||||
Other comprehensive income | (507) | (507) | ||||
Ending Balance, shares at Jun. 30, 2018 | 53,052 | |||||
Balance at end of period at Jun. 30, 2018 | $ 141,160 | $ 1,460 | 860,196 | (397) | (680,113) | (39,986) |
Beginning Balance, shares at Dec. 31, 2018 | 53,955 | 53,955 | ||||
Balance at beginning of period at Dec. 31, 2018 | $ 151,934 | $ 1,482 | 876,073 | (753) | (684,882) | (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 5,714 | 5,714 | ||||
Exercise of stock options, shares | 100 | 55 | ||||
Exercise of stock options | $ 326 | $ 2 | 324 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 501 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (156) | $ 13 | (169) | |||
Stock issued under employee stock purchase plans, shares | 932 | |||||
Stock issued under employee stock purchase plans | 4,157 | $ 23 | 4,134 | |||
Net loss | (14,812) | (14,812) | ||||
Other comprehensive income | $ 43 | 43 | ||||
Ending Balance, shares at Jun. 29, 2019 | 55,443 | 55,443 | ||||
Balance at end of period at Jun. 29, 2019 | $ 147,206 | $ 1,520 | 886,076 | (710) | (699,694) | (39,986) |
Beginning Balance, shares at Mar. 30, 2019 | 54,164 | |||||
Balance at beginning of period at Mar. 30, 2019 | 145,841 | $ 1,488 | 879,475 | (487) | (694,649) | (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | $ 2,569 | 2,569 | ||||
Exercise of stock options, shares | 7 | 6 | ||||
Exercise of stock options | $ 35 | $ 0 | 35 | |||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld, shares | 334 | |||||
Issuance of vested performance restricted stock units and restricted stock units, net of taxes withheld | (130) | $ 8 | (138) | |||
Stock issued under employee stock purchase plans, shares | 939 | |||||
Stock issued under employee stock purchase plans | 4,159 | $ 24 | 4,135 | |||
Net loss | (5,045) | (5,045) | ||||
Other comprehensive income | $ (223) | (223) | ||||
Ending Balance, shares at Jun. 29, 2019 | 55,443 | 55,443 | ||||
Balance at end of period at Jun. 29, 2019 | $ 147,206 | $ 1,520 | $ 886,076 | $ (710) | $ (699,694) | $ (39,986) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net loss | $ (14,812) | $ (14,529) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 5,714 | 5,301 |
Depreciation and amortization | 4,644 | 4,942 |
Loss on retirement of property and equipment | 138 | 247 |
Gain on sale of product line | 0 | (6,704) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 6,840 | 11,348 |
Inventory | 4,791 | 9,524 |
Prepaid expenses and other assets | 1,697 | (1,066) |
Accounts payable | (2,676) | (10,315) |
Accrued liabilities | (10,314) | (2,589) |
Deferred revenue | 3,223 | 1,180 |
Other long-term liabilities | (2,496) | (17) |
Net cash used in operating activities | (3,251) | (2,678) |
Investing activities: | ||
Purchases of property and equipment | (9,538) | (2,955) |
Proceeds from sale of product line | 0 | 10,350 |
Net cash provided by (used in) investing activities | (9,538) | 7,395 |
Financing activities: | ||
Proceeds from exercise of stock options | 326 | 51 |
Proceeds from employee stock purchase plans | 4,157 | 3,836 |
Taxes paid for awards vested under equity incentive plan | (156) | (7) |
Payments related to financing arrangements | (1,267) | 0 |
Proceeds from line of credit | 89,000 | 288,064 |
Repayment of line of credit | (94,000) | (288,064) |
Net cash provided by (used in) financing activities | (1,940) | 3,880 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 25 | (197) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (14,704) | 8,400 |
Cash, cash equivalents and restricted cash at beginning of period | 50,274 | 39,775 |
Cash, cash equivalents and restricted cash at end of period | $ 35,570 | $ 48,175 |
Company and Basis of Presentati
Company and Basis of Presentation | 6 Months Ended |
Jun. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Basis of Presentation | Company and Basis of Presentation Company Calix, Inc. (together with its subsidiaries, “Calix” or the “Company”) was incorporated in August 1999 and is a Delaware corporation. The Company is a leading global provider of cloud and software platforms, systems and services required to deliver the unified access network and smart home and business services of tomorrow. The Company’s platforms and services help its customers build next generation networks by embracing a DevOps operating model, optimizing the subscriber experience by leveraging big data analytics and turn the complexity of the smart home and business into new revenue streams. The Company's cloud and software platforms, systems and services enable communication service providers (“CSPs”) to provide a wide range of revenue-generating services, from basic voice and data to advanced broadband services, over legacy and next-generation access networks. The Company focuses on CSP access networks, the portion of the network that governs available bandwidth and determines the range and quality of services that can be offered to subscribers. Basis of Presentation The accompanying unaudited condensed consolidated financial statements, including the accounts of Calix, Inc. and its wholly-owned subsidiaries, have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (“GAAP”) can be condensed or omitted. In the opinion of management, the financial statements include all normal and recurring adjustments that are considered necessary for the fair presentation of the Company’s financial position and operating results. All intercompany balances and transactions have been eliminated in consolidation. The Condensed Consolidated Balance Sheet at December 31, 2018 has been derived from the audited financial statements at that date. The results of the Company’s operations can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year or any future periods. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . The Company’s fiscal year begins on January 1 st and ends on December 31 st . Quarterly periods are based on a 4-4-5 calendar with the first, second and third quarters ending on the 13th Saturday of each fiscal period. As a result, the Company had one fewer day in the six months ended June 29, 2019 than in the six months ended June 30, 2018 . The preparation of financial statements in conformity with GAAP for interim financial reporting requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2018 . The Company’s significant accounting policies did not change during the six months ended June 29, 2019 , except for those impacted by the newly adopted accounting standard below. Newly Adopted Accounting Standard Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires recognition of an asset and liability for lease arrangements longer than twelve months. The Company adopted the new standard effective January 1, 2019 using the effective date approach which eliminates the need to restate amounts presented prior to that date. The Company also elected the package of practical expedients but not the hindsight practical expedient. The adoption had a material impact on the Company's Condensed Consolidated Balance Sheets but did not impact the Company's Condensed Consolidated Statements of Comprehensive Loss or Cash Flows. Upon adoption on January 1, 2019, the Company recognized an operating lease right-of-use asset of $15.8 million and a lease liability of $16.7 million . Recent Accounting Pronouncements Not Yet Adopted There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 29, 2019 , as compared to the recent accounting pronouncements described in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, that are of significance or potential significance to the Company. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 29, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following (in thousands): June 29, December 31, Cash and cash equivalents: Cash $ 34,928 $ 45,806 Money market funds 14 3,840 Total cash and cash equivalents 34,942 49,646 Restricted cash 628 628 $ 35,570 $ 50,274 The carrying amounts of the Company’s money market funds approximate their fair values due to their nature, duration and short maturities. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 29, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands): June 29, December 31, Accounts receivable $ 60,583 $ 67,396 Allowance for doubtful accounts (397 ) (370 ) $ 60,186 $ 67,026 Inventory consisted of the following (in thousands): June 29, December 31, Raw materials $ 6,207 $ 10,815 Finished goods 39,153 39,336 $ 45,360 $ 50,151 Property and equipment, net consisted of the following (in thousands): June 29, December 31, Test equipment $ 37,683 $ 39,148 Computer equipment and software 38,185 34,697 Furniture and fixtures 2,331 1,976 Leasehold improvements 1,758 3,559 Total 79,957 79,380 Accumulated depreciation and amortization (50,852 ) (54,435 ) $ 29,105 $ 24,945 Accrued liabilities consisted of the following (in thousands): June 29, December 31, Compensation and related benefits $ 14,076 $ 19,811 Warranty and retrofit 7,910 8,547 Customer rebates/prepayments 4,906 6,103 Accrued professional and consulting fees 5,910 6,060 Operating leases 2,381 — Current portion of equipment financing arrangements 1,720 1,778 Non-income related taxes 1,503 1,288 Freight 1,021 1,187 Insurance 776 917 Excess and obsolete inventory at suppliers 654 2,667 Product return reserve 885 880 Accrued other 5,915 8,631 $ 47,657 $ 57,869 Warranty and Retrofit The Company provides a standard warranty for its hardware products. Hardware generally has a one -, three - or five -year standard warranty from the date of shipment. Under certain circumstances, the Company also provides fixes on specifically identified performance failures for products that are outside of the standard warranty period and recognizes estimated costs related to retrofit activities upon identification of such product failures. The Company accrues for potential warranty and retrofit claims based on the Company’s historical product failure rates and historical costs incurred in correcting product failures along with other relevant information related to any specifically identified product failures. The Company’s warranty and retrofit accruals are based on estimates of losses that are probable based on information available. The adequacy of the accrual is reviewed on a periodic basis and adjusted, if necessary, based on additional information as it becomes available. Changes in the Company’s warranty and retrofit accrual are as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Balance at beginning of period $ 8,166 $ 8,097 $ 8,547 $ 8,708 Provision for warranty and retrofit charged to cost of revenue 860 1,560 1,567 3,029 Utilization of reserve (1,116 ) (1,469 ) (2,204 ) (3,549 ) Balance at end of period $ 7,910 $ 8,188 $ 7,910 $ 8,188 |
Credit Agreements
Credit Agreements | 6 Months Ended |
Jun. 29, 2019 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | Credit Agreements Line of Credit On August 7, 2017, the Company entered into a loan and security agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). The Loan Agreement provides for a senior secured revolving credit facility with SVB, pursuant to which SVB agreed to make revolving advances available to the Company in a principal amount of up to $30.0 million based on a customary accounts receivable borrowing base, subject to certain exceptions for accounts originating outside the United States and certain specific accounts, which could reduce the amount available to the Company under the credit facility. The credit facility includes affirmative and negative covenants applicable to the Company and its subsidiaries. Furthermore, the Loan Agreement requires the Company to maintain a liquidity ratio at minimum levels set forth in more detail in the Loan Agreement. The credit facility also includes events of default, the occurrence and continuation of which would provide SVB with the right to demand immediate repayment of any principal and unpaid interest under the credit facility, and to exercise remedies against the Company and the collateral securing the loans under the credit facility. In February 2019, the Company entered into a third amendment to the Loan Agreement to reduce the required minimum level of the Adjusted Quick Ratio ("AQR") for the first half of 2019 and the required minimum Adjusted EBITDA for the first fiscal quarter of 2019 to accommodate the increased costs and use of cash that the Company anticipated for the first half of 2019 related to activities to mitigate the impact of the U.S. tariffs. As of June 29, 2019 , the Company was in compliance with these requirements. As of June 29, 2019 , the Company had borrowings outstanding of $25.0 million under the line of credit. In May 2019, the Company entered into a five -month, irrevocable standby letter of credit for $5.0 million , which reduces the borrowing capacity of the line to $25.0 million . The Company's interest rate on the line of credit was 7.0% as of June 29, 2019 and 6.5% as of June 30, 2018 . Financing Arrangements During 2018, the Company entered into financing arrangements to purchase lab and test equipment for approximately $5.1 million . Each agreement is to be paid over 36 months with a weighted average interest rate of 6.2% . As of June 29, 2019 , there was $3.8 million outstanding under these financing arrangements, which is included in accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet. During 2017 and 2019, t he Company entered into financing arrangements for consulting services for up to $4.2 million in connection with the Company’s enterprise resource planning (“ERP”) implementation. The current amounts due under this agreement are to be paid over a weighted average term of 2.5 years with a weighted average interest rate of 6.9% . As of June 29, 2019 , there was $1.1 million outstanding under this arrangement, which is included in accrued liabilities and other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases office space under non-cancelable operating leases. Certain of the Company’s operating leases contain renewal options and rent acceleration clauses. Future minimum payments under the non-cancelable operating leases consisted of the following as of June 29, 2019 (in thousands): Period Minimum Future Lease Payments Remainder of 2019 $ 1,687 2020 3,661 2021 3,447 2022 3,298 2023 3,362 Thereafter 6,100 Total future minimum lease payments 21,555 Less imputed interest (4,129 ) $ 17,426 Operating lease liability consisted of the following (in thousands): June 29, Accrued liabilities - current portion of operating leases $ 2,381 Operating leases 15,045 $ 17,426 The Company leases its headquarters office space in San Jose, California under a lease agreement that expires in December 2025. The future minimum lease payments under the lease are $15.1 million and are included in the table above. The above table also includes future minimum lease payments for the Company's other office facilities, which expire at various dates through 2025. In August 2018, the Company entered into a new office lease agreement for 22,000 square feet in Petaluma, California. The lease commenced in February 2019 for a term of 64 months . The future minimum lease payments of $2.7 million are included in the table above. The Company recorded a right-of-use operating lease asset and operating lease liability of $2.2 million in the first quarter of 2019. The Company’s previous lease in Petaluma, California expired in March 2019. In July 2019, the Company entered into a new office lease agreement for 9,000 square feet in Plymouth, Minnesota. The lease will commence in December 2019 for a term of 64 months . T he aggregate lease commitment is $0.8 million and is not included in the table above. The weighted average discount rate for the Company's operating leases as of June 29, 2019 was 7.0% . The weighted average remaining lease term as of June 29, 2019 was 5.5 years . For the three and six months ended June 29, 2019 , total rent expense of the Company was $1.3 million and $2.5 million , respectively. For the three and six months ended June 30, 2018 , total rent expense of the Company was $0.7 million and $1.5 million , respectively. Cash paid within operating cash flows for operating leases was $1.2 million and $2.0 million for three and six months ended June 29, 2019 , respectively. Purchase Commitments The Company’s contract manufacturers (“CMs”) and original design manufacturers (“ODMs”) place orders for certain component inventory in advance based upon the Company’s build forecasts in order to reduce manufacturing lead times and ensure adequate component supply. The components are used by the CMs and ODMs to build the products included in the build forecasts. The Company generally does not take ownership of the components held by CMs and ODMs. The Company places purchase orders with its CMs and ODMs in order to fulfill its monthly finished product inventory requirements. The Company incurs a liability when the CMs and ODMs convert the component inventory to a finished product and takes ownership of the inventory when transferred to the designated shipping warehouse. In the event of termination of services with a manufacturing partner, the Company has purchased, and may be required to purchase in the future, certain of the remaining components inventory held by the CM or ODM as well as any outstanding orders pursuant to the contractual provisions with such CM or ODM. As of June 29, 2019 , the Company had approximately $51.7 million of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs, within one year. The Company has from time to time, and subject to certain conditions, reimbursed its suppliers for component inventory purchases when this inventory has been rendered excess or obsolete, for example due to manufacturing and engineering change orders resulting from design changes, manufacturing discontinuation of parts by its suppliers, or in cases where inventory levels greatly exceed projected demand. The estimated excess and obsolete inventory liabilities related to such manufacturing and engineering change orders and other factors, which are included in accrued liabilities in the accompanying balance sheets, were $0.7 million and $2.7 million as of June 29, 2019 and December 31, 2018 , respectively. The Company records the related charges in cost of systems revenue in its Condensed Consolidated Statements of Comprehensive Loss. In March 2018, the Company entered into an agreement with a vendor for engineering services pursuant to which the Company will be obligated to make future minimum payments of $15.8 million through 2022. Payments are expected to begin in 2020. Litigation From time to time, the Company is involved in various legal proceedings arising from the normal course of business activities. The Company is not currently a party to any legal proceedings that, if determined adversely to the Company, in management’s opinion, are currently expected to individually or in the aggregate have a material adverse effect on the Company’s business, operating results or financial condition taken as a whole. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 29, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2019 Equity Incentive Award Plan At the annual meeting of stockholders of the Company in May 2019, the stockholders approved the 2019 Equity Incentive Award Plan (the “2019 Plan”). The 2019 Plan supersedes and replaces the 2010 Equity Incentive Award Plan (the “2010 Plan”) and preceding plans. No further awards will be granted under the 2010 Plan; however, the terms and conditions of the 2010 Plan will continue to govern any outstanding awards granted under the 2010 Plan. Employees and consultants of the Company, its subsidiaries and affiliates, as well as members of the Company's Board of Directors, are eligible to receive awards under the 2019 Plan. The 2019 Plan provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), other stock or cash-based awards and dividend equivalents to eligible individuals. The number of shares available for issuance under the 2019 Plan includes an initial reserve of 1.7 million shares of common stock, any shares of common stock that are available for issuance under the 2010 Plan as of the effective date of the 2019 Plan and any shares of common stock subject to issued and outstanding awards under the 2010 Plan that expire, are cancelled or otherwise terminate following the effective date of the 2019 Plan. As of June 29, 2019 , there were 2.6 million shares available for issuance under the 2019 Plan. Stock Options During the six months ended June 29, 2019 , performance-based stock option awards exercisable for up to an aggregate of 2.0 million shares of common stock were granted to Company executives with a grant date fair value of $8.03 per share. These performance-based stock option awards contain a one -year performance period and a subsequent three -year service period. The actual number of shares earned is contingent upon achievement of both annual and quarterly corporate financial targets for revenue, non-GAAP gross margin and non-GAAP net income per share for 2019 (collectively, the “2019 Performance Targets”). These performance-based stock option awards would vest, subject to certification by the Compensation Committee of the Company’s Board of Directors, of the achievement of the 2019 Performance Targets, as to 25% of the shares of common stock earned on the date of such certification, and as to the remaining 75% of the shares of common stock earned, in substantially equal quarterly installments over the subsequent 36 months , subject to the executive’s continuous service with the Company through the respective vesting dates. No shares are awarded unless all of the 2019 Performance Targets are met. If all of the 2019 Performance targets are met, each executive receives 100% of their target shares. Furthermore, each executive may receive a number of shares above their target shares for achievement of at least 125% above the non-GAAP net income per share target, up to a maximum of 200% of the target shares for achievement above 125% of the net income per share target. The probability of meeting the performance conditions related to these performance-based stock option awards was assessed to be unlikely as of June 29, 2019 , and therefore no stock-based compensation expense was recognized for the three and six months ended June 29, 2019 . During the three months ended June 29, 2019 , seven thousand shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $5.42 per share. During the six months ended June 29, 2019 , 0.1 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $5.90 per share. As of June 29, 2019 , unrecognized stock-based compensation expense of $3.4 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.7 years. Restricted Stock Units During the three and six months ended June 29, 2019 , RSUs of 0.2 million were granted with a grant date fair value of $6.62 per share. During the three months ended June 29, 2019 , RSUs of 0.4 million vested. During the six months ended June 29, 2019 , RSUs of 0.5 million vested. As of June 29, 2019 , unrecognized stock-based compensation expense of $2.6 million related to RSUs, net of estimated forfeitures, was expected to be recognized over a weighted-average period of 1.1 years. Performance Restricted Stock Units (“PRSUs”) During the six months ended June 29, 2019 , no PRSUs were granted. During the six months ended June 29, 2019 , PRSUs of 0.1 million vested. As of June 29, 2019 , all PRSUs have been fully vested and expensed. Employee Stock Purchase Plans The Company maintains two employee stock purchase plans - the Amended and Restated Employee Stock Purchase Plan (the “ESPP”) and the Amended and Restated 2017 Nonqualified Employee Stock Purchase Plan (the “Nonqualified ESPP”). The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% of their annual compensation subject to certain Internal Revenue Code limitations. In addition, no participant may purchase more than 2,000 shares of common stock in each offering period. The offering periods under the ESPP are six -month periods commencing on May 15 and November 15 of each year. The price of common stock purchased under the ESPP is 85% of the lower of the fair market value of the common stock on the commencement date and the end date of each six -month offering period. At the annual meeting of stockholders of the Company in May 2019, the stockholders approved an increase in the number of shares of common stock issuable under the ESPP by 2.5 million shares. The increase in shares for the ESPP will go into effect for the purchase period commencing November 15, 2019, and the total shares authorized for issuance under the ESPP increases from 7.3 million shares to 9.8 million shares. As of June 29, 2019 , there were 1.1 million shares available for issuance under the ESPP. During the three and six months ended June 29, 2019 , 0.5 million shares were purchased under the ESPP. As of June 29, 2019 , unrecognized stock-based compensation expense of $0.6 million related to the ESPP is expected to be recognized over a remaining service period of 0.4 years. The Nonqualified ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25% of their annual compensation. Eligible employees have the right to (a) purchase the maximum number of whole shares of common stock that can be purchased with the elected payroll deductions during each offering period for which the employee is enrolled at a purchase price equal to the closing price of the Company’s common stock on the last day of such offering period and (b) receive an equal number of shares of the Company’s common stock that are subject to a risk of forfeiture in the event the employee terminates employment within the one year period immediately following the purchase date. The Nonqualified ESPP provides two six -month offering periods, currently from December 21 through June 20 and June 21 through December 20 of each year. At the annual meeting of stockholders of the Company on May 16, 2018, the stockholders approved an amendment of certain terms and an increase in the number of shares of common stock issuable under the Nonqualified ESPP by 2.5 million shares. The maximum number of shares of common stock currently authorized for issuance under the Nonqualified ESPP is 3.5 million shares, with a maximum of 0.5 million shares allocated per purchase period. During the three and six months ended June 29, 2019 , 0.5 million shares were purchased and issued. As of June 29, 2019 , there were 2.0 million shares available for issuance under the Nonqualified ESPP. As of June 29, 2019 , unrecognized stock-based compensation expense of $3.1 million related to the Nonqualified ESPP is expected to be recognized over a remaining weighted-average service period of 1.2 years. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: • Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions. • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 United States $ 85,837 $ 92,691 $ 161,622 $ 182,080 Middle East 5,949 7,993 9,700 11,143 Canada 3,317 2,254 6,732 4,540 Europe 2,471 3,744 4,910 4,971 Caribbean 501 1,537 2,767 2,674 Other 2,229 3,483 3,923 5,697 $ 100,304 $ 111,702 $ 189,654 $ 211,105 Contract Asset The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, less any progress billings and advanced payments, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance at December 31, 2018 was $5.9 million of which $2.4 million remained in the Company's Condensed Consolidated Balance Sheet at June 29, 2019 . The closing balance at June 29, 2019 was $5.3 million of which the Company expects to bill 58% of the balance during the remainder of 2019. The decrease in the contract asset was driven by the timing of professional services contracts with a major customer. Contract Liability Deferred revenue consisted of the following (in thousands): June 29, December 31, Current: Products and services $ 14,470 $ 11,600 Extended warranty 4,058 4,000 18,528 15,600 Long-term: Products and services 634 440 Extended warranty 17,158 17,056 17,792 17,496 $ 36,320 $ 33,096 The increase in the deferred revenue balance for the three and six months ended June 29, 2019 is primarily driven by cash payments received or due in advance of satisfying the Company's performance obligations, offset by $6.7 million and $10.2 million of revenue recognized that was included in the deferred revenue balance at the beginning of each period, respectively. Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized for contracts greater than one year, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $52.5 million as of June 29, 2019 , and the Company expects to recognize 32% of such revenue over the next 12 months and the remainder thereafter. Contract Costs The Company capitalizes certain sales commissions related primarily to support, software maintenance, extended warranty and Calix Cloud products for which the expected amortization period is greater than one year. As of June 29, 2019 , the unamortized balance of deferred commissions was $0.7 million . For the three and six months ended June 29, 2019 , the amount of amortization was less than $0.1 million , and there was no impairment loss in relation to the costs capitalized. Concentration of Customer Risk The Company had one customer that accounted for more than 10% of its total revenue for the three and six months ended June 29, 2019 and June 30, 2018 . The one customer represented 17% and 15% of the Company’s total revenue for the three and six months ended June 29, 2019 , respectively. The one customer also represented 21% and 17% of the Company’s total revenue for the three and six months ended June 30, 2018, respectively. That one customer also represented more than 10% of the Company’s accounts receivable as of June 29, 2019 and June 30, 2018 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the provision for income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Provision for income taxes $ 95 $ 158 $ 250 $ 268 Effective tax rate (1.9 )% (6.0 )% (1.7 )% (1.9 )% The effective tax rate for the three and six months ended June 29, 2019 was determined using an estimated annual effective tax rate adjusted for discrete items, if any, that occurred during the respective periods. Deferred tax assets are recognized if realization of such assets is more likely than not. The Company has established and continues to maintain a full valuation allowance against its net deferred tax assets, with the exception of certain foreign deferred tax assets, as the Company does not believe that realization of those assets is more likely than not . The Company’s effective tax rate may be subject to fluctuation during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of forecasted pre-tax earnings in the various jurisdictions in which it operates, valuation allowances against deferred tax assets, the recognition or de-recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where it conducts business . |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Numerator: Net loss $ (5,045 ) $ (2,793 ) $ (14,812 ) $ (14,529 ) Denominator: Weighted-average common shares outstanding used to compute basic and diluted net loss per share 54,624 52,290 54,339 51,952 Basic and diluted net loss per common share $ (0.09 ) $ (0.05 ) $ (0.27 ) $ (0.28 ) Potentially dilutive shares, weighted average 7,191 5,751 6,832 6,271 Potentially dilutive shares have been excluded from the computation of diluted net loss per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options, restricted stock units and performance restricted stock units. For each of the periods presented where the Company reported a net loss, the effect of all potentially dilutive securities would be antidilutive, and as a result diluted net loss per common share is the same as basic net loss per common share. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Newly Adopted Accounting Standard Leases In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which requires recognition of an asset and liability for lease arrangements longer than twelve months. The Company adopted the new standard effective January 1, 2019 using the effective date approach which eliminates the need to restate amounts presented prior to that date. The Company also elected the package of practical expedients but not the hindsight practical expedient. The adoption had a material impact on the Company's Condensed Consolidated Balance Sheets but did not impact the Company's Condensed Consolidated Statements of Comprehensive Loss or Cash Flows. Upon adoption on January 1, 2019, the Company recognized an operating lease right-of-use asset of $15.8 million and a lease liability of $16.7 million . Recent Accounting Pronouncements Not Yet Adopted There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 29, 2019 , as compared to the recent accounting pronouncements described in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, that are of significance or potential significance to the Company. |
Revenue Recognition | The Company derives revenue from contracts with customers primarily from the following and categorizes its revenue as follows: • Systems include revenue from the sale of access and premises systems, software platform licenses and cloud-based software subscriptions. • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of cash and cash equivalents | Cash, cash equivalents and restricted cash consisted of the following (in thousands): June 29, December 31, Cash and cash equivalents: Cash $ 34,928 $ 45,806 Money market funds 14 3,840 Total cash and cash equivalents 34,942 49,646 Restricted cash 628 628 $ 35,570 $ 50,274 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): June 29, December 31, Accounts receivable $ 60,583 $ 67,396 Allowance for doubtful accounts (397 ) (370 ) $ 60,186 $ 67,026 |
Summary of inventory | Inventory consisted of the following (in thousands): June 29, December 31, Raw materials $ 6,207 $ 10,815 Finished goods 39,153 39,336 $ 45,360 $ 50,151 |
Summary of property and equipment, net | Property and equipment, net consisted of the following (in thousands): June 29, December 31, Test equipment $ 37,683 $ 39,148 Computer equipment and software 38,185 34,697 Furniture and fixtures 2,331 1,976 Leasehold improvements 1,758 3,559 Total 79,957 79,380 Accumulated depreciation and amortization (50,852 ) (54,435 ) $ 29,105 $ 24,945 |
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): June 29, December 31, Compensation and related benefits $ 14,076 $ 19,811 Warranty and retrofit 7,910 8,547 Customer rebates/prepayments 4,906 6,103 Accrued professional and consulting fees 5,910 6,060 Operating leases 2,381 — Current portion of equipment financing arrangements 1,720 1,778 Non-income related taxes 1,503 1,288 Freight 1,021 1,187 Insurance 776 917 Excess and obsolete inventory at suppliers 654 2,667 Product return reserve 885 880 Accrued other 5,915 8,631 $ 47,657 $ 57,869 |
Product warranty activities | Changes in the Company’s warranty and retrofit accrual are as follows (in thousands): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Balance at beginning of period $ 8,166 $ 8,097 $ 8,547 $ 8,708 Provision for warranty and retrofit charged to cost of revenue 860 1,560 1,567 3,029 Utilization of reserve (1,116 ) (1,469 ) (2,204 ) (3,549 ) Balance at end of period $ 7,910 $ 8,188 $ 7,910 $ 8,188 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future minimum payments under the non-cancelable operating leases consisted of the following as of June 29, 2019 (in thousands): Period Minimum Future Lease Payments Remainder of 2019 $ 1,687 2020 3,661 2021 3,447 2022 3,298 2023 3,362 Thereafter 6,100 Total future minimum lease payments 21,555 Less imputed interest (4,129 ) $ 17,426 |
Lessee, operating leases | Operating lease liability consisted of the following (in thousands): June 29, Accrued liabilities - current portion of operating leases $ 2,381 Operating leases 15,045 $ 17,426 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 United States $ 85,837 $ 92,691 $ 161,622 $ 182,080 Middle East 5,949 7,993 9,700 11,143 Canada 3,317 2,254 6,732 4,540 Europe 2,471 3,744 4,910 4,971 Caribbean 501 1,537 2,767 2,674 Other 2,229 3,483 3,923 5,697 $ 100,304 $ 111,702 $ 189,654 $ 211,105 |
Deferred Revenue, by Arrangement, Disclosure | Deferred revenue consisted of the following (in thousands): June 29, December 31, Current: Products and services $ 14,470 $ 11,600 Extended warranty 4,058 4,000 18,528 15,600 Long-term: Products and services 634 440 Extended warranty 17,158 17,056 17,792 17,496 $ 36,320 $ 33,096 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes | The following table presents the provision for income taxes from continuing operations and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Provision for income taxes $ 95 $ 158 $ 250 $ 268 Effective tax rate (1.9 )% (6.0 )% (1.7 )% (1.9 )% |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) per share | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated (in thousands, except per share data): Three Months Ended Six Months Ended June 29, June 30, June 29, June 30, Numerator: Net loss $ (5,045 ) $ (2,793 ) $ (14,812 ) $ (14,529 ) Denominator: Weighted-average common shares outstanding used to compute basic and diluted net loss per share 54,624 52,290 54,339 51,952 Basic and diluted net loss per common share $ (0.09 ) $ (0.05 ) $ (0.27 ) $ (0.28 ) Potentially dilutive shares, weighted average 7,191 5,751 6,832 6,271 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 16,422 | $ 0 | |
Operating lease liability | $ 17,426 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 15,800 | ||
Operating lease liability | $ 16,700 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 34,942 | $ 49,646 | ||
Restricted cash | 628 | 628 | ||
Total cash | 35,570 | 50,274 | $ 48,175 | $ 39,775 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | 34,928 | 45,806 | ||
Money market funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | $ 14 | $ 3,840 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Summary of accounts receivable, net | ||
Accounts receivable | $ 60,583 | $ 67,396 |
Allowance for doubtful accounts | (397) | (370) |
Accounts receivable, net | $ 60,186 | $ 67,026 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Summary of inventory, net | ||
Raw materials | $ 6,207 | $ 10,815 |
Finished goods | 39,153 | 39,336 |
Total inventory | $ 45,360 | $ 50,151 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Summary of property and equipment, net | ||
Property and equipment, gross | $ 79,957 | $ 79,380 |
Accumulated depreciation and amortization | (50,852) | (54,435) |
Property and equipment, net | 29,105 | 24,945 |
Test equipment | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 37,683 | 39,148 |
Computer equipment and software | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 38,185 | 34,697 |
Furniture and fixtures | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 2,331 | 1,976 |
Leasehold improvements | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $ 1,758 | $ 3,559 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Summary of accrued liabilities | ||
Compensation and related benefits | $ 14,076 | $ 19,811 |
Warranty and retrofit | 7,910 | 8,547 |
Customer rebates/prepayments | 4,906 | 6,103 |
Accrued professional and consulting fees | 5,910 | 6,060 |
Operating leases | 2,381 | 0 |
Current portion of equipment financing arrangements | 1,720 | 1,778 |
Non-income related taxes | 1,503 | 1,288 |
Freight | 1,021 | 1,187 |
Insurance | 776 | 917 |
Excess and obsolete inventory at suppliers | 654 | 2,667 |
Product return reserve | 885 | 880 |
Accrued other | 5,915 | 8,631 |
Total accrued liabilities | $ 47,657 | $ 57,869 |
Balance Sheet Details - Warrant
Balance Sheet Details - Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Other Commitments [Line Items] | ||||
Warranty period | 3 years | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 8,166 | $ 8,097 | $ 8,547 | $ 8,708 |
Provision for warranty and retrofit charged to cost of revenue | 860 | 1,560 | 1,567 | 3,029 |
Utilization of reserve | (1,116) | (1,469) | (2,204) | (3,549) |
Balance at end of period | $ 7,910 | $ 8,188 | $ 7,910 | $ 8,188 |
Minimum | ||||
Other Commitments [Line Items] | ||||
Warranty period | 1 year | |||
Maximum | ||||
Other Commitments [Line Items] | ||||
Warranty period | 5 years |
Credit Agreements (Details)
Credit Agreements (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 29, 2019 | Jun. 30, 2018 | Aug. 07, 2017 | |
Debt Instrument [Line Items] | ||||||
Line of credit | $ 30,000,000 | $ 25,000,000 | ||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Debt instrument, term | 5 months | |||||
Face amount | $ 5,000,000 | |||||
Silicon Valley Bank | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 30,000,000 | |||||
Interest rate | 7.00% | 6.50% | ||||
Research And Development Equipment | ||||||
Debt Instrument [Line Items] | ||||||
Purchase obligation | $ 5,100,000 | |||||
Purchase obligation, term | 36 months | |||||
Weighted average interest rate | 6.20% | |||||
Amount outstanding | $ 3,800,000 | |||||
Consulting Services | ||||||
Debt Instrument [Line Items] | ||||||
Purchase obligation | $ 4,200,000 | |||||
Purchase obligation, term | 2 years 6 months | |||||
Weighted average interest rate | 6.90% | |||||
Amount outstanding | $ 1,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) | Jul. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Aug. 31, 2018USD ($)ft² | |
Commitments and Contingencies [Line Items] | |||||||
Right-of-use operating leases | $ 16,422 | $ 16,422 | $ 0 | ||||
Operating lease liability | 17,426 | 17,426 | |||||
Rent expense | 1,300 | $ 700 | 2,500 | $ 1,500 | |||
Operating lease, payments | 1,200 | 2,000 | |||||
Outstanding purchase commitments | 51,700 | 51,700 | |||||
Accrued customer rebates/prepayments | 654 | 654 | $ 2,667 | ||||
San Jose, California | |||||||
Commitments and Contingencies [Line Items] | |||||||
Future minimum payments due | 15,100 | 15,100 | |||||
Petaluma, CA | |||||||
Commitments and Contingencies [Line Items] | |||||||
Future minimum payments due | $ 2,700 | ||||||
Area of office | ft² | 22 | ||||||
Term of contract | 64 months | ||||||
Right-of-use operating leases | 2,200 | 2,200 | |||||
Operating lease liability | 2,200 | 2,200 | |||||
Engineering Services | |||||||
Commitments and Contingencies [Line Items] | |||||||
Other commitment | $ 15,800 | $ 15,800 | |||||
Subsequent Event | Plymouth, MN | |||||||
Commitments and Contingencies [Line Items] | |||||||
Future minimum payments due | $ 800 | ||||||
Area of office | ft² | 9 | ||||||
Term of contract | 64 months |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Jun. 29, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2019 | $ 1,687 |
2020 | 3,661 |
2021 | 3,447 |
2022 | 3,298 |
2023 | 3,362 |
Thereafter | 6,100 |
Total future minimum lease payments | 21,555 |
Less imputed interest | (4,129) |
Operating lease liability | $ 17,426 |
Weighted average operating discount rate used to determine the operating lease liability (percent) | 7.00% |
Weighted average remaining lease term for operating lease | 5 years 5 months 18 days |
Commitments and Contingencies_3
Commitments and Contingencies - Operating Lease Liability (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities - current portion of operating leases | $ 2,381 | $ 0 |
Operating leases | 15,045 | $ 0 |
Operating lease liability | $ 17,426 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | May 16, 2018shares | May 17, 2017periodshares | May 31, 2019shares | Jun. 29, 2019USD ($)Plan$ / sharesshares | Jun. 29, 2019USD ($)Plan$ / sharesshares | Nov. 15, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted (in shares) | 2,000,000 | |||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 8.03 | |||||
Stock options exercised (in shares) | 7,000 | 100,000 | ||||
Weighted-average exercise price per share, stock options (in dollars per share) | $ / shares | $ 5.42 | $ 5.90 | ||||
Unrecognized stock-based compensation expense, stock options | $ | $ 3.4 | $ 3.4 | ||||
Weighted-average amortization period | 2 years 8 months 12 days | |||||
Number of employee stock purchase plans | Plan | 2 | 2 | ||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award performance period | 1 year | |||||
Award subsequent performance period | 3 years | |||||
Percent of shares received upon meeting targets | 100.00% | |||||
Net income per share, target achievement performance threshold, percent | 125.00% | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 200,000 | 200,000 | ||||
Grant date fair value (in dollars per share) | $ / shares | $ 6.62 | $ 6.62 | ||||
Weighted-average amortization period | 12 months 24 days | |||||
Awards vested (in shares) | 400,000 | 500,000 | ||||
Unrecognized stock-based compensation expense | $ | $ 2.6 | $ 2.6 | ||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 1,098,065 | 1,098,065 | ||||
Weighted-average amortization period | 4 months 24 days | |||||
Unrecognized stock-based compensation expense | $ | $ 0.6 | $ 0.6 | ||||
ESPP, maximum employee payroll deduction percentage | 15.00% | 15.00% | ||||
ESPP, maximum number of shares per employee (in shares) | 2,000 | |||||
ESPP, discounted purchase price percentage | 85.00% | |||||
Offering period | 6 months | |||||
Number of additional shares authorized (in shares) | 2,500,000 | |||||
Shares purchased under ESPP (in shares) | 500,000 | 500,000 | ||||
Number of shares authorized (in shares) | 7,300,000 | 7,300,000 | ||||
Performance Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted (in shares) | 0 | |||||
Awards vested (in shares) | 100,000 | |||||
2019 Equity Incentive Award Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 1,700,000 | 2,600,000 | 2,600,000 | |||
2017 Nonqualified Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 2,000,000 | 2,000,000 | ||||
Unrecognized stock-based compensation expense, stock options | $ | $ 3.1 | $ 3.1 | ||||
Weighted-average amortization period | 1 year 2 months | |||||
Maximum contribution percent (up to 25%) | 25.00% | |||||
Number of offering periods | period | 2 | |||||
Offering period | 6 months | |||||
Number of additional shares authorized (in shares) | 2,500,000 | |||||
Shares purchased under ESPP (in shares) | 500,000 | 500,000 | ||||
Number of shares authorized (in shares) | 3,500,000 | |||||
Number of shares authorized per purchase period (in shares) | 500,000 | |||||
Period One | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 25.00% | |||||
Period Two | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 75.00% | |||||
Award vesting period | 36 months | |||||
Forecast | Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 9,800,000 | |||||
Maximum | Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percent of shares received upon meeting targets | 200.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Contract Costs (Details) | 3 Months Ended | 6 Months Ended |
Jun. 29, 2019USD ($) | Jun. 29, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Capitalized contract cost, gross | $ 700,000 | $ 700,000 |
Capitalized contract cost, amortization | $ 100,000 | 100,000 |
Capitalized contract cost, impairment | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 100,304 | $ 111,702 | $ 189,654 | $ 211,105 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 85,837 | 92,691 | 161,622 | 182,080 |
Middle East | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 5,949 | 7,993 | 9,700 | 11,143 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,317 | 2,254 | 6,732 | 4,540 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,471 | 3,744 | 4,910 | 4,971 |
Caribbean | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 501 | 1,537 | 2,767 | 2,674 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 2,229 | $ 3,483 | $ 3,923 | $ 5,697 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Asset and Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 29, 2019 | Jun. 29, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer, asset | $ 5,300 | $ 5,300 | $ 5,900 |
Contract with customer, asset, prior period, not recognized | $ 2,400 | $ 2,400 | |
Contract with customer, asset, expected to be billed remainder of year, percent | 58.00% | 58.00% | |
Deferred revenue, current | $ 18,528 | $ 18,528 | 15,600 |
Deferred revenue, current | 17,792 | 17,792 | 17,496 |
Deferred revenue | 36,320 | 36,320 | 33,096 |
Contract with customer, liability, revenue recognized | 6,700 | 10,200 | |
Products and services | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 14,470 | 14,470 | 11,600 |
Deferred revenue, current | 634 | 634 | 440 |
Extended warranty | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 4,058 | 4,058 | 4,000 |
Deferred revenue, current | $ 17,158 | $ 17,158 | $ 17,056 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Millions | Jun. 29, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 52.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 32.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Concentration Risk (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Largest One Customer | Customer Concentration Risk | Sales Revenue, Net | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 17.00% | 21.00% | 15.00% | 17.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 95 | $ 158 | $ 250 | $ 268 |
Effective tax rate | (1.90%) | (6.00%) | (1.70%) | (1.90%) |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net loss | $ (5,045) | $ (2,793) | $ (14,812) | $ (14,529) |
Denominator: | ||||
Weighted-average common shares outstanding used to compute basic and diluted net loss per share (in shares) | 54,624 | 52,290 | 54,339 | 51,952 |
Basic and diluted net loss per common share (in dollars per share) | $ (0.09) | $ (0.05) | $ (0.27) | $ (0.28) |
Potentially dilutive shares, weighted average (in shares) | 7,191 | 5,751 | 6,832 | 6,271 |
Uncategorized Items - calx-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,773,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,773,000 |