Cover
Cover - shares | 3 Months Ended | |
Apr. 03, 2021 | Apr. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34674 | |
Entity Registrant Name | Calix, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 68-0438710 | |
Entity Address, Address Line One | 2777 Orchard Parkway | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | 408 | |
Local Phone Number | 514-3000 | |
Title of 12(b) Security | Common Stock, par value $0.025 per share | |
Trading Symbol | CALX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,853,519 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Entity Central Index Key | 0001406666 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 85,854 | $ 80,807 |
Marketable securities | 64,174 | 52,982 |
Accounts receivable, net | 74,408 | 69,419 |
Inventory | 72,211 | 52,268 |
Prepaid expenses and other current assets | 13,122 | 11,414 |
Total current assets | 309,769 | 266,890 |
Property and equipment, net | 20,103 | 20,381 |
Right-of-use operating leases | 11,015 | 11,741 |
Goodwill | 116,175 | 116,175 |
Other assets | 11,073 | 12,165 |
Total assets | 468,135 | 427,352 |
Current liabilities: | ||
Accounts payable | 29,224 | 13,115 |
Accrued liabilities | 56,031 | 68,736 |
Deferred revenue | 24,127 | 19,189 |
Total current liabilities | 109,382 | 101,040 |
Long-term portion of deferred revenue | 20,329 | 19,904 |
Operating leases | 12,167 | 12,946 |
Other long-term liabilities | 11,542 | 13,137 |
Total liabilities | 153,420 | 147,027 |
Commitments and contingencies (See Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.025 par value; 5,000 shares authorized; no shares issued and outstanding as of April 3, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.025 par value; 100,000 shares authorized; 62,851 shares issued and outstanding as of April 3, 2021, and 62,122 shares issued and outstanding as of December 31, 2020 | 1,572 | 1,553 |
Additional paid-in capital | 961,846 | 948,055 |
Accumulated other comprehensive loss | (226) | (191) |
Accumulated deficit | (648,477) | (669,092) |
Total stockholders’ equity | 314,715 | 280,325 |
Total liabilities and stockholders’ equity | $ 468,135 | $ 427,352 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 03, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 62,851,000 | 62,122,000 |
Common stock, shares outstanding (in shares) | 62,851,000 | 62,122,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Revenue: | ||
Revenue | $ 162,074 | $ 101,682 |
Cost of revenue: | ||
Cost of revenue | 75,832 | 56,058 |
Gross profit | 86,242 | 45,624 |
Operating expenses: | ||
Sales and marketing | 28,051 | 20,624 |
Research and development | 24,364 | 20,671 |
General and administrative | 13,025 | 10,669 |
Total operating expenses | 65,440 | 51,964 |
Income (loss) from operations | 20,802 | (6,340) |
Interest and other income, net: | ||
Interest expense, net | (125) | (290) |
Other income, net | 88 | 15 |
Total interest and other income, net | (37) | (275) |
Income (loss) before provision for income taxes | 20,765 | (6,615) |
Provision for income taxes | 150 | 329 |
Net income (loss) | $ 20,615 | $ (6,944) |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ 0.33 | $ (0.12) |
Diluted (in dollars per share) | $ 0.31 | $ (0.12) |
Weighted-average number of shares used to compute net income (loss) per common share | ||
Basic (in shares) | 62,554 | 56,540 |
Diluted (in shares) | 67,019 | 56,540 |
Other comprehensive income, net of tax: | ||
Other comprehensive loss, net of tax - foreign currency translation adjustments, net | $ (35) | $ (252) |
Comprehensive income (loss) | 20,580 | (7,196) |
Systems | ||
Revenue: | ||
Revenue | 153,302 | 94,509 |
Cost of revenue: | ||
Cost of revenue | 69,663 | 50,708 |
Services | ||
Revenue: | ||
Revenue | 8,772 | 7,173 |
Cost of revenue: | ||
Cost of revenue | $ 6,169 | $ 5,350 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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, 2019 | 56,448 | |||||
Balance at beginning of period at Dec. 31, 2019 | $ 154,028 | $ 1,545 | $ 895,899 | $ (854) | $ (702,576) | $ (39,986) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 2,984 | 2,984 | ||||
Issuance of common stock under equity incentive plans, net of forfeitures (in shares) | 180 | |||||
Issuance of common stock under equity incentive plans, net of forfeitures | 1,099 | $ 4 | 1,095 | |||
Net income (loss) | (6,944) | (6,944) | ||||
Other comprehensive income (loss) | (252) | (252) | ||||
Ending Balance, shares at Mar. 28, 2020 | 56,628 | |||||
Balance at end of period at Mar. 28, 2020 | $ 150,915 | $ 1,549 | 899,978 | (1,106) | (709,520) | (39,986) |
Beginning Balance, shares at Dec. 31, 2020 | 62,122 | 62,122 | ||||
Balance at beginning of period at Dec. 31, 2020 | $ 280,325 | $ 1,553 | 948,055 | (191) | (669,092) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 5,171 | 5,171 | ||||
Issuance of common stock under equity incentive plans, net of forfeitures (in shares) | 729 | |||||
Issuance of common stock under equity incentive plans, net of forfeitures | 8,639 | $ 19 | 8,620 | |||
Net income (loss) | 20,615 | 20,615 | ||||
Other comprehensive income (loss) | $ (35) | (35) | ||||
Ending Balance, shares at Apr. 03, 2021 | 62,851 | 62,851 | ||||
Balance at end of period at Apr. 03, 2021 | $ 314,715 | $ 1,572 | $ 961,846 | $ (226) | $ (648,477) | $ 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Operating activities: | ||
Net income (loss) | $ 20,615 | $ (6,944) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Stock-based compensation | 5,171 | 2,984 |
Depreciation and amortization | 4,077 | 3,544 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,989) | (20,627) |
Inventory | (19,943) | 9,614 |
Prepaid expenses and other assets | (1,321) | 758 |
Accounts payable | 16,156 | 9,472 |
Accrued liabilities | (12,856) | 1,367 |
Deferred revenue | 5,362 | 2,071 |
Other long-term liabilities | (2,374) | (990) |
Net cash provided by operating activities | 9,898 | 1,249 |
Investing activities | ||
Purchases of property and equipment | (2,274) | (1,729) |
Purchases of marketable securities | (54,192) | 0 |
Maturities of marketable securities | 43,000 | 0 |
Net cash used in investing activities | (13,466) | (1,729) |
Financing activities: | ||
Proceeds from common stock issuances related to employee benefit plans | 8,639 | 1,099 |
Payments related to financing arrangements | 0 | (842) |
Proceeds from line of credit | 0 | 30,000 |
Repayment of line of credit | 0 | (30,000) |
Payments to originate the line of credit | 0 | (177) |
Net cash provided by financing activities | 8,639 | 80 |
Effect of exchange rate changes on cash and cash equivalents | (24) | (240) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,047 | (640) |
Cash, cash equivalents and restricted cash at beginning of period | 80,807 | 47,457 |
Cash, cash equivalents and restricted cash at end of period | $ 85,854 | $ 46,817 |
Company and Basis of Presentati
Company and Basis of Presentation | 3 Months Ended |
Apr. 03, 2021 | |
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 the leading global provider of cloud and software platforms, systems and services that focus on the access network, the portion of the network that governs available bandwidth and determines the range and quality of services that can be offered to subscribers. These cloud and software platforms enable communications service providers (“CSPs”) of all types and sizes to innovate and transform their businesses. The Company’s CSP customers are empowered to utilize real-time data and insights from Calix platforms to simplify their businesses and deliver experiences that excite their subscribers. These insights enable CSPs to grow their businesses through increased subscriber acquisition, loyalty and revenue, thereby increasing the value of their businesses and contributions to their communities. 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, 2020 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, 2020. 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 quarter ending on the Saturday closest to March 31 st . As a result, the Company had five more days in the three months ended April 3, 2021 than for the three months ended March 28, 2020. 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. Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s business is highly uncertain and difficult to predict as coronavirus continues to spread around the world. Although the availability of vaccines has increased, there are no assurances as to when the pandemic will be fully contained. Since March 2020, the Company has instituted office closures, travel restrictions and a mandatory work-from-home policy for substantially all of its employees. The spread of COVID-19 has had a prolonged impact on the Company’s supply chain operations due to restrictions, reduced capacity and limited availability from suppliers whom the Company relies on for sourcing components and materials and from third-party partners whom the Company relies on for manufacturing, warehousing and logistics services. Although demand for the Company’s products has been strong in the short-term as subscribers seek more bandwidth and better Wi-Fi, customers’ purchasing decisions over the long-term may be impacted by the pandemic and its impact on the economy, which could in turn impact the Company’s revenue and results of operations. Furthermore, the Company’s supply chain continues to face constraints primarily due to challenges in sourcing components and materials for the Company’s products. The prolonged impact of COVID-19 could exacerbate these constraints or cause further supply chain disruptions. As of the issuance date of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company’s financial condition, liquidity or results of operations is uncertain. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2021 | |
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, 2020. The Company’s significant accounting policies did not change during the three months ended April 3, 2021. Newly Adopted Accounting Standard The Company did not adopt any new accounting standards during the three months ended April 3, 2021 that were significant to the Company. Recent Accounting Pronouncements Not Yet Adopted There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended April 3, 2021 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, that are significant or potentially significant to the Company. |
Cash, Cash Equivalents, and Mar
Cash, Cash Equivalents, and Marketable Securities | 3 Months Ended |
Apr. 03, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents and Marketable Securities The Company has invested its excess cash primarily in money market funds and highly liquid marketable securities such as commercial paper and U.S. government securities. The Company considers all investments with maturities of three months or less when purchased to be cash equivalents. Marketable securities represent highly liquid commercial paper and U.S. government securities with maturities greater than 90 days at date of purchase. Cash equivalents are stated at amounts that approximate fair value based on quoted market prices. Marketable securities are recorded at their fair values. Marketable securities with maturities greater than one year are classified as current because management considers all marketable securities to be available for current operations. The Company’s investments have been classified and accounted for as available-for-sale. Such investments are recorded at fair value and unrealized holding gains and losses are reported as a separate component of accumulated other comprehensive loss in the stockholders’ equity until realized. Realized gains and losses on sales of marketable securities, if any, are determined on the specific identification method and are reclassified from accumulated other comprehensive loss to results of operations as other income (expense), net. Realized and unrealized gains and losses were de minimis for the period ended April 3, 2021. Cash, cash equivalents and marketable securities consisted of the following (in thousands): April 3, December 31, Cash and cash equivalents: Cash $ 21,962 $ 30,745 U.S. government securities — 39,994 Money market funds 33,904 10,068 Commercial paper 29,988 — Total cash and cash equivalents 85,854 80,807 Marketable securities: U.S. government securities 39,998 52,982 Commercial paper 24,176 — Total marketable securities 64,174 52,982 $ 150,028 $ 133,789 The carrying amounts of the Company’s money market funds approximate their fair values due to their nature, duration and short maturities. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsThe Company measures its cash equivalents and marketable securities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The Company utilizes the following three-tier value hierarchy which prioritizes the inputs used in measuring fair value: Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The fair value hierarchy also requires the Company to maximize the use of observable inputs, when available, and to minimize the use of unobservable inputs when determining inputs and determining fair value. The following tables sets forth the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): As of April 3, 2021 Level 1 Level 2 Total Money market funds $ 33,904 $ — $ 33,904 U.S. government securities 39,998 — 39,998 Commercial paper — 54,164 54,164 $ 73,902 $ 54,164 $ 128,066 As of December 31, 2020 Level 1 Money market funds $ 10,068 U.S. government securities 92,976 $ 103,044 |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Apr. 03, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Accounts receivable, net consisted of the following (in thousands): April 3, December 31, Accounts receivable $ 75,594 $ 70,824 Allowance for doubtful accounts (1,186) (1,405) $ 74,408 $ 69,419 Inventory consisted of the following (in thousands): April 3, December 31, Raw materials $ 58 $ 34 Finished goods 72,153 52,234 $ 72,211 $ 52,268 Property and equipment, net consisted of the following (in thousands): April 3, December 31, Test equipment $ 37,633 $ 37,670 Software 15,094 16,093 Computer equipment 9,512 9,062 Furniture and fixtures 2,024 2,069 Leasehold improvements 1,376 1,345 Total 65,639 66,239 Accumulated depreciation and amortization (45,536) (45,858) $ 20,103 $ 20,381 Other long-term assets consisted of the following (in thousands): April 3, December 31, Intangible asset $ 8,859 $ 9,517 Other long-term assets 2,214 2,648 $ 11,073 $ 12,165 Intangible Asset Acquisition In March 2018, the Company entered into an agreement with a vendor to develop certain software product and related enhancements pursuant to which the Company is obligated to make revenue-share payments under the program, subject to aggregate minimum revenue-share payments of $15.8 million over the three years following availability for sale. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales subject to a minimum and a maximum aggregate amount over the three-year sales period. The Company had its first sale in August 2019, and as a result, the Company capitalized an intangible asset with a value of $13.2 million in the third quarter of 2019 and also recognized a liability of $13.2 million (a non-cash investing activity). The net present value of the liability is $14.0 million of which $3.4 million is included in accrued liabilities and $10.6 million in other long-term liabilities in the accompanying Condensed Consolidated Balance Sheet as of April 3, 2021. As of December 31, 2020, the net present value of the liability was $13.9 million of which $2.9 million was included in accrued liabilities and $11.0 million in other long-term liabilities. The intangible asset has an estimated five-year useful life and is being amortized using the greater of the ratio of current gross revenue for the products to the total of current and anticipated future gross revenue for the products or the straight-line method. In December 2020, the agreement was amended to increase the revenue-share rate, limit the total revenue-share payments to $15.8 million and extend the revenue-share period until March 2024. Accrued liabilities consisted of the following (in thousands): April 3, December 31, Compensation and related benefits $ 15,031 $ 23,740 Warranty and retrofit 9,650 9,208 Taxes payable 4,220 3,476 Component inventory held by suppliers 4,213 3,992 Professional and consulting fees 3,713 4,497 Customer advances or rebates 3,704 8,374 Current portion of revenue share obligations 3,409 2,925 Operating leases 3,019 2,994 Product returns 2,244 1,888 Freight 1,892 1,955 Restructuring 323 408 Other 4,613 5,279 $ 56,031 $ 68,736 Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands): Three Months Ended April 3, March 28, Balance at beginning of period $ 9,208 $ 7,294 Provision for warranty and retrofit charged to cost of revenue 1,202 1,349 Utilization of reserve (760) (1,213) Balance at end of period $ 9,650 $ 7,430 Accrued Restructuring Charges Responding to trends caused by the COVID-19 pandemic, the Company initiated a restructuring plan in June 2020 to accelerate the Company’s all platform future and to align with a work-from-anywhere culture. The Company incurred restructuring charges of approximately $6.3 million, consisting of facilities-related charges and severance and other termination-related benefits during 2020. As part of the Company’s shift to a work-from-anywhere culture, many of the Company’s employees elected to work remotely on a permanent basis. In light of this change, the Company evaluated its space needs and determined that a portion of the Company's leased office spaces in Richardson, Texas and San Jose, California would no longer be utilized. As a result, the right-of-use assets related to these leases were written down, resulting in a charge of $3.5 million during 2020. In addition, the Company wrote off assets with net book value of $0.3 million and accrued common areas maintenance fees and property taxes related to the unused office space totaling $1.4 million during 2020. The following table summarizes restructuring activities (in thousands): Facilities Severance and Related Benefits Total Balance as of December 31, 2020 $ 1,244 $ 132 $ 1,376 Cash payments (62) (84) (146) Balance as of April 3, 2021 $ 1,182 $ 48 $ 1,230 |
Credit Agreements
Credit Agreements | 3 Months Ended |
Apr. 03, 2021 | |
Line of Credit Facility [Abstract] | |
Credit Agreements | Credit Agreements Line of Credit The Company has a loan and security agreement with Bank of America, N.A. (“BofA Loan Agreement”). The BofA Loan Agreement provides for a revolving facility up to a principal amount of $35.0 million, including a $10.0 million sublimit for letters of credit. The BofA Loan Agreement matures, and all outstanding amounts become due and payable, in January 2023. The BofA Loan Agreement is secured by substantially all of the Company’s assets, including its intellectual property. Loans under the credit facility bear interest at a rate per annum equal to either LIBOR (customarily defined) plus an applicable margin between 1.5% to 2.0% or Prime Rate (customarily defined) plus an applicable margin between 0.5% to 1.0% (3.75% as of April 3, 2021), in each case largely based on a fixed charge coverage ratio measured at the end of each fiscal quarter. As of April 3, 2021, the Company had no outstanding borrowings and had full availability of borrowings up to $35.0 million. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2021 | |
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 April 3, 2021 (in thousands): Period Future Minimum Lease Payments Remainder of 2021 $ 2,903 2022 3,809 2023 3,915 2024 3,725 2025 3,218 Thereafter 42 Total future minimum lease payments 17,612 Less imputed interest (2,426) $ 15,186 As of April 3, 2021, the operating lease liability consisted of the following (in thousands): Accrued liabilities - current portion of operating leases $ 3,019 Operating leases 12,167 $ 15,186 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 $11.3 million and are included in the table above. The weighted average discount rate for the Company's operating leases as of April 3, 2021 was 6.7%. The weighted average remaining lease term as of April 3, 2021 was 4.0 years. Total rent expense of the Company was $1.1 million for the three months ended April 3, 2021 and March 28, 2020 for each respective period. Cash paid within operating cash flows for operating leases was $1.0 million for the three months ended April 3, 2021 and March 28, 2020 for each respective period. Purchase Commitments The Company’s suppliers, including 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 finished goods inventory. 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 April 3, 2021, the Company had approximately $107.8 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 certain 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 products by its suppliers, or in cases where the Company has committed inventory levels that 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 $4.2 million and $4.0 million as of April 3, 2021 and December 31, 2020, respectively. The Company records the related charges in cost of systems revenue in its Condensed Consolidated Statements of Comprehensive Income (Loss). 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 | 3 Months Ended |
Apr. 03, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 2019 Equity Incentive Award 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 Equity Incentive Award Plan (“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, other stock or cash-based awards and dividend equivalents to eligible individuals. As of April 3, 2021, there were 3.6 million shares available for issuance under the 2019 Plan. Stock Options During the three months ended April 3, 2021, stock option awards exercisable for up to an aggregate of 0.1 million shares of common stock were granted with a grant date exercise price of $33.20 per share. These stock option awards vest 25% on the first anniversary of the vesting commencement date and on a quarterly basis thereafter over an additional three years. In February 2021, performance-based stock option awards exercisable for up to an aggregate of 0.7 million shares of common stock were granted to certain Company executives with a grant date exercise price of $36.74 per share. The actual number of shares earned is contingent upon achievement of annual corporate financial targets for bookings and non-GAAP net income for 2021 (collectively, the “2021 Performance Targets”) during the one-year performance period. These performance-based stock option awards will vest, subject to certification by the Compensation Committee of the Company’s Board of Directors upon the achievement of the 2021 Performance Targets, as to 25% of the shares of common stock earned on the one year anniversary of the date of grant, 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. If the non-GAAP net income target is achieved below 80% of target or the bookings target is achieved below 90% of target, no shares would be awarded, and the performance-based stock option awards would be forfeited in full. If both targets are achieved at the minimum threshold of 80% of target for non-GAAP net income and 90% of target for bookings, then the shares are awarded at 50% of the granted shares, with an increasing percentage of shares awarded above the minimum thresholds up to 100% of the granted shares if both targets are achieved at 100% or more of target. The probability of meeting the performance conditions related to these performance-based stock option awards was assessed to be probable as of April 3, 2021, and stock-based compensation expense of $1.0 million was recognized for the three months ended April 3, 2021. During the three months ended April 3, 2021, 0.5 million shares of common stock were issued pursuant to the exercise of stock options at a weighted-average exercise price of $9.36 per share. As of April 3, 2021, unrecognized stock-based compensation expense of $26.1 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.5 years. 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 “NQ ESPP”). The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% of their eligible 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 two six-month offering periods from August 15 th through February 14 th and February 15 th through August 14 th 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. As of April 3, 2021, there were 2.4 million shares available for issuance under the ESPP. During the three months ended April 3, 2021, 0.2 million shares were purchased under the ESPP. As of April 3, 2021, unrecognized stock-based compensation expense of $0.8 million related to the ESPP is expected to be recognized over a remaining service period of 0.4 years. The NQ ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 25% of their eligible 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 NQ ESPP provides two six-month offering periods from November 15 th through May 14 th and May 15 th through November 14 th of each year. As of April 3, 2021, there were 2.3 million shares available for issuance under the NQ ESPP with a maximum of 0.5 million shares allocated per purchase period. As of April 3, 2021, unrecognized stock-based compensation expense of $4.3 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 1.0 year. Stock-Based Compensation The following table summarizes stock-based compensation expense (in thousands): Three Months Ended April 3, March 28, Cost of revenue: Products $ 162 $ 107 Services 150 115 Sales and marketing 1,447 956 Research and development 1,583 1,010 General and administrative 1,829 796 $ 5,171 $ 2,984 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Apr. 03, 2021 | |
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; and • 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 April 3, 2021 March 28, 2020 United States $ 134,705 $ 88,050 Middle East 7,089 2,301 Canada 6,506 3,563 Caribbean 4,763 2,372 Europe 3,414 4,121 Other 5,597 1,275 $ 162,074 $ 101,682 Contract Asset The primary contract asset is revenue recognized on professional services contracts where the services are transferred to the customer over time, which has yet to be billed, and is classified within accounts receivable. Amounts are billed in accordance with the agreed-upon contractual terms. The balance at December 31, 2020 was $2.3 million of which $1.0 million remained in the Company's Condensed Consolidated Balance Sheet at April 3, 2021. The closing balance at April 3, 2021 was $1.9 million of which the Company expects to bill 73% of the balance during the remainder of 2020. The decrease in the contract asset was driven by billings for past services and a reduction in expected cash collections on ongoing projects partially offset by additional unbilled work performed during the three months ended April 3, 2021. Contract Liability Deferred revenue consisted of the following (in thousands): April 3, December 31, Current: Products and services $ 18,647 $ 14,651 Extended warranty 5,480 4,538 24,127 19,189 Long-term: Products and services 2,801 1,879 Extended warranty 17,528 18,025 20,329 19,904 $ 44,456 $ 39,093 The increase in the deferred revenue balance for the three months ended April 3, 2021 is primarily driven by cash payments received or due in advance of satisfying the Company’s performance obligation offset by $8.3 million of revenue recognized that was included in the deferred revenue balance at the beginning of that period. Revenue allocated to remaining performance obligations represent contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This amount was $75.1 million as of April 3, 2021, and the Company expects to recognize 39% of such revenue over the next 12 months and the remainder thereafter. Contract Costs The Company capitalizes certain sales commissions related primarily to multi-year subscriptions and extended warranty support for which the expected amortization period is greater than one year. As of April 3, 2021, the unamortized balance of deferred commissions was $1.4 million. For the three months ended April 3, 2021, the amount of amortization was $0.1 million and there was no impairment loss in relation to the costs capitalized. Concentration of Customer Risk No company accounted for more than 10% of the Company's total revenue for the three months ended April 3, 2021. Lumen Technologies, Inc. (formerly CenturyLink, Inc.) represented 15% of total revenue for three months ended March 28, 2020. No other customers accounted for more than 10% of the Company’s total revenue for three months ended March 28, 2020. No customer represented more than 10% of the Company’s accounts receivable for the periods ended April 3, 2021 or December 31, 2020. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the provision for income taxes from operations and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended April 3, March 28, Provision for income taxes $ 150 $ 329 Effective tax rate 0.7 % (5.0) % The effective tax rate for the three months ended April 3, 2021 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. While the Company has reported U.S. pre-tax income in the first quarter of 2021, the Company has not yet been able to establish a sustained level of profitability in the U.S. or other sufficient significant positive evidence to conclude that its U.S. deferred tax assets are more likely than not to be realized. Therefore, the Company continues to maintain a valuation allowance against most of its U.S. deferred tax assets. At some point, if the Company establishes a sustained level of profitability and projects continued profitability, the Company may reverse a significant portion of its valuation allowance recorded against U.S. deferred tax assets, resulting in a non-recurring non-cash income tax benefit. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended April 3, March 28, Numerator: Net income (loss) $ 20,615 $ (6,944) Denominator: Weighted-average common shares outstanding used to compute basic net income (loss) per share 62,554 56,540 Effect of dilutive common stock equivalents 4,465 — Weighted-average common shares outstanding used to compute diluted net income (loss) per share 67,019 56,540 Net income (loss) per common share: Basic net income (loss) per common share $ 0.33 $ (0.12) Diluted net income (loss) per common share $ 0.31 $ (0.12) Potentially dilutive shares, weighted average 415 7,133 Potentially dilutive shares have been excluded from the computation of diluted net income (loss) per common share when their effect is antidilutive. These antidilutive shares were primarily from stock options. 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) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2020 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, 2020. 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 quarter ending on the Saturday closest to March 31 st . As a result, the Company had five more days in the three months ended April 3, 2021 than for the three months ended March 28, 2020. 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. |
Risks and Uncertainties | Risks and Uncertainties The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The extent of the impact of the COVID-19 pandemic on the Company’s business is highly uncertain and difficult to predict as coronavirus continues to spread around the world. Although the availability of vaccines has increased, there are no assurances as to when the pandemic will be fully contained. Since March 2020, the Company has instituted office closures, travel restrictions and a mandatory work-from-home policy for substantially all of its employees. The spread of COVID-19 has had a prolonged impact on the Company’s supply chain operations due to restrictions, reduced capacity and limited availability from suppliers whom the Company relies on for sourcing components and materials and from third-party partners whom the Company relies on for manufacturing, warehousing and logistics services. Although demand for the Company’s products has been strong in the short-term as subscribers seek more bandwidth and better Wi-Fi, customers’ purchasing decisions over the long-term may be impacted by the pandemic and its impact on the economy, which could in turn impact the Company’s revenue and results of operations. Furthermore, the Company’s supply chain continues to face constraints primarily due to challenges in sourcing components and materials for the Company’s products. The prolonged impact of COVID-19 could exacerbate these constraints or cause further supply chain disruptions. As of the issuance date of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company’s financial condition, liquidity or results of operations is uncertain. |
Recent Accounting Pronouncements | Newly Adopted Accounting Standard The Company did not adopt any new accounting standards during the three months ended April 3, 2021 that were significant to the Company. Recent Accounting Pronouncements Not Yet Adopted There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended April 3, 2021 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, that are significant or potentially significant 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; and • Services include revenue from professional services, customer support, software- and cloud-based maintenance, extended warranty subscriptions, training and managed services. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Summary of cash and cash equivalents | Cash, cash equivalents and marketable securities consisted of the following (in thousands): April 3, December 31, Cash and cash equivalents: Cash $ 21,962 $ 30,745 U.S. government securities — 39,994 Money market funds 33,904 10,068 Commercial paper 29,988 — Total cash and cash equivalents 85,854 80,807 Marketable securities: U.S. government securities 39,998 52,982 Commercial paper 24,176 — Total marketable securities 64,174 52,982 $ 150,028 $ 133,789 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables sets forth the Company’s financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): As of April 3, 2021 Level 1 Level 2 Total Money market funds $ 33,904 $ — $ 33,904 U.S. government securities 39,998 — 39,998 Commercial paper — 54,164 54,164 $ 73,902 $ 54,164 $ 128,066 As of December 31, 2020 Level 1 Money market funds $ 10,068 U.S. government securities 92,976 $ 103,044 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of accounts receivable, net | Accounts receivable, net consisted of the following (in thousands): April 3, December 31, Accounts receivable $ 75,594 $ 70,824 Allowance for doubtful accounts (1,186) (1,405) $ 74,408 $ 69,419 |
Summary of inventory | Inventory consisted of the following (in thousands): April 3, December 31, Raw materials $ 58 $ 34 Finished goods 72,153 52,234 $ 72,211 $ 52,268 |
Summary of property and equipment, net | Property and equipment, net consisted of the following (in thousands): April 3, December 31, Test equipment $ 37,633 $ 37,670 Software 15,094 16,093 Computer equipment 9,512 9,062 Furniture and fixtures 2,024 2,069 Leasehold improvements 1,376 1,345 Total 65,639 66,239 Accumulated depreciation and amortization (45,536) (45,858) $ 20,103 $ 20,381 |
Schedule of other long-term assets | Other long-term assets consisted of the following (in thousands): April 3, December 31, Intangible asset $ 8,859 $ 9,517 Other long-term assets 2,214 2,648 $ 11,073 $ 12,165 |
Summary of accrued liabilities | Accrued liabilities consisted of the following (in thousands): April 3, December 31, Compensation and related benefits $ 15,031 $ 23,740 Warranty and retrofit 9,650 9,208 Taxes payable 4,220 3,476 Component inventory held by suppliers 4,213 3,992 Professional and consulting fees 3,713 4,497 Customer advances or rebates 3,704 8,374 Current portion of revenue share obligations 3,409 2,925 Operating leases 3,019 2,994 Product returns 2,244 1,888 Freight 1,892 1,955 Restructuring 323 408 Other 4,613 5,279 $ 56,031 $ 68,736 |
Product warranty activities | Three Months Ended April 3, March 28, Balance at beginning of period $ 9,208 $ 7,294 Provision for warranty and retrofit charged to cost of revenue 1,202 1,349 Utilization of reserve (760) (1,213) Balance at end of period $ 9,650 $ 7,430 |
Restructuring and Related Costs | The following table summarizes restructuring activities (in thousands): Facilities Severance and Related Benefits Total Balance as of December 31, 2020 $ 1,244 $ 132 $ 1,376 Cash payments (62) (84) (146) Balance as of April 3, 2021 $ 1,182 $ 48 $ 1,230 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
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 April 3, 2021 (in thousands): Period Future Minimum Lease Payments Remainder of 2021 $ 2,903 2022 3,809 2023 3,915 2024 3,725 2025 3,218 Thereafter 42 Total future minimum lease payments 17,612 Less imputed interest (2,426) $ 15,186 |
Lessee, operating lease liability | As of April 3, 2021, the operating lease liability consisted of the following (in thousands): Accrued liabilities - current portion of operating leases $ 3,019 Operating leases 12,167 $ 15,186 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Stockholders' Equity Note [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes stock-based compensation expense (in thousands): Three Months Ended April 3, March 28, Cost of revenue: Products $ 162 $ 107 Services 150 115 Sales and marketing 1,447 956 Research and development 1,583 1,010 General and administrative 1,829 796 $ 5,171 $ 2,984 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
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 April 3, 2021 March 28, 2020 United States $ 134,705 $ 88,050 Middle East 7,089 2,301 Canada 6,506 3,563 Caribbean 4,763 2,372 Europe 3,414 4,121 Other 5,597 1,275 $ 162,074 $ 101,682 |
Deferred revenue, by arrangement, disclosure | Deferred revenue consisted of the following (in thousands): April 3, December 31, Current: Products and services $ 18,647 $ 14,651 Extended warranty 5,480 4,538 24,127 19,189 Long-term: Products and services 2,801 1,879 Extended warranty 17,528 18,025 20,329 19,904 $ 44,456 $ 39,093 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income taxes | The following table presents the provision for income taxes from operations and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended April 3, March 28, Provision for income taxes $ 150 $ 329 Effective tax rate 0.7 % (5.0) % |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended April 3, March 28, Numerator: Net income (loss) $ 20,615 $ (6,944) Denominator: Weighted-average common shares outstanding used to compute basic net income (loss) per share 62,554 56,540 Effect of dilutive common stock equivalents 4,465 — Weighted-average common shares outstanding used to compute diluted net income (loss) per share 67,019 56,540 Net income (loss) per common share: Basic net income (loss) per common share $ 0.33 $ (0.12) Diluted net income (loss) per common share $ 0.31 $ (0.12) Potentially dilutive shares, weighted average 415 7,133 |
Cash, Cash Equivalents, and M_2
Cash, Cash Equivalents, and Marketable Securities - (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 85,854 | $ 80,807 |
Marketable securities | 64,174 | 52,982 |
Cash, Cash Equivalents, and Marketable Securities | 150,028 | 133,789 |
U.S. government securities | ||
Cash and Cash Equivalents [Line Items] | ||
Marketable securities | 39,998 | 52,982 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Marketable securities | 24,176 | 0 |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 21,962 | 30,745 |
U.S. government securities | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 0 | 39,994 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | 33,904 | 10,068 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Total cash and cash equivalents | $ 29,988 | $ 0 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. government securities | $ 64,174 | $ 52,982 |
U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. government securities | 39,998 | 52,982 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial paper | 54,164 | |
Total assets | 128,066 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial paper | 0 | |
Total assets | 73,902 | 103,044 |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial paper | 54,164 | |
Total assets | 54,164 | |
Fair Value, Recurring | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. government securities | 39,998 | |
Fair Value, Recurring | U.S. government securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. government securities | 39,998 | 92,976 |
Fair Value, Recurring | U.S. government securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. government securities | 0 | |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 33,904 | |
Fair Value, Recurring | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 33,904 | $ 10,068 |
Fair Value, Recurring | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Summary of accounts receivable, net | ||
Accounts receivable | $ 75,594 | $ 70,824 |
Allowance for doubtful accounts | (1,186) | (1,405) |
Accounts receivable, net | $ 74,408 | $ 69,419 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Summary of inventory, net | ||
Raw materials | $ 58 | $ 34 |
Finished goods | 72,153 | 52,234 |
Total inventory | $ 72,211 | $ 52,268 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Summary of property and equipment, net | ||
Property and equipment, gross | $ 65,639 | $ 66,239 |
Accumulated depreciation and amortization | (45,536) | (45,858) |
Property and equipment, net | 20,103 | 20,381 |
Test equipment | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 37,633 | 37,670 |
Software | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 15,094 | 16,093 |
Computer equipment | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 9,512 | 9,062 |
Furniture and fixtures | ||
Summary of property and equipment, net | ||
Property and equipment, gross | 2,024 | 2,069 |
Leasehold improvements | ||
Summary of property and equipment, net | ||
Property and equipment, gross | $ 1,376 | $ 1,345 |
Balance Sheet Details - Loss on
Balance Sheet Details - Loss on Asset Retirement (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 03, 2021 | Dec. 31, 2020 | Sep. 28, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset | $ 8,859 | $ 9,517 | |||
Other long-term assets | 2,214 | 2,648 | |||
Other assets, noncurrent | 11,073 | 12,165 | |||
Accrued liabilities | 56,031 | 68,736 | |||
Other long-term liabilities | 11,542 | 13,137 | |||
Licensed Software | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Royalty payment commitment | 15,800 | $ 15,800 | |||
Royalty payment commitment period | 3 years | ||||
Intangible asset | $ 13,200 | ||||
Other Liabilities | 14,000 | 13,900 | $ 13,200 | ||
Accrued liabilities | 3,400 | 2,900 | |||
Other long-term liabilities | $ 10,600 | $ 11,000 | |||
Useful life | 5 years |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Summary of accrued liabilities | ||
Compensation and related benefits | $ 15,031 | $ 23,740 |
Warranty and retrofit | 9,650 | 9,208 |
Taxes payable | 4,220 | 3,476 |
Component inventory held by suppliers | 4,213 | 3,992 |
Professional and consulting fees | 3,713 | 4,497 |
Customer advances or rebates | 3,704 | 8,374 |
Current portion of revenue share obligations | 3,409 | 2,925 |
Operating leases | 3,019 | 2,994 |
Product returns | 2,244 | 1,888 |
Freight | 1,892 | 1,955 |
Restructuring | 323 | 408 |
Other | 4,613 | 5,279 |
Total accrued liabilities | $ 56,031 | $ 68,736 |
Balance Sheet Details - Warrant
Balance Sheet Details - Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 9,208 | $ 7,294 |
Provision for warranty and retrofit charged to cost of revenue | 1,202 | 1,349 |
Utilization of reserve | (760) | (1,213) |
Balance at end of period | $ 9,650 | $ 7,430 |
Balance Sheet Details - Restruc
Balance Sheet Details - Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 03, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2020 | $ 1,376 | |
Cash payments | (146) | |
Balance as of April 3, 2021 | 1,230 | $ 1,376 |
All Platform Future And Work-From-Anywhere Culture Alignment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 6,300 | |
Asset, write-off | 300 | |
Accrued common areas maintenance fees and property taxes, write-off | 1,400 | |
Facilities | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2020 | 1,244 | |
Cash payments | (62) | |
Balance as of April 3, 2021 | 1,182 | 1,244 |
Facilities | Richardson, Texas and San Jose, California | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,500 | |
Severance and Related Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Balance as of December 31, 2020 | 132 | |
Cash payments | (84) | |
Balance as of April 3, 2021 | $ 48 | $ 132 |
Credit Agreements - Line of Cre
Credit Agreements - Line of Credit (Details) - Bank Of America - USD ($) | Jul. 01, 2020 | Apr. 03, 2021 | Jan. 31, 2020 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, maximum capacity | $ 35,000,000 | ||
Outstanding borrowings | $ 0 | ||
Line of credit, amount available | $ 35,000,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Revolving credit facility, maximum capacity | $ 10,000,000 | ||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Prime Rate | Minimum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Prime Rate | Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies [Line Items] | |||
Total future minimum lease payments | $ 17,612 | ||
Weighted average operating discount rate used to determine the operating lease liability (percent) | 6.70% | ||
Weighted average remaining lease term for operating lease | 4 years | ||
Rent expense | $ 1,100 | $ 1,100 | |
Operating lease, payments | 1,000 | $ 1,000 | |
Outstanding purchase commitments | 107,800 | ||
Accrued customer rebates/prepayments | 4,213 | $ 3,992 | |
San Jose, California | |||
Commitments and Contingencies [Line Items] | |||
Total future minimum lease payments | $ 11,300 |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2021 | $ 2,903 |
2022 | 3,809 |
2023 | 3,915 |
2024 | 3,725 |
2025 | 3,218 |
Thereafter | 42 |
Total future minimum lease payments | 17,612 |
Less imputed interest | (2,426) |
Operating lease liability | $ 15,186 |
Commitments and Contingencies_3
Commitments and Contingencies - Operating Lease Liability (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued liabilities - current portion of operating leases | $ 3,019 | $ 2,994 |
Operating leases | 12,167 | $ 12,946 |
Operating lease liability | $ 15,186 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Stockholders' Equity - 2019 Equ
Stockholders' Equity - 2019 Equity Incentive Award Plan (Details) shares in Millions | Apr. 03, 2021shares |
2019 Equity Incentive Award Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grant (in shares) | 3.6 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Apr. 03, 2021 | Mar. 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 100,000 | ||
Weighted-average grant date fair value (in dollars per share) | $ 33.20 | ||
Stock-based compensation | $ 5,171 | $ 2,984 | |
Stock options exercised (in shares) | 500,000 | ||
Weighted-average exercise price per share, stock options (in dollars per share) | $ 9.36 | ||
Recognition period | 2 years 6 months | ||
2021 Performance Targets | Performance Based Stock Options | Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 700,000 | ||
Weighted-average grant date fair value (in dollars per share) | $ 36.74 | ||
Award performance period | 1 year | ||
Net income per share, target achievement performance threshold, percent | 80.00% | ||
Bookings, target achievement performance threshold, percent | 90.00% | ||
Number of shares granted if no-GAAP income below 80% and bookings below 90% of target (in shares) | 0 | ||
Shares award weighting percent | 50.00% | ||
Target achievement threshold for shares award sliding scale | 100.00% | ||
Stock-based compensation | $ 1,000 | ||
2021 Performance Targets | Performance Based Stock Options | Period One | Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 25.00% | ||
2021 Performance Targets | Performance Based Stock Options | Period Two | Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 75.00% | ||
Award vesting period | 36 months | ||
2021 Performance Targets | Stock Options | Period One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 25.00% | ||
2021 Performance Targets | Stock Options | Period Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plans (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2021USD ($)periodPlanshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of employee stock purchase plans | Plan | 2 |
Recognition period | 2 years 6 months |
Unrecognized stock-based compensation expense, stock options | $ | $ 26.1 |
2017 Nonqualified Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grant (in shares) | 2,300,000 |
Recognition period | 1 year |
Maximum contribution percent (up to 25%) | 25.00% |
Employee termination period following purchase date to receive shares subject to risk of forfeiture | 1 year |
Number of offering periods | period | 2 |
Offering period | 6 months |
Number of shares authorized per purchase period (in shares) | 500,000 |
Unrecognized stock-based compensation expense, stock options | $ | $ 4.3 |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
ESPP, maximum employee payroll deduction percentage | 15.00% |
ESPP, maximum number of shares per employee (in shares) | 2,000 |
Offering period | 6 months |
ESPP, discounted purchase price percentage | 85.00% |
Shares available for future grant (in shares) | 2,400,000 |
Shares purchased under ESPP (in shares) | 200,000 |
Unrecognized stock-based compensation expense | $ | $ 0.8 |
Recognition period | 4 months 24 days |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 5,171 | $ 2,984 |
Products | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 162 | 107 |
Services | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 150 | 115 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,447 | 956 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,583 | 1,010 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 1,829 | $ 796 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 162,074 | $ 101,682 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 134,705 | 88,050 |
Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 7,089 | 2,301 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,506 | 3,563 |
Caribbean | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 4,763 | 2,372 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 3,414 | 4,121 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 5,597 | $ 1,275 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Asset and Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Contract with customer, asset | $ 1,900 | $ 2,300 |
Contract with customer, asset, prior period, not recognized | $ 1,000 | |
Contract with customer, asset, expected to be billed remainder of year, percent | 73.00% | |
Deferred revenue, current | $ 24,127 | 19,189 |
Deferred revenue, current | 20,329 | 19,904 |
Deferred revenue | 44,456 | 39,093 |
Contract with customer, liability, revenue recognized | 8,300 | |
Products and services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 18,647 | 14,651 |
Deferred revenue, current | 2,801 | 1,879 |
Extended warranty | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, current | 5,480 | 4,538 |
Deferred revenue, current | $ 17,528 | $ 18,025 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Costs (Details) | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized contract cost, gross | $ 1,400,000 |
Capitalized contract cost, amortization | 100,000 |
Capitalized contract cost, impairment | $ 0 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Millions | Apr. 03, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 75.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 39.00% |
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 |
Mar. 28, 2020 | |
Lumen Technologies, Inc. | Customer Concentration Risk | Revenue | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 15.00% |
Income Taxes - (Details)
Income Taxes - (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 150 | $ 329 |
Effective tax rate | 0.70% | (5.00%) |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Numerator: | ||
Net income (loss) | $ 20,615 | $ (6,944) |
Denominator: | ||
Weighted-average common shares outstanding used to compute basic net income (loss) per share (in shares) | 62,554 | 56,540 |
Effect of dilutive common stock equivalents (in shares) | 4,465 | 0 |
Weighted-average common shares outstanding used to compute diluted net income (loss) per share (in shares) | 67,019 | 56,540 |
Basic net income (loss) per common share (in dollars per share) | $ 0.33 | $ (0.12) |
Diluted net income (loss) per common share (in dollars per share) | $ 0.31 | $ (0.12) |
Potentially dilutive shares, weighted average (in shares) | 415 | 7,133 |