Calix (CALX) 10-Q 24 Apr 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 01, 2023	Apr. 17, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,244,076
Entity Central Index Key	0001406666
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 94,186	$ 79,073
Marketable securities	162,864	162,642
Accounts receivable, net	92,209	93,804
Inventory	156,513	149,160
Prepaid expenses and other current assets	70,302	62,691
Total current assets	576,074	547,370
Property and equipment, net	27,419	25,834
Right-of-use operating leases	10,060	9,283
Deferred tax assets	167,918	167,031
Goodwill	116,175	116,175
Other assets	17,181	19,142
Total assets	914,827	884,835
Current liabilities:
Accounts payable	35,376	41,407
Accrued liabilities	80,838	90,474
Deferred revenue	44,497	33,541
Total current liabilities	160,711	165,422
Long-term portion of deferred revenue	25,121	25,072
Operating leases	8,825	8,442
Other long-term liabilities	2,331	6,332
Total liabilities	196,988	205,268
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 April 1, 2023 and December 31, 2022	0	0
Common stock, $0.025 par value; 100,000 shares authorized; 66,244 shares issued and outstanding as of April 1, 2023, and 65,735 shares issued and outstanding as of December 31, 2022	1,656	1,644
Additional paid-in capital	1,097,596	1,070,100
Accumulated other comprehensive loss	(1,307)	(2,473)
Accumulated deficit	(380,106)	(389,704)
Total stockholders’ equity	717,839	679,567
Total liabilities and stockholders’ equity	$ 914,827	$ 884,835

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 01, 2023	Dec. 31, 2022
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)	66,244,000	65,735,000
Common stock, shares outstanding (in shares)	66,244,000	65,735,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Statement [Abstract]
Revenue	$ 250,008	$ 184,948
Cost of revenue	121,957	93,156
Gross profit	128,051	91,792
Operating expenses:
Sales and marketing	51,865	36,091
Research and development	43,173	29,817
General and administrative	23,077	16,031
Total operating expenses	118,115	81,939
Operating income	9,936	9,853
Interest income and other expense, net:
Interest income, net	1,640	35
Other expense, net	(167)	(68)
Total interest income and other expense, net	1,473	(33)
Income before income taxes	11,409	9,820
Income taxes	1,811	1,701
Net income	$ 9,598	$ 8,119
Net income per common share:
Basic (in dollars per share)	$ 0.15	$ 0.13
Diluted (in dollars per share)	$ 0.14	$ 0.12
Weighted-average number of shares used to compute net income per common share
Basic (in shares)	66,044	64,489
Diluted (in shares)	69,708	68,405
Other comprehensive income, net of tax:
Unrealized gain (loss) on available-for-sale marketable securities, net	$ 1,064	$ (1,161)
Foreign currency translation adjustments, net	102	(71)
Total other comprehensive income, net of tax	1,166	(1,232)
Comprehensive income	$ 10,764	$ 6,887

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
Beginning Balance (in shares) at Dec. 31, 2021		64,274
Balance at beginning of period at Dec. 31, 2021	$ 568,428	$ 1,607	$ 997,855	$ (320)	$ (430,714)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	10,467		10,467
Issuance of common stock under equity incentive plans, net of forfeitures (in shares)		338
Issuance of common stock under equity incentive plans, net of forfeitures	6,023	$ 9	6,014
Net income	8,119				8,119
Other comprehensive income (loss)	(1,232)			(1,232)
Ending Balance (in shares) at Apr. 02, 2022		64,612
Balance at end of period at Apr. 02, 2022	$ 591,805	$ 1,616	1,014,336	(1,552)	(422,595)
Beginning Balance (in shares) at Dec. 31, 2022	65,735	65,735
Balance at beginning of period at Dec. 31, 2022	$ 679,567	$ 1,644	1,070,100	(2,473)	(389,704)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	16,220		16,220
Issuance of common stock under equity incentive plans, net of forfeitures (in shares)		534
Issuance of common stock under equity incentive plans, net of forfeitures	$ 12,471	$ 13	12,458
Repurchases of common stock (in shares)	(25)	(25)
Repurchases of common stock	$ (1,183)	$ (1)	(1,182)
Net income	9,598				9,598
Other comprehensive income (loss)	$ 1,166			1,166
Ending Balance (in shares) at Apr. 01, 2023	66,244	66,244
Balance at end of period at Apr. 01, 2023	$ 717,839	$ 1,656	$ 1,097,596	$ (1,307)	$ (380,106)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Operating activities:
Net income	$ 9,598	$ 8,119
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	16,220	10,467
Depreciation and amortization	3,723	3,943
Deferred income taxes	(681)	277
Net accretion of available-for-sale securities	(708)	0
Changes in operating assets and liabilities:
Accounts receivable, net	1,595	(2,733)
Inventory	(7,353)	(16,137)
Prepaid expenses and other assets	(7,083)	(6,738)
Accounts payable	(5,899)	8,186
Accrued liabilities	(8,688)	802
Deferred revenue	11,005	3,956
Other long-term liabilities	(3,617)	(2,777)
Net cash provided by operating activities	8,112	7,365
Investing activities
Purchases of property and equipment	(4,618)	(3,231)
Purchases of marketable securities	(54,908)	(73,034)
Maturities of marketable securities	56,248	56,119
Net cash used in investing activities	(3,278)	(20,146)
Financing activities:
Proceeds from common stock issuances related to employee benefit plans	12,471	6,023
Repurchases of common stock	(1,183)	0
Payments related to financing arrangements	(1,066)	(137)
Net cash provided by financing activities	10,222	5,886
Effect of exchange rate changes on cash and cash equivalents	57	(69)
Net increase (decrease) in cash and cash equivalents	15,113	(6,964)
Cash and cash equivalents at beginning of period	79,073	51,333
Cash and cash equivalents at end of period	$ 94,186	$ 44,369

Company and Basis of Presentati

Company and Basis of Presentation	3 Months Ended
	Apr. 01, 2023
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 a platform (cloud, software and systems) and managed services that focus on the subscriber-facing network, the portion of the network that governs available bandwidth and determines the range and quality of services that can be offered to subscribers. This platform and managed services enable broadband service providers (“BSPs”) of all sizes to innovate and transform their businesses. The Company’s BSP customers are empowered to utilize real-time data and insights from the Calix platform to simplify their businesses and deliver experiences that excite their subscribers. These insights enable BSPs 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 as of December 31, 2022 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, 2022. 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 one less day in the three months ended April 1, 2023 than for the three months ended April 2, 2022. 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	3 Months Ended
	Apr. 01, 2023
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, 2022. The Company’s significant accounting policies did not change during the three months ended April 1, 2023. Newly Adopted Accounting Standard The Company did not adopt any new accounting standards during the three months ended April 1, 2023 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 1, 2023 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, that are significant or potentially significant to the Company.

Cash, Cash Equivalents, and Mar

Cash, Cash Equivalents, and Marketable Securities	3 Months Ended
	Apr. 01, 2023
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, corporate debt securities, municipal securities 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 commercial paper, U.S. government agency securities, corporate debt securities, municipal securities 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 expense, net. There were no realized gains and losses for the three months ended April 1, 2023 and April 2, 2022, respectively. Cash, cash equivalents and marketable securities consisted of the following (in thousands): April 1, December 31, Cash and cash equivalents: Cash $ 51,134 $ 39,189 Commercial paper 31,482 33,199 Money market funds 6,249 555 U.S. government agency securities 5,072 — Corporate debt securities 249 140 U.S. government securities — 5,990 Total cash and cash equivalents 94,186 79,073 Marketable securities: U.S. government securities 96,545 106,750 U.S. government agency securities 31,727 23,632 Commercial paper 31,404 28,992 Corporate debt securities 3,188 3,168 Municipal securities — 100 Total marketable securities 162,864 162,642 $ 257,050 $ 241,715 The carrying amounts of the Company’s money market funds approximate their fair values due to their nature, duration and short maturities. The amortized cost and fair value of marketable securities were as follows (in thousands): As of April 1, 2023 Amortized Cost Gross Unrealized Gains/(Losses) Fair Value U.S. government securities $ 97,240 $ (695) $ 96,545 Commercial paper 62,933 (47) 62,886 U.S. government agency securities 36,914 (115) 36,799 Corporate debt securities 3,423 14 3,437 Total marketable securities $ 200,510 $ (843) $ 199,667 As of December 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value U.S. government securities $ 114,119 $ (1,379) $ 112,740 Commercial paper 62,262 (71) 62,191 U.S. government agency securities 23,876 (244) 23,632 Corporate debt securities 3,312 (4) 3,308 Municipal securities 101 (1) 100 Total marketable securities $ 203,670 $ (1,699) $ 201,971

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The 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 1, 2023 Level 1 Level 2 Total Money market funds $ 6,249 $ — $ 6,249 U.S. government securities 96,545 — 96,545 Commercial paper — 62,886 62,886 U.S. government agency securities — 36,799 36,799 Corporate debt securities — 3,437 3,437 $ 102,794 $ 103,122 $ 205,916 As of December 31, 2022 Level 1 Level 2 Total Money market funds $ 555 $ — $ 555 U.S. government securities 112,740 — 112,740 Commercial paper — 62,191 62,191 U.S. government agency securities — 23,632 23,632 Corporate debt securities — 3,308 3,308 Municipal securities — 100 100 $ 113,295 $ 89,231 $ 202,526

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Apr. 01, 2023
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Details	Balance Sheet Details Accounts receivable, net consisted of the following (in thousands): April 1, December 31, Accounts receivable $ 92,481 $ 94,201 Allowance for doubtful accounts (272) (397) $ 92,209 $ 93,804 Inventory consisted of the following (in thousands): April 1, December 31, Raw materials $ 696 $ 640 Finished goods 155,817 148,520 $ 156,513 $ 149,160 Prepaid expenses and other current assets consisted of the following (in thousands): April 1, December 31, Supplier deposits $ 35,422 $ 39,064 Prepaid expenses and other current assets 34,880 23,627 $ 70,302 $ 62,691 Property and equipment, net consisted of the following (in thousands): April 1, December 31, Test equipment $ 46,591 $ 44,106 Computer equipment 14,041 13,396 Software 10,896 10,389 Leasehold improvements 1,733 1,730 Furniture and fixtures 1,178 1,153 Total 74,439 70,774 Accumulated depreciation and amortization (47,020) (44,940) $ 27,419 $ 25,834 Accrued liabilities consisted of the following (in thousands): April 1, December 31, Compensation and related benefits $ 16,821 $ 27,813 Component inventory held by suppliers 11,360 10,280 Revenue share payments 10,490 7,210 Professional and consulting fees 8,889 7,307 Taxes payable 6,451 4,581 Current portion of warranty and retrofit 6,216 6,377 Customer advances or rebates 4,515 5,653 Operating leases 4,131 3,949 Product returns 2,554 2,961 Insurance 2,139 1,785 Freight 1,442 3,649 Business events — 3,167 Other 5,830 5,742 $ 80,838 $ 90,474 Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands): Three Months Ended April 1, April 2, Balance at beginning of period $ 8,386 $ 9,594 Accruals for product warranty and retrofit 1,016 527 Cost of warranty and retrofit claims (957) (551) Balance at end of period $ 8,445 $ 9,570 In March 2018, and as amended in December 2020, the Company entered into an agreement with a vendor to develop a certain software product and related enhancements pursuant to which the Company is obligated to make revenue-share payments under the program, subject to aggregate fixed revenue-share payments of $15.8 million. The payments are based on a revenue-share rate applied to revenue from the developed-product and the corresponding hardware sales through March 2024. If the minimum revenue-share payments are not achieved by the end of that period, a true-up payment will be due. As of April 1, 2023, the liability, including accrued interest, was $10.5 million, which is included in “Accrued liabilities” in the accompanying Condensed Consolidated Balance Sheet. As of December 31, 2022, the liability, including accrued interest, was $11.4 million, of which $7.2 million was included in “Accrued liabilities” and $4.2 million in “Other long-term liabilities.”

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
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 1, 2023 (in thousands): Period Future Minimum Lease Payments Remainder of 2023 $ 3,586 2024 4,607 2025 4,104 2026 1,113 2027 and thereafter 745 Total future minimum lease payments 14,155 Less imputed interest (1,199) $ 12,956 As of April 1, 2023, the operating lease liability consisted of the following (in thousands): Accrued liabilities - current portion of operating leases $ 4,131 Operating leases 8,825 $ 12,956 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 $6.7 million and are included in the table above. The weighted average discount rate for the Company’s operating leases as of April 1, 2023 was 5.8%. The weighted average remaining lease term as of April 1, 2023 was 3.2 years. Total rent expense of the Company was $1.2 million and $1.1 million for the three months ended April 1, 2023 and April 2, 2022, respectively. Cash paid within operating cash flows for operating leases was $1.2 million and $1.1 million for the three months ended April 1, 2023 and April 2, 2022, respectively. 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 1, 2023 and December 31, 2022, the Company had approximately $305.7 million and $340.6 million, respectively, of outstanding purchase commitments for inventories to be delivered by its suppliers, including CMs and ODMs, within one 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 $11.4 million and $10.3 million as of April 1, 2023 and December 31, 2022, respectively. The Company records the related charges in cost of revenue in its Condensed Consolidated Statements of Comprehensive Income. 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 proceeding that, if determined adversely to the Company, in management’s opinion, is 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. 01, 2023
Equity [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 1, 2023, there were 4.4 million shares available for issuance under the 2019 Plan. During the three months ended April 1, 2023, stock option awards exercisable for up to an aggregate of 0.4 million shares of common stock were granted with a grant date weighted-average exercise price of $51.77 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 2023, performance-based stock option awards exercisable for up to an aggregate of 1.2 million shares of common stock were granted to certain Company executives with a grant date exercise price of $51.57 per share. The actual number of shares earned is contingent upon achievement of annual corporate financial targets for bookings and non-GAAP net operating income for 2023 (collectively, the “2023 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 2023 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 operating income target and the bookings target are each achieved below 80% of target, no shares would be awarded, and the performance-based stock option awards would be forfeited in full. If either target is achieved at the minimum threshold of 80% of target, then the shares are awarded at 50% of the granted shares, with an increasing percentage of shares awarded above the minimum thresholds up to 125% of the granted shares for each target. Each target result is then weighted by 50% and the combined total determines the percent of target shares. The maximum combined award is 100%. The probability of meeting the performance conditions related to these performance-based stock option awards was assessed to be probable as of April 1, 2023, and stock-based compensation expense of $2.5 million was recognized for the three months ended April 1, 2023. During the three months ended April 1, 2023, shares of common stock of 0.2 million were issued pursuant to the exercise of stock options at a weighted-average exercise price of $12.09 per share. As of April 1, 2023, unrecognized stock-based compensation expense of $105.1 million related to stock options, net of estimated forfeitures, is expected to be recognized over a weighted-average period of 2.3 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. 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 1, 2023, there were 4.6 million shares available for issuance under the ESPP. During the three months ended April 1, 2023, 0.1 million shares were purchased under the ESPP. As of April 1, 2023, unrecognized stock-based compensation expense of $1.0 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 recurring 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 quarterly offering periods from February 8 th through May 7 th , May 8 th through August 7 th , August 8 th through November 7 th and November 8 th through February 7 th of each year, with a maximum of 0.25 million shares allocated per purchase period. As of April 1, 2023, there were 2.9 million shares available for issuance under the NQ ESPP. During the three months ended April 1, 2023, 0.2 million shares were purchased and issued. As of April 1, 2023, unrecognized stock-based compensation expense of $10.9 million related to the NQ ESPP is expected to be recognized over a remaining weighted-average service period of 0.8 years. Stock-Based Compensation The following table summarizes stock-based compensation expense (in thousands): Three Months Ended April 1, April 2, Cost of revenue $ 800 $ 615 Sales and marketing 4,432 2,482 Research and development 4,312 3,745 General and administrative 6,676 3,625 $ 16,220 $ 10,467 Income tax benefit recognized $ 4,153 $ 3,581 Stock Repurchase Program In July 2022, the Company’s Board of Directors authorized a one-year stock repurchase program for up to $100 million of the Company’s common stock. Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. The specific timing, price and size of the purchases depends on prevailing stock prices, general economic and market conditions, and other considerations consistent with the Company’s capital allocation strategy. The repurchase program does not obligate the Company to acquire a particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion. As of April 1, 2023, the remaining authorized amount for stock repurchases under this program was $98.8 million. A summary of the stock repurchase activity under the repurchase program for the three months ended April 1, 2023 is as follows (in thousands, except per share amounts): Aggregate purchase price $ 1,183 Shares repurchased 25 Average price paid per share $ 48.05

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers The Company develops, markets and sells a broadband platform and managed services, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level. Accordingly, the Company is a single reporting segment and operating unit structure. The Company’s chief operating decision maker is the Company’s Chief Executive Officer, who reviews financial information presented on a Company-wide basis, for purposes of allocating resources and evaluating financial performance. The following is a summary of revenue disaggregated by geographic region based upon the location of the customers (in thousands): Three Months Ended April 1, 2023 April 2, 2022 United States $ 227,939 $ 165,631 Europe 12,368 6,573 Americas ex U.S. 7,538 8,871 Middle East & Africa 1,773 3,617 Asia Pacific 390 256 $ 250,008 $ 184,948 Contract Asset Contract assets include amounts recognized as revenue prior to the Company’s contractual right to bill the customer. Amounts are billed in accordance with the agreed-upon contractual terms. The closing balance as of April 1, 2023 was $5.5 million of which the Company expects to bill 77% of the balance during the remainder of 2023. The contract asset balance may fluctuate depending on the timing of fulfilling the related performance obligations with the Company's customers. Contract Liability Deferred revenue was $69.6 million and $58.6 million as of April 1, 2023 and December 31, 2022, respectively. The increase in the deferred revenue balance for the three months ended April 1, 2023 is driven by cash payments received or due in advance of satisfying the Company’s performance obligations and balances reclassified to contract asset during the period offset by $13.0 million of revenue recognized that was included in the deferred revenue balance at the beginning of the period. Revenue allocated to remaining performance obligations (“RPOs”) represents 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 but excludes variable consideration where the monthly invoicing is based on usage or where actual usage exceeds the minimum commitment. RPOs were $206.2 million as of April 1, 2023, and the Company expects to recognize as revenue 37% of this amount 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 1, 2023 and December 31, 2022, the unamortized balance of deferred commissions was $10.3 million and $11.2 million, respectively. For the three months ended April 1, 2023 and April 2, 2022, the amount of amortization was $1.3 million and $0.8 million, respectively. There was no impairment loss in relation to the costs capitalized for either period. Concentration of Customer Risk No customer accounted for more than 10% of the Company’s revenue for the three months ended April 1, 2023 and April 2, 2022.

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended April 1, April 2, Income before income taxes $ 11,409 $ 9,820 Income taxes $ 1,811 $ 1,701 Effective tax rate 15.9 % 17.3 % The Company’s income taxes for the three months ended April 1, 2023 and April 2, 2022 were determined using an estimated effective tax rate adjusted for discrete items that occurred during the respective periods. The Company’s effective tax rate for the three months ended April 1, 2023 and April 2, 2022 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes, the inclusion of income from certain foreign operations and the effect of non-deductible stock-based compensation for executive officers offset by U.S. federal research tax credits and excess tax benefits from stock-based compensation. The Company has net deferred tax assets that have arisen primarily as a result of temporary differences, net operating loss carryforwards, capitalized research and development costs and tax credits. The Company’s ability to realize a deferred tax asset is based on its ability to generate sufficient future taxable income within the applicable carryforward period and subject to any applicable limitations. Management believes that it is more likely than not we will utilize a significant portion of our deferred tax assets. The Company maintained a valuation allowance of $29.9 million on certain U.S. federal and state deferred tax assets that the Company believes are not more likely than not to be realized in future periods. The Company considered scheduled reversals of deferred tax liabilities, historic profitability, projected future taxable income, ongoing tax planning strategies and other matters, including the period over which its deferred tax assets will be recoverable, in assessing the need for and the amount of the valuation allowance. In the event that actual results differ from these estimates, or if the Company decides to adjust these estimates in the future periods, further adjustments to its valuation allowance may be recorded, which could materially impact the Company’s financial position and net income in the period of the adjustment.

Net Income Per Common Share

Net Income Per Common Share	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Net Income Per Common Share	Net Income Per Common Share The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data): Three Months Ended April 1, April 2, Numerator: Net income $ 9,598 $ 8,119 Denominator: Weighted-average common shares outstanding used to compute basic net income per share 66,044 64,489 Effect of dilutive common stock equivalents 3,664 3,916 Weighted-average common shares outstanding used to compute diluted net income per share 69,708 68,405 Net income per common share: Basic net income per common share $ 0.15 $ 0.13 Diluted net income per common share $ 0.14 $ 0.12 Potentially dilutive shares excluded, weighted average 3,023 1,231 Potentially dilutive shares have been excluded from the computation of diluted net income per common share when their effect is antidilutive. These antidilutive shares were from stock options.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2023
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 as of December 31, 2022 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, 2022. 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 one less day in the three months ended April 1, 2023 than for the three months ended April 2, 2022. 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.
Newly Adopted Accounting Standard and Recent Accounting Pronouncements Not Yet Adopted	Newly Adopted Accounting Standard The Company did not adopt any new accounting standards during the three months ended April 1, 2023 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 1, 2023 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, that are significant or potentially significant to the Company.
Revenue Recognition	The Company develops, markets and sells a broadband platform and managed services, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the Company unit level. Accordingly, the Company is a single reporting segment and operating unit structure. The Company’s chief operating decision maker is the Company’s Chief Executive Officer, who reviews financial information presented on a Company-wide basis, for purposes of allocating resources and evaluating financial performance.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash (Tables)	3 Months Ended
	Apr. 01, 2023
Cash and Cash Equivalents [Abstract]
Summary of cash and cash equivalents	Cash, cash equivalents and marketable securities consisted of the following (in thousands): April 1, December 31, Cash and cash equivalents: Cash $ 51,134 $ 39,189 Commercial paper 31,482 33,199 Money market funds 6,249 555 U.S. government agency securities 5,072 — Corporate debt securities 249 140 U.S. government securities — 5,990 Total cash and cash equivalents 94,186 79,073 Marketable securities: U.S. government securities 96,545 106,750 U.S. government agency securities 31,727 23,632 Commercial paper 31,404 28,992 Corporate debt securities 3,188 3,168 Municipal securities — 100 Total marketable securities 162,864 162,642 $ 257,050 $ 241,715
Debt securities, available-for-sale	The amortized cost and fair value of marketable securities were as follows (in thousands): As of April 1, 2023 Amortized Cost Gross Unrealized Gains/(Losses) Fair Value U.S. government securities $ 97,240 $ (695) $ 96,545 Commercial paper 62,933 (47) 62,886 U.S. government agency securities 36,914 (115) 36,799 Corporate debt securities 3,423 14 3,437 Total marketable securities $ 200,510 $ (843) $ 199,667 As of December 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value U.S. government securities $ 114,119 $ (1,379) $ 112,740 Commercial paper 62,262 (71) 62,191 U.S. government agency securities 23,876 (244) 23,632 Corporate debt securities 3,312 (4) 3,308 Municipal securities 101 (1) 100 Total marketable securities $ 203,670 $ (1,699) $ 201,971

Fair Value Measures and Disclos

Fair Value Measures and Disclosures (Tables)	3 Months Ended
	Apr. 01, 2023
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 1, 2023 Level 1 Level 2 Total Money market funds $ 6,249 $ — $ 6,249 U.S. government securities 96,545 — 96,545 Commercial paper — 62,886 62,886 U.S. government agency securities — 36,799 36,799 Corporate debt securities — 3,437 3,437 $ 102,794 $ 103,122 $ 205,916 As of December 31, 2022 Level 1 Level 2 Total Money market funds $ 555 $ — $ 555 U.S. government securities 112,740 — 112,740 Commercial paper — 62,191 62,191 U.S. government agency securities — 23,632 23,632 Corporate debt securities — 3,308 3,308 Municipal securities — 100 100 $ 113,295 $ 89,231 $ 202,526

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Apr. 01, 2023
Balance Sheet Related Disclosures [Abstract]
Summary of accounts receivable, net	Accounts receivable, net consisted of the following (in thousands): April 1, December 31, Accounts receivable $ 92,481 $ 94,201 Allowance for doubtful accounts (272) (397) $ 92,209 $ 93,804
Summary of inventory	Inventory consisted of the following (in thousands): April 1, December 31, Raw materials $ 696 $ 640 Finished goods 155,817 148,520 $ 156,513 $ 149,160
Summary of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following (in thousands): April 1, December 31, Supplier deposits $ 35,422 $ 39,064 Prepaid expenses and other current assets 34,880 23,627 $ 70,302 $ 62,691
Summary of property and equipment, net	Property and equipment, net consisted of the following (in thousands): April 1, December 31, Test equipment $ 46,591 $ 44,106 Computer equipment 14,041 13,396 Software 10,896 10,389 Leasehold improvements 1,733 1,730 Furniture and fixtures 1,178 1,153 Total 74,439 70,774 Accumulated depreciation and amortization (47,020) (44,940) $ 27,419 $ 25,834
Summary of accrued liabilities	Accrued liabilities consisted of the following (in thousands): April 1, December 31, Compensation and related benefits $ 16,821 $ 27,813 Component inventory held by suppliers 11,360 10,280 Revenue share payments 10,490 7,210 Professional and consulting fees 8,889 7,307 Taxes payable 6,451 4,581 Current portion of warranty and retrofit 6,216 6,377 Customer advances or rebates 4,515 5,653 Operating leases 4,131 3,949 Product returns 2,554 2,961 Insurance 2,139 1,785 Freight 1,442 3,649 Business events — 3,167 Other 5,830 5,742 $ 80,838 $ 90,474
Product warranty activities	Changes in the Company’s accrued warranty and retrofit liability were as follows (in thousands): Three Months Ended April 1, April 2, Balance at beginning of period $ 8,386 $ 9,594 Accruals for product warranty and retrofit 1,016 527 Cost of warranty and retrofit claims (957) (551) Balance at end of period $ 8,445 $ 9,570

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Apr. 01, 2023
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 1, 2023 (in thousands): Period Future Minimum Lease Payments Remainder of 2023 $ 3,586 2024 4,607 2025 4,104 2026 1,113 2027 and thereafter 745 Total future minimum lease payments 14,155 Less imputed interest (1,199) $ 12,956
Lessee, operating lease liability	As of April 1, 2023, the operating lease liability consisted of the following (in thousands): Accrued liabilities - current portion of operating leases $ 4,131 Operating leases 8,825 $ 12,956

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Apr. 01, 2023
Equity [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 1, April 2, Cost of revenue $ 800 $ 615 Sales and marketing 4,432 2,482 Research and development 4,312 3,745 General and administrative 6,676 3,625 $ 16,220 $ 10,467 Income tax benefit recognized $ 4,153 $ 3,581
Schedule Of Stock Repurchase Activity	A summary of the stock repurchase activity under the repurchase program for the three months ended April 1, 2023 is as follows (in thousands, except per share amounts): Aggregate purchase price $ 1,183 Shares repurchased 25 Average price paid per share $ 48.05

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Apr. 01, 2023
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 1, 2023 April 2, 2022 United States $ 227,939 $ 165,631 Europe 12,368 6,573 Americas ex U.S. 7,538 8,871 Middle East & Africa 1,773 3,617 Asia Pacific 390 256 $ 250,008 $ 184,948

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Schedule of income taxes	The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months Ended April 1, April 2, Income before income taxes $ 11,409 $ 9,820 Income taxes $ 1,811 $ 1,701 Effective tax rate 15.9 % 17.3 %

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Schedule of net income (loss) per share	The following table sets forth the computation of basic and diluted net income per common share for the periods indicated (in thousands, except per share data): Three Months Ended April 1, April 2, Numerator: Net income $ 9,598 $ 8,119 Denominator: Weighted-average common shares outstanding used to compute basic net income per share 66,044 64,489 Effect of dilutive common stock equivalents 3,664 3,916 Weighted-average common shares outstanding used to compute diluted net income per share 69,708 68,405 Net income per common share: Basic net income per common share $ 0.15 $ 0.13 Diluted net income per common share $ 0.14 $ 0.12 Potentially dilutive shares excluded, weighted average 3,023 1,231

Cash, Cash Equivalents, and M_2

Cash, Cash Equivalents, and Marketable Securities - Summary of Cash and Cash Equivalents (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Realized gains and losses on marketable securities	$ 0	$ 0
Total cash and cash equivalents	94,186,000		$ 79,073,000
Marketable securities	162,864,000		162,642,000
Total cash, cash equivalents, and marketable securities	257,050,000		241,715,000
U.S. government securities | Short-Term Marketable Securities
Cash and Cash Equivalents [Line Items]
Marketable securities	96,545,000		106,750,000
U.S. government agency securities
Cash and Cash Equivalents [Line Items]
Marketable securities	31,727,000		23,632,000
U.S. government agency securities | Short-Term Marketable Securities
Cash and Cash Equivalents [Line Items]
Marketable securities	36,799,000		23,632,000
Commercial paper
Cash and Cash Equivalents [Line Items]
Marketable securities	31,404,000		28,992,000
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Marketable securities	3,188,000		3,168,000
Corporate debt securities | Short-Term Marketable Securities
Cash and Cash Equivalents [Line Items]
Marketable securities	3,437,000		3,308,000
Municipal securities
Cash and Cash Equivalents [Line Items]
Marketable securities	0		100,000
Municipal securities | Short-Term Marketable Securities
Cash and Cash Equivalents [Line Items]
Marketable securities			100,000
Cash
Cash and Cash Equivalents [Line Items]
Cash	51,134,000		39,189,000
Commercial paper
Cash and Cash Equivalents [Line Items]
Cash equivalents	31,482,000		33,199,000
Money market funds
Cash and Cash Equivalents [Line Items]
Cash equivalents	6,249,000		555,000
U.S. government agency securities
Cash and Cash Equivalents [Line Items]
Cash equivalents	5,072,000		0
Corporate debt securities
Cash and Cash Equivalents [Line Items]
Cash equivalents	249,000		140,000
U.S. government securities
Cash and Cash Equivalents [Line Items]
Cash equivalents	$ 0		$ 5,990,000

Cash, Cash Equivalents, and M_3

Cash, Cash Equivalents, and Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 162,864	$ 162,642
Short-Term Marketable Securities And Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	200,510	203,670
Gross Unrealized Gains/(Losses)	(843)	(1,699)
Fair Value	199,667	201,971
U.S. government securities | Short-Term Marketable Securities And Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	97,240	114,119
Gross Unrealized Gains/(Losses)	(695)	(1,379)
Fair Value	96,545	112,740
U.S. government securities | Short-Term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	96,545	106,750
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Fair Value	31,404	28,992
Commercial paper | Short-Term Marketable Securities And Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	62,933	62,262
Gross Unrealized Gains/(Losses)	(47)	(71)
Fair Value	62,886	62,191
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	31,727	23,632
U.S. government agency securities | Short-Term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	36,914	23,876
Gross Unrealized Gains/(Losses)	(115)	(244)
Fair Value	36,799	23,632
Municipal securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	0	100
Municipal securities | Short-Term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		101
Gross Unrealized Gains/(Losses)		(1)
Fair Value		100
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	3,188	3,168
Corporate debt securities | Short-Term Marketable Securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	3,423	3,312
Gross Unrealized Gains/(Losses)	14	(4)
Fair Value	$ 3,437	$ 3,308

Fair Value Measures and Discl_2

Fair Value Measures and Disclosures (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 162,864	$ 162,642
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	31,404	28,992
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	31,727	23,632
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	3,188	3,168
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	100
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	205,916	202,526
Fair Value, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	102,794	113,295
Fair Value, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	103,122	89,231
Fair Value, Recurring | U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	96,545	112,740
Fair Value, Recurring | U.S. government securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	96,545	112,740
Fair Value, Recurring | U.S. government securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Fair Value, Recurring | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	62,886	62,191
Fair Value, Recurring | Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Fair Value, Recurring | Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	62,886	62,191
Fair Value, Recurring | U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	36,799	23,632
Fair Value, Recurring | U.S. government agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Fair Value, Recurring | U.S. government agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	36,799	23,632
Fair Value, Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	3,437	3,308
Fair Value, Recurring | Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Fair Value, Recurring | Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	3,437	3,308
Fair Value, Recurring | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		100
Fair Value, Recurring | Municipal securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		0
Fair Value, Recurring | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities		100
Fair Value, Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	6,249	555
Fair Value, Recurring | Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	6,249	555
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	$ 0

Balance Sheet Details - Account

Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Summary of accounts receivable, net
Accounts receivable	$ 92,481	$ 94,201
Allowance for doubtful accounts	(272)	(397)
Accounts receivable, net	$ 92,209	$ 93,804

Balance Sheet Details - Invento

Balance Sheet Details - Inventory (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Summary of inventory, net
Raw materials	$ 696	$ 640
Finished goods	155,817	148,520
Total inventory	$ 156,513	$ 149,160

Balance Sheet Details - Prepaid

Balance Sheet Details - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Balance Sheet Related Disclosures [Abstract]
Supplier deposits	$ 35,422		$ 39,064
Prepaid expenses and other current assets	34,880		23,627
Total prepaid expense and other assets	$ 70,302	$ 62,691	$ 62,691

Balance Sheet Details - Propert

Balance Sheet Details - Property and Equipment, net (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Summary of property and equipment, net
Property and equipment, gross	$ 74,439	$ 70,774
Accumulated depreciation and amortization	(47,020)	(44,940)
Property and equipment, net	27,419	25,834
Test equipment
Summary of property and equipment, net
Property and equipment, gross	46,591	44,106
Computer equipment
Summary of property and equipment, net
Property and equipment, gross	14,041	13,396
Software
Summary of property and equipment, net
Property and equipment, gross	10,896	10,389
Leasehold improvements
Summary of property and equipment, net
Property and equipment, gross	1,733	1,730
Furniture and fixtures
Summary of property and equipment, net
Property and equipment, gross	$ 1,178	$ 1,153

Balance Sheet Details - Narrati

Balance Sheet Details - Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Accrued liabilities	$ 80,838	$ 90,474
Other long-term liabilities	2,331	6,332
Licensed Software
Finite-Lived Intangible Assets [Line Items]
Royalty payment commitment			$ 15,800
Other liabilities	$ 10,500	11,400
Accrued liabilities		7,200
Other long-term liabilities		$ 4,200

Balance Sheet Details - Accrued

Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Summary of accrued liabilities
Compensation and related benefits	$ 16,821	$ 27,813
Component inventory held by suppliers	11,360	10,280
Revenue share payments	10,490	7,210
Professional and consulting fees	8,889	7,307
Taxes payable	6,451	4,581
Current portion of warranty and retrofit	6,216	6,377
Customer advances or rebates	4,515	5,653
Operating leases	4,131	3,949
Product returns	2,554	2,961
Insurance	2,139	1,785
Freight	1,442	3,649
Business events	0	3,167
Other	5,830	5,742
Total accrued liabilities	$ 80,838	$ 90,474

Balance Sheet Details - Warrant

Balance Sheet Details - Warranty Reserve (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 8,386	$ 9,594
Accruals for product warranty and retrofit	1,016	527
Cost of warranty and retrofit claims	(957)	(551)
Balance at end of period	$ 8,445	$ 9,570

Commitments and Contingencies -

Commitments and Contingencies - Operating Leases (Details) $ in Thousands	Apr. 01, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2023	$ 3,586
2024	4,607
2025	4,104
2026	1,113
2027 and thereafter	745
Total future minimum lease payments	14,155
Less imputed interest	(1,199)
Operating lease liability	$ 12,956

Commitments and Contingencies_2

Commitments and Contingencies - Operating Lease Liability (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Accrued liabilities - current portion of operating leases	$ 4,131	$ 3,949
Operating leases	8,825	$ 8,442
Operating lease liability	$ 12,956
Operating lease, liability, current, statement of financial position	Accrued Liabilities, Current

Commitments and Contingencies_3

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
Commitments and Contingencies [Line Items]
Total future minimum lease payments	$ 14,155
Weighted average operating discount rate used to determine the operating lease liability (percent)	5.80%
Weighted average remaining lease term for operating lease	3 years 2 months 12 days
Rent expense	$ 1,200	$ 1,100
Operating lease, payments	1,200	$ 1,100
Accrued customer rebates/prepayments	11,360		$ 10,280
Inventories
Commitments and Contingencies [Line Items]
Outstanding purchase commitments	$ 305,700		$ 340,600
Inventories | Minimum
Commitments and Contingencies [Line Items]
Purchase commitment period	1 year
Inventories | Maximum
Commitments and Contingencies [Line Items]
Purchase commitment period	2 years
San Jose, California
Commitments and Contingencies [Line Items]
Total future minimum lease payments	$ 6,700

Stockholders' Equity - 2019 Equ

Stockholders' Equity - 2019 Equity Incentive Award Plan (Details) shares in Millions	Apr. 01, 2023 shares
2019 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant (in shares)	4.4

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2023	Apr. 01, 2023	Apr. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		400,000
Weighted-average grant date fair value (in dollars per share)		$ 51.77
Maximum combined payout percent	100%
Stock-based compensation		$ 16,220	$ 10,467
Stock options exercised (in shares)		200,000
Weighted-average exercise price per share, stock options (in dollars per share)		$ 12.09
Unrecognized stock-based compensation expense, stock options		$ 105,100
Recognition period		2 years 3 months 18 days
2021 Performance Targets | Stock Options | Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage		25%
2021 Performance Targets | Stock Options | Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
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)	1,200,000
Weighted-average grant date fair value (in dollars per share)	$ 51.57
Award performance period	1 year
Net income per share, target achievement performance threshold, percent	80%
Number of shares granted if no-GAAP income below 80% and bookings below 90% of target (in shares)	0
Shares award weighting percent	50%
Target achievement threshold for shares award sliding scale	125%
Stock-based compensation		$ 2,500
2021 Performance Targets | Performance Based Stock Options | Period One | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Award vesting rights, percentage	25%
2021 Performance Targets | Performance Based Stock Options | Period Two | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	36 months
Award vesting rights, percentage	75%

Stockholders' Equity - Employee

Stockholders' Equity - Employee Stock Purchase Plans (Details) $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($) plan period shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of employee stock purchase plans | plan	2
Recognition period	2 years 3 months 18 days
Unrecognized stock-based compensation expense, stock options | $	$ 105.1
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP, maximum employee payroll deduction percentage	15%
Number of offering periods | period	2
Offering period	6 months
ESPP, discounted purchase price percentage	85%
Shares available for future grant (in shares)	4,600,000
Shares purchased under ESPP (in shares)	100,000
Unrecognized stock-based compensation expense | $	$ 1
Recognition period	4 months 24 days
Employee Stock Purchase Plan | 2017 Nonqualified Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP, maximum employee payroll deduction percentage	25%
Shares available for future grant (in shares)	2,900,000
Recognition period	9 months 18 days
Employee termination period following purchase date to receive shares subject to risk of forfeiture	1 year
Maximum number of shares allocated per purchase period	250,000
Number of shares issued (in shares)	200,000
Number of shares purchased (in shares)	200,000
Unrecognized stock-based compensation expense, stock options | $	$ 10.9

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 16,220	$ 10,467
Income tax benefit recognized	4,153	3,581
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	800	615
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	4,432	2,482
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	4,312	3,745
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 6,676	$ 3,625

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2022	Apr. 01, 2023
Equity [Abstract]
Stock repurchase program, period authorized	1 year
Stock repurchase program, authorized amount	$ 100,000
Remaining authorized repurchase amount		$ 98,800
Repurchases of common stock		$ 1,183
Shares repurchased (in shares)		25
Average price paid per share (in dollars per share)		$ 48.05

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Disaggregation of Revenue [Line Items]
Total revenues	$ 250,008	$ 184,948
United States
Disaggregation of Revenue [Line Items]
Total revenues	227,939	165,631
Europe
Disaggregation of Revenue [Line Items]
Total revenues	12,368	6,573
Americas ex U.S.
Disaggregation of Revenue [Line Items]
Total revenues	7,538	8,871
Middle East & Africa
Disaggregation of Revenue [Line Items]
Total revenues	1,773	3,617
Asia Pacific
Disaggregation of Revenue [Line Items]
Total revenues	$ 390	$ 256

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Contract Asset and Liability (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract with customer, asset	$ 5.5
Contract with customer, asset, expected to be billed remainder of year, percent	77%
Deferred revenue	$ 69.6	$ 58.6
Contract with customer, liability, revenue recognized	$ 13

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Performance Obligations (Details) $ in Millions	Apr. 01, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, amount	$ 206.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	37%
Performance obligations expected to be satisfied, expected timing	1 year

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Contract Costs (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Capitalized contract cost, gross	$ 10,300,000		$ 11,200,000
Capitalized contract cost, amortization	1,300,000	$ 800,000
Capitalized contract cost, impairment	$ 0	$ 0

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Concentration Risk (Details) - Customer Concentration Risk - Accounts Receivable	3 Months Ended	12 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Customer One
Concentration Risk [Line Items]
Concentration risk, percentage	12%	11%
Customer Two
Concentration Risk [Line Items]
Concentration risk, percentage	11%

Income Taxes - (Details)

Income Taxes - (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Income before income taxes	$ 11,409	$ 9,820
Income taxes	$ 1,811	$ 1,701
Effective tax rate	15.90%	17.30%
Valuation allowance	$ 29,900

Net Income Per Common Share (De

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Numerator:
Net income	$ 9,598	$ 8,119
Denominator:
Weighted-average common shares outstanding used to compute basic net income (loss) per share (in shares)	66,044	64,489
Effect of dilutive common stock equivalents (in shares)	3,664	3,916
Weighted-average common shares outstanding used to compute diluted net income (loss) per share (in shares)	69,708	68,405
Net income per common share:
Basic net income per common share (in dollars per share)	$ 0.15	$ 0.13
Diluted net income per common share (in dollars per share)	$ 0.14	$ 0.12
Potentially dilutive shares, weighted average (in shares)	3,023	1,231