CALX - Earnings call transcript Q1 2019

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Operator

Greetings. Welcome to the Calix Q1 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. the Investor to Relations. turn Dinges, host now of Director will conference your over Thom I Mr. Dinges, may you begin.

Thomas Dinges

call. call, Thank you, Carl Cory our conference Sindelar. joining Thank Russo; you on operator, and Chief good QX afternoon, as well XXXX Financial and have President we everyone. as for Today CEO, the Officer, earnings

call As in Investor as conference filing on the be an Relations website. this of will well Relations we Calix the Calix our released audio the morning reminder, website. for X-K a letter stockholders the section replay to available Investor of as This in section

me reports measures Before the measures. differ this Unless let performance, otherwise we will non-GAAP our statements I to strategy call measures. and call, Calix non-GAAP Carl? is outlook, Reconciliation growth on all obligation conference forward-looking future we to refer stated in we over update remind you any dates. GAAP Carl. we both only assumes which our continue, our and to call, their and turn this SEC. filed market we'll speak with of letter GAAP non-GAAP to this that, actual trends statements, include want results With statements, actual make on operating in Also to as call, included those which no in today's financial and stockholders from of to quarterly stockholders. and will forward-looking could discuss about reference the respective these letter that are forth contemplated financial and that Factors forward-looking set annual materially to results in may statements. cause to materially differ by and

Carl Russo

you, Tom. Thank

our XXXX. to all moving an wave continues platform in of industry the disruption ride pursuit Our model of through

investments year-over-year. is our expanded not continued more even were that first line meet were than margin XX% our was of supply year-over-year innovation go as year-over-year. our OpEx one with nor our delivering in Bookings respect meet one well one. unabated chain they growth. did good solid Gross XXX with And did every now that by our basis aspect declining pace one not X% Our The plan commitment. in their of tightly needs except controlled did points quarter partners a

While not they are improving, our is dampening customers, this expect has the at enthusiasm our and I for they second we as revenue our committed a employees rate the dampening for platforms. and disappointed am result. in isn't am yet their on of I are quarter production our What some sorry the and had stockholders. impact

ahead of seeing second result and value our today, of direct customers quarter. exciting the This As are bookings platforms. of the our plan of a for is

some of are, service Some reduced take XX first XX% we within first these increase year, marketing reducing times, the of XX customers are integration truck on examples months rolls campaigns announced. than that value the over deployment, XX%, our in rates months already of marketing and benefits, greater increase ROIs XX% the weeks. by the just OSSBS revenue reduce service interventions XX derived yielding call support XX%, by times technician from to reduced by And have campaigns three XX% are by by the

another started. in these service offerings. XX these Stay generation we're first next outstanding is to like that outcomes it the the choose In coming we months. getting have more Given surprise it hear benefits, tuned in Calix their to no quarter customers right. build And conclusion, new just

stockholder encourage get the first on right to a right down. services Calix. at the letter a and the download details you each that, all the supply into and issue have the right time platforms chain our view temporary With and us strongly will quarter not We and slow future I the for of

Operator? questions. for call the open Let's

Operator

conducting be your [Operator from question. we'll Instructions] Our George proceed Please time, a with question this first Notter, question-answer session. Jefferies. comes At

George Notter

could get guys. very what chain I the issues of up well. about to Any right just the coming now the manufacturing be would handicap wanted outlook chain guess to how the trying is partner letter and speed. back this. wondering supply to I and I of to supply in go more much. certainly of I great tell but when terms you I'm us problem Thanks as nature I'm guess that Hi, kind read the we pass

Carl Russo

being balance First early in early, you, of this I the not end the know will will George. be as quarter all we dampened be for believe getting perceived but upon it what based have said for our be is probably clearly we do issues it. We complete. these the up thanks not quarter. by That I largely of for appreciate revenue guidance to

quite if is a Production do. me XX% think than bit to it greater with mean work I you're So our have of still ballpark, of flowing. asking they sort we manufacturer, for this of be but greater there, will

So let and helping mode. present the tense them flowing start you to other to rationing else to can out got in being we're Does But at our There very to are our essence are you? you've to enough units inventory give maybe tell some. at production their shipping and make me give you color we statement. that them least if customers that sure inventory do will customers. you deployment that give not I because sensitive in keep our least about if we we're we What

George Notter

to going get unusual guess then something what and that surprised volume. that Is that the assumption that's new different stand exactly sure. issue to precise we're first this outside this partner past or to Yes was I is of and the I'm ramp manufacturing in ramping program quarter. know we're of get just you you why is terms ability China this that trying time. to a the about My there for

Carl Russo

So let's put this.

paint So let we back where picture started. that me to

supply continue over plans next a the with to XX% our deliberately years slowly of US a imposed. We're you couple fit tariff. are a situation tariffs reengineering dealing where our when in And have model. threatening you're and platform chain As that know to the now all XX% been we we've

made And decision reengineering accelerate to moved two essence so vendors. new that in the we've to we

three no have There vendors in in that here. process. We magic is to ones supply major new chain. moved our two We

these simply moved not mean and new blunt per I So class are being existing manufacturer products are products a being they not simply manufactured being were world be execute. they say to they did that were these moved to

of of to And late ramp bought not And blunt, They ahead eating got we're to much know start. the counting more off risk inventory. paying is ramping now. I quarter late ahead are risk they they in all it. if know compare overages. a be the brainer. We went them the to the are on you on and no and of expert correct versus to You This this and risk that's to a tariffs fees that the the take. There's

no So they understand what occurred. there's And they'll magic remedy here. But it is accordingly.

George Notter

in I'm And in customers be guess of customers Does or the hear supply just chain it. product customer new now marketing it these and the I guess right given that the about customers I base allocation the just now, Got was of constraints make I across allocating new to fulfilling right terms product commentary XX demand. wondering sense how you're to quarter. Okay. then to the you surprised say

Carl Russo

have associated we it. that have a products remember set Well, hardware with don't of

So again, offering demand makes effort continue for sense absolutely to than what it are marketing the in for our market. us we the is

be was they ramp market this grow unconstrained an to. problem. a so committed for I initial are continue the no. probably that then not business. to It's If answer question behind to a it's And number weeks would sure an and matter going think of But the we of your are problem, the unconstrained to

And largely through Don't so in be know make that. that again pause we would this believe it quarter. no in we we'll

George Notter

appreciate I Thank Okay. you the commentary. much very

Carl Russo

George. Thanks

Operator

Craig Our proceed with next Please Christian from Schwab, your question. question comes Hallum.

Tyler Burmeister

This on Christian. Tyler for question. is Thanks taking quick for

I revenues of equilibrium QX, what like your QX. is So all It first was in reach letter shortfall shortfall up the half you I to be wondering, was to then you level million demand, the then. return normal We'll guess to to there second that made ever kind stated and demand in the QX. XX a supply was looked about or to expect QX. in demand the the the QX. revenue And of do in lost kind this you expected in

Carl Russo

Yeah.

over I'm time be I but that sure half. would in expect more to in was And So it much QX not characterize demand demand that than the the we look enormous. second in fulfilled not shortfall significant, saying

Tyler Burmeister

all Thanks me. right. for works. All That That's guys.

Carl Russo

Tyler. Thanks

Operator

with Our Please Instructions] your comes next Capital. Northland from question. Tim Stelqua, [Operator proceed question

Tim Stelqua

for stronger customers on weaker. Good customers the you for morning. medium me. questions many extent of QX the There's A comment a couple to larger we're couple quick a in bit letter sized of

characterize ones to to deploying networks. wonder reference quarter strength you customer new I you Windstream your think access in had the And referenced bookings of some being I in that or situation and how in of applies if could the those might to you your have of any what come they're that both. revenue there's XX% whether you or do kind kind category. probably next And know customer having kind gen

Carl Russo

Thanks Tim.

So.

I see address by if your segments. So let can me question

let's go their to in does legs. headwinds headwinds First the So the go let's

continued wireline into are quarter. So have those the companies publicly traded the first

Obviously you likes our are had to eliminated as consolidated bankruptcy be we me. down recently this so Windstream And dividend. excuse the their year planning announcements

but see quarter expect to any is not earlier be larger continuing You stand comment a they I to a from group will hear my leveraging this it CenturyLink momentum. have as We very given and customer so sure. from did a themes the a customer customer down will XX% be XX% we customers. positive on And of Consolidated new them year. that significant be We're on the to

these committed unabated couple probably following edge they on. intelligent network What's one are their to shape you going you. an announcements earnings years quite so network but continue of delivering is they for over robustly As aware of next are sort fiber that their

Tim Stelqua

what to any expertise rolling It for one I that customer expectations I whether have that up. project can ramp are does sort you've seen year through of maybe and initial UK to out with and add the or your follow

Carl Russo

Yeah that That's days. has correct. it's started but early the

follow your Tim up on You

Tim Stelqua

in of there there vanguard X-X is terms your well to to clearly this the which say opportunities market out to I opportunities wonder know converge generally in look haul front or one as infrastructure back XG in carrier you any going both at obviously the more of to he you to type for addition mean know fiber could if not? and are I'd and really. are back Okay beginning extent I in way some and of with discuss wealth kind you haul the plans you access fiber Verizon

Carl Russo

correctly. think you're it actually your I in question phrased

been always and Horizon going engineering of that's on leader technology what's a have an oriented this you in front think market. I in that's out company

So as still there's no of we wave question that deployed in technologies this of very such. But days converge very, are be next we'll early deployments. think and I

So XX% obviously happen what's I think to in in XG front is of behind us. us not of going

to this shape your think I is that build one seeing is that lead you're Does timing it another for I question you. Verizon If help think of X year and pack. XX

Tim Stelqua

It does. Thanks very much.

Carl Russo

Thanks Dan

Operator

questions remarks. no this [Operator is call will now over closing Dinges further for and at Instructions] back that the turn to There Tom time are

Thomas Dinges

call operator. Information you thank Calyx on Investor future and conferences conference interest This during again Once everyone second you us to now. you, for the of calico. this for number participating on investor Presentations today. be in posted Calyx the Thank Events XXXX. joining thank investor of your at call. webcast our is on events concludes Goodbye section quarter and of and for Management Relations of a we'll these page the about the

Operator

conference. today's concludes This

disconnect may lines Thank for your your participation. this You at you time.

Calix (CALX) 1 May 192019 Q1 Earnings call transcript