Calix (CALX) 27 Jan 222021 Q4 Earnings call transcript

Company Profile

Participants

Thomas Dinges	Director, IR
Carl Russo	Chairman, CEO
Cory Sindelar	CFO
Michael Weening	President, COO
George Notter	Jefferies
Paul Silverstein	Cowen
Michael Genovese	WestPark Capital
Tim Savageaux	Northland Capital
Chris Howe	Barrington
Ryan Koontz	Needham & Company
Christian Schwab	Craig-Hallum

Call transcript

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Operator

Hello, and welcome to the Calix Fourth Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Tom Dinges. Please go ahead.

Thomas Dinges

Thank you, operator, and good morning, everyone. our XXXX joining call. for you fourth earnings quarter Thank Officer, and we Russo; and Today Operating call, Chairman President Weening. CEO, Chief Sindelar; on the Cory have Carl Officer, Chief and Michael Financial

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

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

Carl Russo

than customers the XX% again clearly have greater our for team Calix the our year. of see All the business entire continued meet year they and Platform With that Calix in revenue supply in seasonality for executed the achieving evident their bookings second The for changing. in is as resulted to demand historical Tom. guidance chain with our enable our team revenue consecutive to we growth. subscriber quarter first The quarter. in strong of quarter, our just offerings, the fourth excellence This Thanks,

first our For even revenue our up order customer our history, the we associated the quarter, the in dramatically has from systems, platforms, driven sequentially are time we company's see interactions fourth provide though which the by flow. smoothed

annual single As the history in on customer XXXX an a we XX% marks time first basis. our have not when indication, a further did

a We to linear expect trend model this to more revenue continue.

adopted More importantly, directly continues One even marking opportunity, it. broadband total in perfectly positioned as new to This customers platform on high. platforms the to capture execute intend and slows providers of work, speaks quarter, and and for multi-year in demand XXX, an world economies of the to a back to enormous have focus is clear the to the we It this example execution our service brought our to the XX year our we of was for continue to innovative addition who pandemic helping which our the steepen. succeed. strategy secular are front around get

high-performing team supply have persist the through will we up While least constraints XXXX, for at a is challenge. that

Operator? call mission Investor at value. on simplify open that, you attract their grow people our their for subscribers their our as next let’s talented on Our excite us us February. who look focused forward businesses, helping are customers the to XXrd Day of also month Wednesday, is same to With strategy help We questions. the the seeing and

Operator

from coming from first today Jefferies. [Operator question is Instructions] George Our Notter

George Notter

There that everybody if is are guess the the other wondering seeing supply these in guess Congrats guys in last days. group are chain decommits companies days. I ask to those about wanted here. the Obviously, I’m are I the on good XX talking seeing environment. significant I just about it results talking side? they’re you suppliers that component issues from about from your

Carl Russo

let hard. folks worst there And some about it. of because there to different I’m this going Supply some actually times give a out color. is decomits. for environment point just the yes. to from to they’re – to give I harder as To of it’s frame in is for you answer sort George, ask cases, So is to this moment. absolutely information significant me a No seeing. want what But and your Cory sense details of you about best times, doubt

On the other the their provider side subscribers services to growing actually subscribers. are customers of those growing service our equation, our broadband and

we see what very we is focus robust. is which is on, what subscriber So demand,

If X, given we those you obviously our focused model, balance strategy. a have product

also high-value We a have offering.

you you’re on have Those So number of but the to the how I industries. around but supply. industry, a a figuring upswing, supply, going that we’re go the to to in will think on value going proposition this side, that supply also it. look see out going get are they’re and is the pay the outperform if you actually strong for are for on companies And paying

some seeing. So what understand want George and maybe we’re with help details that, give Cory, you to to

Cory Sindelar

some had inside that that in That the bit And margin more we another effect X had quarter. benefit had a as of that future see gross us could decommits working little out gave in our moving recently, decommit ago, as we're a now. early period. on you just purchase that the through fourth quarter our a weeks commented the supplier we letter the of we variances price into fourth from of quarter, George, Yes, some

we we move them, to work through yes, forward. as but those So continue seeing we're

George Notter

Got it.

same supply back if pricing the chain, I I given guys think, lot your customers. to increasing understand Okay. keep broadband these is impacts a higher And and we've you pricing then And the days. you going -- price but lid then on at from price thoughts if value decision, with you but And -- guys feels raising on back, keep customer any to going these customers. sense space you about pricing, kind Obviously, costs to even focus customers -- look inflationary for conversation your everybody want could talk made they're that the a to to of guys and it some I a of the the there's time, here raising the go and proposition revisit like heard you it in -- of input around does make discussion?

Carl Russo

we know discussions. those raising to broadband sorry. obviously who’s want George, have answer is the I pricing,

no and We prices have report raised not there’s today. news to

George Notter

it. Got

wanted the X% then ask, shareholder the sales I And X XX% on growth long-term any the but letter the – see reiterates XXXX press to didn’t growth. I Okay. sales comment to last guidance,

the talked guys XX% Any high X% update end of you range. previously, the sales growth on to think I year? for about this

Carl Russo

that us that I Cory? and if think no end to had to see by to be that the that, environment. the but of would thoughts because don't So a the know quarter I to subscriber stance don't there's at last demand answer we stay -- Cory, robust see you want continue is, demand high we range. change driven I you'll add any to continue subscriber

Cory Sindelar

you February an we’ll invite outlook. to and Yes. our long-term provide on And update would maybe come the Day I Analyst to in

Operator

Our next is from coming Silverstein question Paul from Cowen.

Paul Silverstein

comment a hear Vegas. to say about good Actually you

like? that put And recognize long-term said, growth the out So everybody Carl, and reminded X%, the us we on year the demand for you else. lead challenge statement. year. isolated doing your I would increased appreciate QX and model caution to at sure XX constraint along about you think growth revenue you the earlier that every if the for out But year, last weeks XX% into year. extension by that the times I last you you look ended what X% guidance year constraints, same impact supply the XX% up I for with growth chain by throughout came presented from quarter, the your and to over particular of supply look

Carl Russo

goes what can subscriber which to you are and managing we old to focused demand challenge it the to we’re warehouses, how model Paul, very on would et ship growth have product looks to we see the opposed you respond like now because is where the cetera. back as business, Well, orders is

us I now, end say the from demand is, subscriber go of a standpoint, out you’re we hearing supply, try and right figure high we’re that and the think on to going comfortable at how range there. what So we’re now get

to sort distributors, are warehouses more their going If or because the old-world shipping demand order there had back you’re where should of people out get an subscriber to in what shipping model you you be asking basically is. ahead there were be to you because are that higher going where would revenue of question right, time,

clear not than it’s your right be So XX% the that now. is, answer direct it to us would higher question to

for out continuing We’re things to XXXX. those model

range I I And would going actually, raised side. tell the say today. do a I we But that on at had lot time appreciate that would more it. back as So you, really do to the in supply end high of

than stretching that, harder to sorts actually with, just we’re add to imagine, a pay saying, out effects. just Decommits you as talk Cory of have might somebody to knock-on heard Now times you decommits. all about where you lead have deal thing It’s more. to

that are on XX as a as the their vendor system, that actually supply need vendors as Now with got make And having of other whatever, all a know, effects met more much vendor cascading card component decommits. to challenging. sorts SKU. the planned met you X and you line X you’ve because it commitments not that’s us good has That them or decommits, into make that

corrosive. mean what’s are piece earlier your don’t George sort I to supply that to quite the But of in decommits question. those asked and So pile on implicit chain

Paul Silverstein

indicated they XXX. was Carl, those that X increase. a from in increase to XX% It decommits XXXs decommits case, high

and to decommits those XX You how XX X do us referenced previous of just days, mean that compare sense I Can – to period? give were from compares X or you zero? those Cory they days a are – you decommits. how just previous Or last

Carl Russo

XX-week interesting year we’re when you that up. window pushouts now might remember Yes. of I we hitting say times. would aspect are XX-week And here, showing ago, the lead those had a the times to lead

But there’s decommits. just placed actually meet see so those It that directly, suppliers given not. been answer be to how or them your that increase at we question we’re And our envelope interesting our in will an where we’ve to orders orders.

And so up you and if and you mean? paying a find you’re them. for get does market going what having the That parts to can spot on are that out them, means

days it So put really the all challenges next did orders to in about does create more see We for we in. we it’s XX going the me, more what us. our And for because is certainly are bid.

if deliveries. see component let’s supply the a Now their – meet actually will suppliers

Paul Silverstein

that also it it decommits or is is the Cory, a timing? matter of the quantities? in you’re just seeing Or reduction

Cory Sindelar

not sure Paul. follow I question, that I’m

Paul Silverstein

Well, frame go in to both. they’re if not same the decommits they X, referenced not our the they’re quantities some in the suppliers I and back that the committed committed time delivering to, delivering seeing they both to suppliers, cases, that fact

Cory Sindelar

the it’s above. Yes, all of

Paul Silverstein

right. All

You’re same saying the thing.

Carl Russo

it’s the push a out. quarter, for Say, fourth example,

timing So parts. frame front issue, the it’s not parts deliver. the would they aren’t they It’s in we a that didn’t the right? that time we said So get getting

Cory Sindelar

cases, as getting we’re some well. in And firms the not

Paul Silverstein

it. Got

is in On gross increase Cory, of got that’s be the chain say shift I some significant washed impact continues higher assume software at? letter referenced a to for soft model continues chain the it and being it than costs. be the What to would possible Would supply the margin what supply but XX% – out you you XX.X% then but front, And margin it stockholder I – driven. constraints? by all to to to that shift in selected think the is your adverse

Cory Sindelar

Yes.

down gave So it’s Paul, – were that on that quarter the basis X%. you a have percentage Last where we X% guidance mix. a quarter, and we that point building Clearly, stepped into throw this between you whole of to the kind whole quarter. last

So I’d the range you for quarter. give a fourth for X% this quarter, of to X%

Paul Silverstein

take it pass it. Got question I last X for and X impact. I’ll offline. And call. me. it [indiscernible] And actually, percentage apologize on point I’ll to X

Operator

Genovese Our coming from call WestPark Capital. from next Michael is

Michael Genovese

sticking I guess same at looking topic, way. with it the and another

guys So expanded XXXX, you supply XXX and was by not year-over-year. the chain a basis points of in piece margins birthday cake

to is, at supply What's compare should question difference expect the perspective. the of And you chain XXXX your my from XXXX? in context expand guidance in the points what X X to of of able XXXX? being you versus per we 'XX your like in about XXXX So year the end XXXX, high in think to can and contrast how versus be just

Carl Russo

in do to that's going the how your indicating. I'm P&L environment works, working then was and through the the difficult let's as there balance The and delays it combined. we're take this move The point, frame understanding environment between more sheet. hand and to through over of me to you the getting XXXX have let company is to how price, are So internals per getting the But to Cory committing you easy. in challenge is significant what we price, price, costs

for, it's a cause I So -- between and big mean, delta take want effect. to you long T,

So Cory, yours. all

Cory Sindelar

Let's just start time. with the lead off

to we're we're prices orders at placing that the going next are So year. higher be today. to going date receive to Those

through And costs of P&L was and all the we've year, middle so to are to into committed normalized today run if well by even, the already to XXXX. say, let's chain the equilibrium, supply our it back going

see in to price some the starting we're were now, QX. of increases implemented that Just

component up in through It's immediately going get it fourth It's got inventory. increased delay. get takes a when It's that to the in price show quarter. sold. significant go So doesn't And just to their to the got guys QX, built. go them

to the into XXXX right? a if IPs So going by persists think not is what if that's I we and well the throughout see to and a surcharges even those XXXX got expert you're statement, statement, when see going you're summer. And normalization

Carl Russo

et see concepts but chain So you when cetera. started I The right? in out harder, Right. the asked guidance that Paul And tie me for supply just actually decommits Mike, absolutely the question. QX with the is let that the

is Our robust. demand

to get make what we're going subscriber to need we're demand. sure meeting So go that we

linearity demand. because it's software subscriber the our our see you shaped being and by so coming of And focus model through by platforms on our

flat XX went from in we're At up XX-point up time, the growth range. to So the bracketing QX QX. where same margins

give to you way can question the as answer your that's So the I best well. numerically

Michael Genovese

makes sense. all That Yes.

gross did tell right answered that or more XXX basis to be Is to -- that first or to going less? estimate to that, points consistent as quarter the margin quarter, fourth can Paul So in that you in of Cory XXX was you that there you would now the impact. be

Cory Sindelar

Well, more the less or same.

Michael Genovese

good. And just in other given makes cycle. the strong I everything that described mean, Carl and that with hardware -- my we're Okay. a also business, then sense. question, That's very but subscribers But the very,

tell mix. last? going bigger much, to guess mix going flow cycle. are to think to that been money in you is how then hardware think very imagine subscriber when there's cycle The my where of long of get in get out a beyond hardware we're is will number? the question that do a is have to point We you is And questions. this hardware much we software do stimulus start be chunk strong where you the my really to going And here. there, I the revenue piece can going a a you us to all going Those big

Carl Russo

backwards but work actually I with give I'm sense your a going then question, And the I sales to to not. answer question, customers -- give seeing to that actually Michael and Mike. having the just a value answer back And you me the value we're But from came moment customers. of going on Probably kickoff. maybe our take your example let or to an So want for rest impact you from last our side, Michael, can the we're I'm with the the two, one.

Michael Weening

Yes.

– sorry, realized provider in hardware in, home or went monetized broadband than So never the in that they industry. a just our did the represents the monetization that when has into the a simply experience service of pipe. piece goes past significant opportunity subscriber’s been It

this opportunities can we’re incremental they where services. incremental identify opportunity Now in through ARPU

happy process with XX to and Their customer, within that generally, ARPU targeted and open their had services, first you’re was and to so life product able rate targeted marketing per their they enabling X%, is e-mail And at group understand point, your customers minutes only month not that added ARPU X%, IQ the ProtectIQ, are on ours to that XX% of what XX%. rates campaigns in provide orders the to it. which e-mail form the and we of bandwidth provider e-mail incremental they are which long of their there’s And identified double open of this open hitting of realizing the which controls, X%, example And a home got that on upgraded significant needed more virus e-mails They on list in is Experience customer by broadband the use of pro service protection the they cycle also list. their and a X a be goes that then rate. upsell. would were in they

and and something to through ability massive and the go the customer, the understand that identify the then their enabling a is through that edge. So revenue drive needs upsell marketing cloud we’re

would example is us a has implemented cost more end on be side, implemented, to this customer from and the has who Another end.

Edge Intelligent use Revenue they So Access our EDGE. they use and the

So profitability. data in increase which with that and the they’ve just close more saw we’ve by their to XX%. rates thanks XX those call And centers form goes the our as they then a customers, edge tested times But on massive center the by And importantly, line inside in massive had out operational EDGE XX% call, of call down they the to is on in NPS. seen their drop straight up bottom they seconds, us in a with significant. jump first And of a handle the in do they’re that, home. everything Revenue running

historically for NPS mid-XXs the of an minus NPS in has in now industry is had customer that that X. So an

a opportunities and delighting by monetization opportunity operationally being ahead. efficient subscribers So identifying these your here the huge delight upsell

Carl Russo

I to ARPU but remember, – going want I up but so up were have itself, something, we not one about manifests I’m to your sequentially to come Cory, And But talked the that of question, subscribers. things is ARPU don’t

Cory Sindelar

up They XX% QX were QX. to

Carl Russo

So points the we of you now couple on growing grew have quarter where revenue. a ARPUs sequentially on XX%

have driven that and which build to tie funds, is question spread back broadband see in repurposed starting of years. the next go RDOF ARPA portion your bill, then over see the we’ve now There’s seen These the second. to first, of an we’ll So And which out the now. infrastructure them there bunch the question. seen which hardware being the we’re uplift And infrastructure years, no dollars just over funds, that were third. by

So you’re or correct, sense infrastructure” But of cycle. hardware I for give the the our you subscribers. we work build going “an on are going power to model that’s already see we with a as wanted upgrade to

Operator

question [Operator Our Northland today from Capital. next Savageaux from Instructions] Tim is coming

Tim Savageaux

the bit. around to seeing number lot a this is particular, results. on that we’ve in not I Vegas. although wanted in look of I little on And discussion to of aggregate forward compelling date, Congrats of edge of the necessarily impact. you revenue to of guess, I seen, impact last a what a solid quantification follow kind anecdotes

earlier type deploying is couple on year of But thinking follow not XX trying you made how I that to business I do edge give year, terms providers a interesting XXX are that visibility to EPON, So what doing the is carriers about question side. network of us I’m of I’ll are That’s service not in material that number a yet releases us the and getting you? others that’s more the in up side of you and And guess AXOS. to who you or entire the on imagine provided if so have the universe of one. of that there number can AXOS the up. network any gig, relate for kind side far this talking XXG

Carl Russo

understand. So me Tim, let make sure I

side talking in about going the of network on So the call we Access, what you’re Intelligent upgrades? Access Intelligent the what’s

Tim Savageaux

in relate stuff. subscriber-oriented the Intelligent Edge Basically, revenue to I’m to more talked trying you about to what

subscriber anecdotal XXX just a You talked right? The to looking with for cut subscriber some quantification. happening I’m to focused take it fixed what’s indications of on side the equivalent of these network through car about network EPON, edge. more the more both sort of is focused, all. be for releases, I’m What in along for looking I XXX

Carl Russo

Right.

Okay.

asking. it, So Obviously, I out. going appreciate given give we we were to would it if you’re have

talked Let cloud. directional our before me having folks on at of give you least hundreds some about We’ve pointers.

And that the assume and on number is so the you cloud Revenue can larger. the EDGE

we’re XGS, you and that, customers we are understand number the the customers help our give a NG-PONX did our quantified XGS well, safe. Meanwhile, wondering out way that what’s gig actually GPON you PON of the to are driving with and to is have the sort still is world that Beyond lot with world might of ask, that. if XX in that in not And Verizon. we building do why us quantified

maturing it’s was to that to safe answer and there But form in Revenue what So understand or are XGS. this folks market, EDGE there. that everybody the we another help the on X a are direct your to intended question is more in than there doing were is That was go.

Tim Savageaux

To differentiated model follow on this given of demand. has view a in outstanding. up kind Great you new

you you’re situation the fashion. got you extent the the demand more it QX – either of acceleration the situation demand to to improve? to Did know see you the say delta I for QX? the it in the traditional Did or an in situation metrics kind kind about safe you supply or difficult – not at that of the did So ’XX is of look describe quarter? throughout the talking see in But can

Carl Russo

is Good of the continues And up. answer sort to curve it Tim. question,

are sitting in revenues head. say, RPOs And up my XX% heard just here so you sequentially what part of just Cory are was and

line sequentially. X% X.X%, overall up Our was revenue

we’re to doing of what and as And value definitely greater heard we’re to. we seeing speak you Michael what continue growth the so understand

software. is platforms kickoff, succeed, So on absolutely and our the coming the sales there’s helping I say by mean off I a the excitement that great and customers driven dare of deal

Operator

question Barrington. next Howe from from is coming Our Chris

Chris Howe

on with you Carl, I’ll in already. it supply the chain, explained detail another great question deal here

you that X formed my here. the There happened decommits. So ago. have was I But just weeks mentioned X

will how you – whole, this that at part as the profitable it as that, that these and is are that these have caution? decommits on variability decommits have handle comment excluding And perhaps up pressured, in environment gross margin an gross margin following it’s better in most factors impact are they margin quarter-to-quarter. And environment extra and was look more from But the may gross can First, to having we opportunity just but add of there the you’re a recent on? certain remains quarter? how that, difficult this seems decommit that we the on have a layer

Carl Russo

So want odelling. you’re the don’t to of But I in lost tertiary secondary lot points drill down. there, as Chris, and and get I a data appreciate you questions

our actually it’s they’re itself George. industry, going it harder, I which on service we also subscriber as at to what’s have make question manifests me, much meet to a sure numbers, There’s And supply the albeit very as are to. that and large, how And going getting have there that revenue high not. margins. general that there’s that framed to value pressure that writ are keep no it correlates is are Michael question to best on make And to that you think that folks And proposition high go supply broadband in a I demand figuring the question to a the we’re to are there value watch speak get then in through folks under is the go that statement, There’s proposition. manifests how robust think to it to back level, I it ways. out pay demand. providers I we different that with itself no heard no

good And And is going you’re and constant we very surprise and what subscriber surprise. customers have is to so visibility that about our see into talking Cory this demand.

way asking. other it is. it’s break And I’m in is to you’re if even So want down not because correlate the And actually impossible almost below I’m be misleading. sure the it not meaningful that environment we it to would did, I what would than sure

So does go give obviously, one. me – for I’ll no way but another on you to question, that that there’s tap

Chris Howe

Could that. you context I My up side, that kind revenue follow Can it marketing to And we of understand the and in sales to beyond the seeing Or what how labor and the expectations? of to also supply are market? incoming is your internal see be question, challenged? the – for become describe more helpful. That’s see on headcount continuing this labor we you’re gain this next expect market employees you’re you some Okay. upcoming just further resonates healthy increasing in how tracking just to I to percent a of quarter. wanted

Carl Russo

Michael, the I please? comments we to But don’t challenging doing a question are think why your So very is, it’s you And well. I answer labor market. think add to that,

Michael Weening

Yes.

have. we’re So around the of, we were able culture really which to we award, that win in QX. Glassdoor We won proud another

So I when bonuses of people are come to do end we our challenging the the attracts ourselves which people. year, employees, marketplace like my do great the the they’re have they coming what members this by labor cite and with with trying to their to in we has career. And end, in when that market, it other today, a in company starts out culture, a team building get differentiated the

these And so more the taking again, that diverse our And gets best, and opinions. people in and to we’re ideas improving as our over is and strategy new constantly of environment really make focused different better, we kinds never all bring people. better, on continuing identified we’ve with expand which that is over sure culture these

we get it’s to hard, better same help at go. a great and yes, time, us continue but So people. the culture they attracts And great

want that’s things the you a what ones Calix The are the inside that to who it is is shown who have one after been second is the clear, study really has very happiest. culture that that again, part we exciting. job that are purpose-driven the comes are when of do, to And it people purpose study very, clear

subscribers, smallest simplify OpEx business communities. they and exciting the the are delivering even their lowest and helping their it, service broadband provider, possible. operationalize We and transforming go the are They’re

employee, again, community make that and it their of XXX%, another to And able and they’re basis, which And results happen. Revenue reduction in that capabilities straight use couple broadband us their profitability in be doing services. the XX%, see again success a invest their and quarter With And the our take service so community their can as the rate on a goes of led their on exciting, alarms teammates to in that they, here and premium attracts rolls, on very press which we’re results increase this by A that’s slash you’re side, by which XXX% have the incredibly to subscribers. to everything greater are examples the stories. delight EDGE if customer led which shared mission network, can they new noisy providers that service that evidenced go-to-market they daily to driving massively incremental who broadband XX% customer in and the truck so troublesome in by that on margin can a simplify change and WiFi allows when to margin’ a to the customer in new and to had an their who we that with in they a XX% – great strategy of reinvest have their them cash you the we’re releases form the form services helping increase is employees

Carl Russo

Thanks, Michael.

Operator

Koontz question Company. Our Needham & from from Ryan next coming is

Ryan Koontz

impressive and customers. the With results there, outlook transition, great where now drivers understand process maybe us platforms? have to or that move some But looks what transition range model you here. and the the are legacy and for and for customers some to from over in platform certainly the color regards the can I transition numbers Some you like give to quantitative we

Carl Russo

Yes.

you question give actually, I Ryan, you So are asking a answer numerical for. that a will

All So in business, new Actually the than -- about internally call know, we crossover bookings. business back greater point, was in we we bookings XX% you it -- what talked new revenue. of as but over crossed our where are the QX, Platform QX, XX-XX our

our on of now, go-forward basis Does platform business. XX% So the more is than that on a help? revenue revenue

Ryan Koontz

peers pricing environment as markets that task of in Sure you pricing I improving little And on But Huawei any look out. a broader, at markets, Are pressure? starting if is does. side? kind relief all your the networking to we've any has in focused on impact know you of are comments know in very moved you're the couple you hand. where I your you your had a pricing at seeing look pricing in at see the front,

Carl Russo

heard of we're Michael to. Having any space question. with value and great said our aware, price not price as adjacent the the that aligned spaces in raised way. in Well, that we only We're in think you I speak customers We're that, to in has creation, this that are date. competitors company not

the pressure aware a standpoint, is it from So But is pricing something we not chasing as price-based a that typically. that. geopolitical of you are opportunity buyer know, replacement because we're

So not you're asking. in the way

Ryan Koontz

Sure.

you applications are there terms accounts the different in the Okay. NG-PONX. of And front. their of just where Verizon penetrating quick in kind follow-up Any with geographically or updates a on

Carl Russo

building that's continue percentage in their announcements network their X They're built coverage the and all Edge intent make fiber U.S., to They on and on Intelligent infrastructure. their network.

that customer fine. value doing from as best a do. know, not drive just But continue So you value can I to And proposition but necessarily the high the be piece. we standpoint, would they're XX%

Operator

Instructions] Schwab question Christian is from Craig-Hallum. Our coming today from next [Operator

Christian Schwab

weeks But time you fixed when know few that’s Broadcom for for have the of you everybody. decommits be at to fruition visibility about pushouts the on kind So as and a you? talking lack this that, situation chips is will frame think guys guys I last to from in they do of look something come in the

Carl Russo

to market. going going any speak the not you to vendor. given isn’t This year. give continue throughout fixed I’m in to that just the person that sense overall this the know for I’ll is things going of There to is the Well, a be year. I

XXXX, XXXX, happens we’re this the clear. the going be is in but X this Beyond that, through to I mean and year, beyond on persist happens working in maybe next to quarter, what quarter

Christian Schwab

to a we’re supply Day going forthcoming, I person. for? to have not aggregate don’t getting be tell I guess margin excited exciting steal But you weeks. more together to return an an happen and idea the I be don’t nitpicky, what’s a But rational few want going thunder of if about to you’re Right. have which mean of in but us all which of we in Analyst a would can structure. us

Carl Russo

as build from medium you types, service with to on serve continue customers et and residential, think more the we it enterprise, which they about, is business, heard talking our cetera. their continue broadband valuable I So help examples to providers Michael that much of all subscribers was value them that the work small, proposition

we’re excited Vegas. the at sure the excited So about. I’m that’s end of day in you’ll what be

Operator

[Operator Instructions] from is a from Silverstein Our next Paul Cowen. follow-up question

Paul Silverstein

if answer I don't apologize them. to you already answered you've want if

So CARES quantification up can still system into Carl, in. step level Act revenue. impact be would get considerations. about of this any started massive new $X as the of Act infrastructure wrong, me you quantification that a I there timing you kicking broadband couple -- infrastructure of year Is government with there's to there -- that as should you're you bill, a that funds, that. last get allowing for much the CARES point amount greater any cetera, up, that But to probably they're correct to back visibility I I'm going tied Do going infrastructure bill, year, that the this if through 'XX, of revenue have that see wind from started as big be it the the have see the impact wash 'XX, can to should meaningful greater in going to think said, yet. provide? and exports see et to to years

Carl Russo

excess from think -- allowed becoming we're which I point, obviously it's about, your and meaningful we've to the which repurpose But were in states ARPA built from Mike, funds, talked broadband. the XXXX not for big [indiscernible] of actually that. year. much after the what's this to then first, obviously, expect through been to actually that we And flowed their some RDOF lower. has see funds. repurpose and That's initially

if look think them event I we'll curves time, go So you 'XX, some over to see big is I this and shape of start 'XX at 'XX, form. And the in it spread a 'XX, those think way of a 'XX miss like anything in for XXXX, material it's to But I or make your 'XX. and it's want in just sure. in not not don't meaningful is through -- set what I sure flowing it expectations. out

Paul Silverstein

appreciate I that.

quantification, or On customer the you drive you take-up, go quantification greater there testimonials, the quality without I other have cited, provide? appreciate given you up, that customers. take already don't saying you've the to -- is whole these but driving couple as could application qualitative again, want does it a dramatic but increasingly Is is that software give that any from any

Carl Russo

I Well, through Michael them. a you heard go qualitative, of mean if number

go point. at more won't this I So through

Paul Silverstein

Well, beyond.

Carl Russo

Sorry.

Paul Silverstein

Beyond and, Go response. ahead. let -- again, it let your me is

Carl Russo

Well, mean beyond anecdote, you numerically?

Paul Silverstein

but given shift. the Well, even is broad acceleration a I numerically, customers standpoint, better was it hoping for not that you're numerically, in number of seeing from

Carl Russo

Yes.

of Let we're sense me knows the to when the over I RPO what numbers think starting see. say, I mean, give starting to do you starting X from see. the sort a it that's say best to quarters. And part Cory I for by to last way

it quarter What What's what this the quarter? last So was before? quarter? was it

Cory Sindelar

Yes.

$XXX at looking we're QX, million, right? for So

Carl Russo

$XXX million.

Cory Sindelar

QX $XXX is is million. QX And $XX million. In

Carl Russo

$XXX So million, million. $XX million, $XXX

to getting a for new that's multiyear prepared look you're and and acceleration best customers. comments, if Very new the the you you at on point the that seeing, customers the number new sense can count, my clearly, seeing we're gives platforms. to. that continued what the point our forward-looking high are So I of go obviously, we're it's of And a customer all -- you

point, numbers I So give those you are Paul. at best can this the

Paul Silverstein

answered. are else not appreciate to last and standpoint. point to basis everybody challenging environment and this on at historical time XXX try and if improvement But All you didn't year me, and correct? right. asked I from it's X you and gross that year, was very drive, are But for supply margin One commenting XXX this for a chain apologize the already for state a I it facing you you'll the that all

Carl Russo

All we did QX. give Correct. was for guidance

Paul Silverstein

outlook trust you All to into the right. year want don't is And the margins. get I for what

Cory Sindelar

comments, given the And the visibility. get on Vegas we chain quarter. Obviously, next together in on we we've more commentary and as give obviously, challenges, guidance supply have we'll

Paul Silverstein

for broke shift. pace Understood. get One the this last Q that on bookings you of us All threshold revenue at quarter, to XX-XX the a Platform question. was Platform Can trying relative XX-XX. 'XX I'm your sense to All on crossing revenue what time tell to a

Cory Sindelar

for Obviously, asking Paul, thanks that.

given milestones to these won't you. out. than just So you give may I and answer be but that's that frustrating, we've Thank what other that

Operator

I'd the closing any or end like session. to question-and-answer Tom comments. over floor We for the back reach our further turn of to

Thomas Dinges

for for Events Day This be today. us Thank number dates about the the Goodbye calix.com. investor & Once will the our Wynn times Relations management leadership and now. Information you, public Investor presentations Resort first your call section joining concludes on of quarter thank during posted in including of 'XX, you participate and conference on the to Presentations webcast Calix our in of operator. will Las on of for a these and meetings webcast including the call. again, this everyone events, interest Investor of page at in Calix Vegas. for

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