0001193125-11-193657.txt : 20110721 0001193125-11-193657.hdr.sgml : 20110721 20110721161627 ACCESSION NUMBER: 0001193125-11-193657 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20110721 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110721 DATE AS OF CHANGE: 20110721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALIX, INC CENTRAL INDEX KEY: 0001406666 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 680438710 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34674 FILM NUMBER: 11980050 BUSINESS ADDRESS: STREET 1: 1035 N MCDOWELL BLVD CITY: PETALUMA STATE: CA ZIP: 95954 BUSINESS PHONE: 707-766-3000 MAIL ADDRESS: STREET 1: 1035 N MCDOWELL BLVD CITY: PETALUMA STATE: CA ZIP: 95954 FORMER COMPANY: FORMER CONFORMED NAME: CALIX NETWORKS INC DATE OF NAME CHANGE: 20070713 8-K 1 d8k.htm FORM 8-K Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 21, 2011

 

 

CALIX, INC.

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware   001-34674   68-0438710

(State or other jurisdiction

of incorporation)

  

(Commission

File No.)

 

(I.R.S. Employer

Identification No.)

 

1035 N. McDowell Boulevard, Petaluma, California   94954
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (707) 766-3000

Not Applicable

(Former name or former address if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02. Results of Operations and Financial Condition.

On July 21, 2011, Calix, Inc. (the “Company”) publicly disseminated a press release announcing financial results for the second quarter ended June 25, 2011.

The foregoing description is qualified in its entirety by reference to the Company’s press release, dated July 21, 2011, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit

No.

   

Description

99.1    Press Release dated July 21, 2011 announcing financial results of the Company.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 21, 2011     CALIX, INC.
    By:  

/s/ Michael Ashby

      Michael Ashby
      Chief Financial Officer

INDEX TO EXHIBITS

 

Exhibit

No.

   

Description

99.1    Press Release dated July 21, 2011 announcing financial results of the Company.
 EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

Calix Reports Second Quarter 2011 Financial Results

PETALUMA, CA—July 21, 2011—Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the second quarter ended June 25, 2011. Revenue for the second quarter of 2011 was $98.0 million, an increase of 36.7% compared to $71.7 million for the second quarter of 2010.

“Calix set a new revenue record in Q2 as we built upon favorable secular trends affecting our markets,” said Carl Russo, president and CEO of Calix. “In our first full quarter of operations after closing our acquisition, we executed well across all areas of the business, and reported results that were ahead of expectations.”

Non-GAAP net income for the second quarter of 2011 was $7.8 million, or $0.16 per fully diluted share, an increase of 40.8% compared to non-GAAP net income of $5.5 million, or $0.14 per fully diluted share, for the second quarter of 2010. A reconciliation of GAAP and non-GAAP results is included as part of this release.

GAAP net loss for the second quarter of 2011 was $17.6 million, or $(0.38) per basic and diluted share, compared to a GAAP net loss of $3.2 million, or $(0.09) per basic and diluted share for the second quarter of 2010. A reconciliation of our Q2 2011 operating results from non-GAAP to GAAP is provided below:

 

     Non-GAAP      Merger
Related and
Other
Expenses		     Stock-Based
Compensation		     Amortization
of  Intangible
Assets		     GAAP  

Revenue

    $ 97,959       $ —        $ —        $ —        $ 97,959   

Cost of revenue

      54,568         9,709        331        3,188        67,796   
                                         

Gross profit

      43,391         (9,709 )      (331 )      (3,188 )      30,163   

Operating expense

      35,504         4,408        4,993        2,795        47,700   
                                         

Operating income (loss)

      7,887         (14,117 )      (5,324 )      (5,983 )      (17,537 ) 

Other income/(expense), net

      5         —          —          —          5   
                                         

Income (loss) before taxes

      7,892         (14,117 )      (5,324 )      (5,983 )      (17,532 ) 

Provision for income taxes

      114         —          —          —          114   
                                         

Net income (loss)

    $ 7,778       $ (14,117 )    $ (5,324 )    $ (5,983 )    $ (17,646 ) 
                                         

Weighted average basic and diluted shares used to compute GAAP net loss per common share

               46,050   
                 

Weighted average diluted shares used to compute non-GAAP net income per common share

      48,139         48,139        48,139        48,139     
                                   

GAAP net loss per common share

             $ (0.38 ) 
                 

Non-GAAP net income (loss) per share

    $ 0.16       $ (0.29 )    $ (0.11 )    $ (0.12 )   
                                   

Press Release    Page  2

 

Conference Call

In conjunction with this announcement, Calix will host a conference call at 1:30 p.m. PDT (4:30 p.m. EDT) today to discuss its second quarter 2011 financial results. A live audio webcast and replay of the call will be available in the Investor Relations section of the Calix web site at http://investor-relations.calix.com.

Live call access information:

 

  •  

Dial-in number: (800) 320-2978 (U.S.) or (617) 614-4923 (outside the U.S.)

 

  •  

Passcode: 80168277

Replay call access information:

 

  •  

Replay call dial-in: (888) 286-8010 (U.S.) or (617) 801-6888 (outside the U.S.)

 

  •  

Passcode: 82555257

The conference call and webcast will include forward looking information.

About Calix

Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enable communications service providers worldwide to be the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com.

Use of Non-GAAP Financial Information

The Company uses certain non-GAAP financial measures in this press release to supplement its consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP measures include non-GAAP net income and non-GAAP basic and diluted income per share. These non-GAAP measures are provided to enhance the reader’s understanding of the Company’s operating performance as they primarily exclude certain non-cash charges for stock-based compensation and amortization of acquisition-related intangible assets, and non-recurring merger-related and other expenses, which the Company believes are not indicative of its core operating results. Merger-related and other expenses largely include the charge resulting from the required revaluation of Occam inventory to its estimated fair value, legal and professional expenses, and severance and integration-related expenses and inventory-related charges associated with our merger with Occam and to a lesser extent the settlement of litigation. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company’s ongoing business performance and management uses these non-GAAP measures to evaluate financial results and to establish operational goals. The presentation of these non-GAAP measures is not meant to be a substitute for results presented in accordance with GAAP, but rather should be evaluated in conjunction with these results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in the financial schedules portion of this press release. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Press Release    Page  3

 

Investor Relations Contact:    Press Contact:
Carolyn Bass    Catherine Koo
415-445-3232    415-992-4400
Carolyn.Bass@Calix.com    calix@lewispr.com

Press Release    Page  4

 

Condensed Consolidated Statements of Operations

(in thousands)

 

     Three Months Ended     Six Months Ended  
     June 25,
2011		     June 26,
2010		     June 25,
2011		     June 26,
2010		  
     (unaudited)     (unaudited)  

Revenue

    $ 97,959      $ 71,653      $ 169,429      $ 119,856   

Cost of revenue:

         

Products and services(1)

      54,899        41,855        94,207        72,026   

Merger-related expenses

      9,709        —          19,966        —     

Amortization of intangible assets

      3,188        1,360        4,704        2,720   
                                

Total cost of revenue

      67,796        43,215        118,877        74,746   
                                

Gross profit

      30,163        28,438        50,552        45,110   

Operating expenses:

         

Research and development(1)

      18,584        13,086        33,623        24,933   

Sales and marketing(1)

      14,172        10,184        26,238        18,606   

General and administrative(1)

      6,667        7,423        15,975        12,171   

Merger-related and other expenses(1)

      5,482        —          11,523        —     

Amortization of intangible assets

      2,795        185        3,464        370   
                                

Total operating expenses

      47,700        30,878        90,823        56,080   
                                

Loss from operations

      (17,537 )      (2,440 )      (40,271 )      (10,970 ) 

Other income (expense):

         

Interest income

      26        103        69        177   

Interest expense

      (45 )      (620 )      (91 )      (1,093 ) 

Change in fair value of preferred stock warrants

      —          —          —          (173 ) 

Other income

      24        (2 )      29        9   
                                

Loss before provision for income taxes

      (17,532 )      (2,959 )      (40,264 )      (12,050 ) 

Provision for income taxes

      114        243        138        414   
                                

Net loss

      (17,646 )      (3,202 )      (40,402 )      (12,464 ) 

Preferred stock dividends

      —          —          —          900   
                                

Net loss attributable to common stockholders

    $ (17,646 )    $ (3,202 )    $ (40,402 )    $ (13,364 ) 
                                

Net loss per common share:

         

Basic and diluted

    $ (0.38 )    $ (0.09 )    $ (0.92 )    $ (0.63 ) 
                                

Pro forma basic and diluted

    $ (0.38 )    $ (0.09 )    $ (0.92 )    $ (0.36 ) 
                                

Weighted average number of shares used to compute net loss per common share:

         

Basic and diluted

      46,050        37,212        43,697        21,305   
                                

Pro forma basic and diluted (2)

      46,050        37,212        43,697        34,614   
                                

 

(1)    Includes stock-based compensation as follows:

     

 

     Three Months Ended      Six Months Ended  
     June 25,
2011		      June 26,
2010		      June 25,
2011		      June 26,
2010		  
     (unaudited)      (unaudited)  

Cost of revenue

    $ 331       $ 484         835         624   

Research and development

      1,233         1,686         2,875         2,256   

Sales and marketing

      831         1,247         2,129         1,681   

General and administrative

      1,855         3,764         6,438         5,427   

Merger-related

      1,074         —           1,164         —     
                                   
   $ 5,324       $ 7,181       $ 13,441       $ 9,988   
                                   

 

(2) For the six months ended June 26, 2010, includes outstanding common shares and common shares resulting from the assumed conversion of preferred shares as if conversion occurred at the beginning of the first quarter of 2010.

Press Release    Page  5

 

Reconciliation of GAAP to Non-GAAP Results

(Unaudited, in thousands except per share data)

 

     Three Months Ended     Six Months Ended  
     June 25,
2011		     June 26,
2010		     June 25,
2011		     June 26,
2010		  

GAAP net loss

    $ (17,646 )    $ (3,202 )    $ (40,402 )    $ (13,364 ) 

Adjustments to reconcile GAAP net loss to non-GAAP net income (loss):

         

Stock-based compensation

      4,250        7,181        12,277        9,988   

Stock-based compensation (MRE)

      1,074        —          1,164        —     

Amortization of intangible assets

      5,983        1,545        8,168        3,090   

Merger-related expenses (COGS)

      9,709        —          19,966        —     

Merger-related and other expenses (OPEX)

      4,408        —          10,359        —     

Change in fair value of preferred stock warrants

      —          —          —          173   

Preferred stock dividends

      —          —          —          900   
                                

Non-GAAP net income

    $ 7,778      $ 5,524      $ 11,532      $ 787   
                                

Non-GAAP net income per common share

         

Basic

    $ 0.17      $ 0.15      $ 0.26      $ 0.02   
                                

Diluted

    $ 0.16      $ 0.14      $ 0.25      $ 0.02   
                                

Weighted average shares used to compute non-GAAP net income per common share - Basic (1)

      46,050        37,212        43,697        34,614   
                                

Weighted average shares used to compute non-GAAP net income per common share - Diluted (1)(2)

      48,139        39,413        46,008        36,409   
                                

 

(1) For the six months ended June 26, 2010, includes outstanding common shares and common shares resulting from the the assumed conversion of preferred shares as if conversion occurred at the beginning of the first quarter of 2010.
(2) Includes the dilutive effect of oustanding stock options, warrants and restricted stock units for all periods presented.

 

     Three Months Ended     Six Months Ended  
     June 25,
2011		     June 26,
2010		     June 25,
2011		     June 26,
2010		  

GAAP gross profit and gross margin

    $ 30,163         30.8 %    $ 28,438         39.7 %    $ 50,552         29.8 %    $ 45,110         37.6 % 

Adjustments to reconcile GAAP gross profit and gross margin to non-GAAP gross profit and gross margin:

                     

Stock-based compensation

      331           484           835           624      

Amortization of intangible assets

      3,188           1,360           4,704           2,720      

Merger-related expenses

      9,709           —             19,966           —        
                                            

Non-GAAP gross profit and gross margin

    $ 43,391         44.3 %    $ 30,282         42.3 %    $ 76,057         44.9 %    $ 48,454         40.4 % 
                                            

Press Release    Page  6

 

Condensed Consolidated Balance Sheets

(In thousands)

 

     June 25,
2011		     December 31,
2010		  
     (unaudited)        

ASSETS

     

Current Assets:

     

Cash and cash equivalents

    $ 18,660      $ 66,304   

Marketable securities

      8,911        32,020   

Restricted cash

      1,054        —     

Accounts receivable, net

      57,940        43,377   

Inventory

      38,489        24,557   

Deferred cost of revenue

      10,835        7,771   

Prepaid and other current assets

      5,340        3,245   
                

Total current assets

      141,229        177,274   

Property and equipment, net

      18,206        11,815   

Goodwill

      116,175        65,576   

Intangible assets, net

      90,001        515   

Other assets

      2,381        2,376   
                

Total assets

    $ 367,992      $ 257,556   
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

    $ 10,932      $ 10,268   

Accrued liabilities

      39,629        25,987   

Deferred revenue

      23,081        14,062   
                

Total current liabilities

      73,642        50,317   

Long-term portion of deferred revenue

      11,970        10,985   

Other long term liabilities

      1,588        951   
                

Total liabilities

      87,200        62,253   
                

Stockholders’ equity:

     

Common stock

      1,167        968   

Additional paid-in capital

      731,617        605,939   

Other comprehensive income

      45        31   

Accumulated deficit

      (452,037 )      (411,635 ) 
                

Total stockholders’ equity

      280,792        195,303   
                

Total liabilities and stockholders’ equity

    $ 367,992      $ 257,556   
                

Press Release    Page  7

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

     Six Months Ended  
     June 25,
2011		     June 26,
2010		  
     (unaudited)  

Operating activities

     

Net loss

    $ (40,402 )    $ (12,464 ) 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

     

Amortization of premiums relating to available-for-sale securities

      184        415   

Loss on retirement of property and equipment

      1,621        —     

Depreciation and amortization

      3,859        2,381   

Amortization of intangible assets

      8,168        3,090   

Revaluation of warrant liability

      —          173   

Stock-based compensation

      13,441        9,988   

Changes in operating assets and liabilities:

     

Change in restricted cash

      —          629   

Accounts receivable, net

      2,290        11,452   

Inventory

      15,297        (6,387 ) 

Deferred cost of revenue

      (3,064 )      622   

Prepaids and other assets

      (1,246 )      858   

Accounts payable

      (11,136 )      (10,326 ) 

Accrued liabilities

      3,029        (2,119 ) 

Deferred Revenue

      9,138        1,358   

Other long-term liabilities

      (253 )      130   
                

Net cash provided by (used in) operating activities

      926        (200 ) 
                

Investing activities

     

Acquisition of property and equipment

      (4,508 )      (2,906 ) 

Acquisition of Occam Networks, net of cash assumed

      (60,809 )      —     

Purchase of marketable securities

      —          (56,567 ) 

Sales of marketable securities

      —          15,208   

Maturities of marketable securities

      22,905        —     
                

Net cash used in investing activities

      (42,412 )      (44,265 ) 
                

Financing activities

     

Proceeds from exercise of stock options and other

      667        72   

Proceeds from employee stock purchase plan

      2,062        —     

Taxes withheld upon vesting of restricted stock units

      (8,921 )      —     

Principal payment on loans

      —          (20,000 ) 

Proceeds from initial public offering of common stock, net of issuance costs

      —          57,293   
                

Net cash provided by (used in) financing activities

      (6,192 )      37,365   
                

Effect of exchange rate changes on cash and cash equivalents

      34        —     

Net decrease in cash and cash equivalents

      (47,644 )      (7,100 ) 

Cash and cash equivalents at beginning of period

      66,304        31,821   
                

Cash and cash equivalents at end of period

    $ 18,660      $ 24,721   
                
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