0001406666-15-000002.txt : 20150203 0001406666-15-000002.hdr.sgml : 20150203 20150203161256 ACCESSION NUMBER: 0001406666-15-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150203 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150203 DATE AS OF CHANGE: 20150203 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: 15571230 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 a8-kearningsrelease14q4.htm 8-K 8-K Earnings Release 14Q4


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): February 3, 2015
 
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 February 3, 2015, Calix, Inc. (the “Company”) publicly disseminated a press release announcing financial results for the fourth quarter ended December 31, 2014. The foregoing description is qualified in its entirety by reference to the Company’s press release, dated February 3, 2015, 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 February 3, 2015 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:
February 3, 2015
 
 
 
 
CALIX, INC.
 
 
 
 
 
 
 
 
 
 
 
By:
 
/s/ William J. Atkins
 
 
 
 
 
 
 
 
William J. Atkins
 
 
 
 
 
 
 
 
Chief Financial Officer




INDEX TO EXHIBITS
 
Exhibit No.
  
Description
 
 
99.1
  
Press Release dated February 3, 2015 announcing financial results of the Company.


 EX-99 2 ex991earningsrelease14q4.htm EXHIBIT 99 Ex 99.1 Earnings Release 14Q4




Exhibit 99.1
Calix Reports Fourth Quarter 2014 Financial Results

PETALUMA, CA – February 3, 2015 – Calix, Inc. (NYSE: CALX) today announced unaudited financial results for the fourth quarter ended December 31, 2014. Revenue for the fourth quarter of 2014 was $111.6 million, an increase of 18.8% compared to $94.0 million for the fourth quarter of 2013 and an increase of 5.5% on a sequential basis, compared to $105.8 million for the third quarter of 2014.
“In addition to achieving new, higher revenue levels for the quarter and for the year, we continued to execute on our Unified Access vision," said Carl Russo, Calix president and CEO. "Our new fiber-enabled GigaCenters are off to a great start with orders from more than 100 service provider customers since the product launch, strengthening our leadership position in the accelerating gigabit broadband access market,” added Russo.
The company’s non-GAAP net income for the fourth quarter of 2014 was $6.8 million, or $0.13 per fully diluted share, compared to a non-GAAP net income of $1.5 million, or $0.03 per fully diluted share, for the fourth quarter of 2013. A reconciliation of GAAP and non-GAAP results is included as part of this release.
The GAAP net loss for the fourth quarter of 2014 was $1.7 million, or $(0.03) per basic and diluted share, compared to a GAAP net loss of $6.5 million, or $(0.13) per basic and diluted share, for the fourth quarter of 2013. A reconciliation of our fourth quarter 2014 operating results from non-GAAP to GAAP is provided below:


1
                                       
Calix Press Release
 
Page 2 


Calix, Inc.
(Unaudited, in thousands, except per share data)
Three Months Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Non-GAAP
 
Stock-Based Compensation
 
Amortization of Intangible Assets
 
GAAP
Revenue
 
$
111,633

 
$
—

 
$
—

 
$
111,633

Cost of revenue
 
57,898

 
206

 
2,088

 
60,192

Gross profit
 
53,735

 
(206
)

(2,088
)

51,441

Gross margin
 
48.1
%
 
(0.2
)%
 
(1.9
)%
 
46.1
%
Operating expenses
 
46,797

 
3,692

 
2,552

 
53,041

Operating income (loss)
 
6,938

 
(3,898
)
 
(4,640
)
 
(1,600
)
Interest and other income (expense), net
 
118

 
—

 
—

 
118

Income (loss) before taxes
 
7,056

 
(3,898
)
 
(4,640
)
 
(1,482
)
Provision for income taxes
 
253

 
—

 
—

 
253

Net income (loss)
 
$
6,803

 
$
(3,898
)

$
(4,640
)

$
(1,735
)
Weighted average diluted shares used to compute
 
 
 
 
 
 
 
 
non-GAAP net income (loss) per common share
 
52,047

 
52,047

 
52,047

 
 
Non-GAAP net income (loss) per diluted share
 
$
0.13

 
$
(0.07
)
 
$
(0.09
)
 
 
Weighted average basic and diluted shares used to
 
 
 
 
 
 
 
 
compute GAAP net loss per common share
 
 
 
 
 
 
 
51,300

GAAP net loss per share
 
 
 
 
 
 
 
$
(0.03
)

                                       
Calix Press Release
 
Page 3 


Conference Call
In conjunction with this announcement, Calix will host a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) today to discuss its fourth quarter 2014 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: (877) 407-4019 (U.S.) or (201) 689-8337 (outside the U.S.)
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 enables communications service providers worldwide to transform their copper- and fiber-based networks and become the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com. For more information about gigabit networks, visit www.calix.com/gigabit/.
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 (loss) and non-GAAP basic and diluted income (loss) 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 acquisition-related and other expenses, which the Company believes are not indicative of its core operating results. 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 those GAAP results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in 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.

                                       
Calix Press Release
 
Page 4 


Calix, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Twelve Months Ended
 
 
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
 
 
2014
 
2013
 
2014
 
2013
Revenue
 
$
111,633

 
$
94,003

 
$
401,227

 
$
382,618

Cost of revenue:
 
 
 
 
 
 
 
 
 
Products and services (1)
 
58,104

 
51,868

 
215,085

 
203,191

 
Amortization of intangible assets
 
2,088

 
2,088

 
8,353

 
8,353

 
 
Total cost of revenue
 
60,192

 
53,956

 
223,438

 
211,544

Gross profit
 
51,441

 
40,047

 
177,789

 
171,074

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development (1)
 
21,207

 
19,316

 
80,311

 
79,299

 
Sales and marketing (1)
 
21,721

 
18,583

 
76,283

 
68,075

 
General and administrative (1)
 
7,561

 
7,652

 
30,118

 
31,945

 
Amortization of intangible assets
 
2,552

 
2,552

 
10,208

 
10,208

 
 
Total operating expenses
 
53,041

 
48,103

 
196,920

 
189,527

Loss from operations
 
(1,600
)
 
(8,056
)
 
(19,131
)
 
(18,453
)
Interest and other income (expense), net:
 
 
 
 
 
 
 
 
 
Interest income
 
643

 
3

 
729

 
7

 
Interest expense
 
(632
)
 
(73
)
 
(806
)
 
(167
)
 
Utilization of inventory credit
 
—

 
1,651

 
—

 
1,651

 
Other income (expense), net
 
107

 
1

 
228

 
(317
)
 
 
Total interest and other income (expense), net
 
118

 
1,582

 
151

 
1,174

Loss before provision for income taxes
 
(1,482
)
 
(6,474
)
 
(18,980
)
 
(17,279
)
Provision for (benefit from) income taxes
 
253

 
(21
)
 
581

 
(14
)
Net loss
 
$
(1,735
)
 
$
(6,453
)
 
$
(19,561
)
 
$
(17,265
)
Net loss per common share:
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
$
(0.03
)

$
(0.13
)

$
(0.38
)
 
$
(0.35
)
Weighted average number of shares used to compute
 
 
 
 
 
 
 
 
 
net loss per common share:
 
 
 
 
 
 
 
 
 
 
Basic and diluted
 
51,300

 
49,892

 
50,808

 
49,419

 
 
 
 
 
 
 
 
 
 
 
(1) 
Includes stock-based compensation as follows:
 
 
 
 
 
Cost of revenue
 
$
206

 
$
378

 
$
1,120

 
$
1,468

 
Research and development
 
1,363

 
1,231

 
5,056

 
4,896

 
Sales and marketing
 
1,455

 
1,439

 
5,601

 
5,577

 
General and administrative
 
874

 
1,908

 
4,240

 
7,980

 
 
 
 
$
3,898

 
$
4,956

 
$
16,017

 
$
19,921



                                       
Calix Press Release
 
Page 5 


Calix, Inc.
Reconciliation of GAAP to Non-GAAP Results
(Unaudited, in thousands, except per share data)
 
 
 
 
 
 
 
 
 

 
Three Months Ended
 
Twelve Months Ended

 
December 31,
 
December 31,
 
December 31,
 
December 31,

 
2014
 
2013
 
2014
 
2013
GAAP net loss income
 
$
(1,735
)
 
$
(6,453
)
 
$
(19,561
)
 
$
(17,265
)
Adjustments to reconcile GAAP net loss to
 
 
 
 
 
 
 
 
non-GAAP net income:
 
 
 
 
 
 
 
 
Stock-based compensation
 
3,898

 
4,956

 
16,017

 
19,921

Amortization of intangible assets
 
4,640

 
4,640

 
18,561

 
18,561

Utilization of inventory credit
 
—

 
(1,651
)
 
—

 
(1,651
)
Non-GAAP net income
 
$
6,803

 
$
1,492

 
$
15,017

 
$
19,566

Non-GAAP net income per common share:
 
 
 
 
 
 
 
 
Basic
 
$
0.13

 
$
0.03

 
$
0.30


$
0.40

Diluted
 
$
0.13

 
$
0.03

 
$
0.29


$
0.39

Weighted average shares used to compute non-GAAP
 

 


 


 


net income per common share - basic
 
51,300

 
49,892

 
50,808

 
49,419

Weighted average shares used to compute non-GAAP
 


 


 


 


net income per common share - diluted (1)
 
52,047

 
51,068

 
51,450

 
50,437

 
 
 
 
 
 
 
 
 
(1)  Includes the dilutive effect of outstanding stock options, restricted stock units and ESPP.




                                       
Calix Press Release
 
Page 6 


Calix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands)
 
 
 
 
 
 
 
December 31,
 
December 31,
 
 
2014
 
2013
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
48,829

 
$
82,747

Marketable securities
 
62,850

 
—

Restricted cash
 
295

 
295

Accounts receivable, net
 
30,744

 
43,520

Inventory
 
46,753

 
51,071

Deferred cost of revenue
 
5,080

 
21,076

Prepaid expenses and other current assets
 
12,910

 
5,757

 Total current assets
 
207,461

 
204,466

Property and equipment, net
 
20,144

 
17,473

Goodwill
 
116,175

 
116,175

Intangible assets, net
 
25,179

 
43,740

Other assets
 
1,236

 
1,745

 Total assets
 
$
370,195

 
$
383,599

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 
 
 
 
Accounts payable
 
$
23,629

 
$
23,163

Accrued liabilities
 
38,164

 
32,075

Deferred revenue
 
12,722

 
34,862

Total current liabilities
 
74,515

 
90,100

Long-term portion of deferred revenue
 
19,393

 
18,431

Other long-term liabilities
 
2,443

 
1,145

Total liabilities
 
96,351

 
109,676

Stockholders' equity:
 
 
 
 
Common stock
 
1,291

 
1,256

Additional paid-in capital
 
801,810

 
782,253

Accumulated other comprehensive income
 
80

 
190

Accumulated deficit
 
(529,337
)
 
(509,776
)
Total stockholders' equity
 
273,844

 
273,923

Total liabilities and stockholders' equity
 
$
370,195

 
$
383,599



                                       
Calix Press Release
 
Page 7 


Calix, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 
 
 
 
 
 
 
Twelve Months Ended
 
 
December 31,
 
December 31,
 
 
2014
 
2013
Operating activities:
 
 
 
 
Net loss
 
$
(19,561
)
 
$
(17,265
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
9,263

 
10,181

Loss on retirement of property and equipment
 
50

 
569

Amortization of intangible assets
 
18,561

 
18,561

Amortization of premiums related to available-for-sale securities
 
574

 
—

Gain on sale of available-for-sale securities
 
(1
)
 
—

Stock-based compensation
 
16,017

 
19,921

Utilization of inventory credit
 
—

 
(1,651
)
Changes in operating assets and liabilities:
 
 
 
 
Restricted cash
 
—

 
(295
)
Accounts receivable, net
 
12,776

 
15,999

Inventory
 
4,319

 
(6,138
)
Deferred cost of revenue
 
15,996

 
1

Prepaid expenses and other assets
 
(5,881
)
 
535

Accounts payable
 
467

 
6,359

Accrued liabilities
 
6,160

 
(4,217
)
Deferred revenue
 
(21,178
)
 
(1,804
)
Other long-term liabilities
 
513

 
62

Net cash provided by operating activities
 
38,075

 
40,818

Investing activities:
 
 
 
 
Purchase of property and equipment
 
(11,961
)
 
(6,987
)
Purchase of marketable securities
 
(67,698
)
 
—

Proceeds from sale of marketable securities
 
4,215

 
—

Net cash used in investing activities
 
(75,444
)
 
(6,987
)
Financing activities:
 
 
 
 
Proceeds from exercise of stock options
 
1,668

 
747

Proceeds from employee stock purchase plan
 
4,627

 
4,828

Taxes paid for awards vested under equity incentive plans
 
(2,720
)
 
(3,441
)
Payments for debt issuance costs
 
—

 
(316
)
Net cash provided by financing activities
 
3,575

 
1,818

Effect of exchange rate changes on cash and cash equivalents
 
(124
)
 
103

Net (decrease) increase in cash and cash equivalents
 
(33,918
)
 
35,752

Cash and cash equivalents at beginning of period
 
82,747

 
46,995

Cash and cash equivalents at end of period
 
$
48,829

 
$
82,747



                                       
Calix Press Release
 
Page 8 


Investor Inquiries:
David H. Allen
408-474-0080
David.Allen@Calix.com

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