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) |
¨ | 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)) |
Exhibit No. | Description | |
99.1 | Press Release dated July 28, 2015 announcing financial results of the Company. |
Date: | July 28, 2015 | CALIX, INC. | ||||||
By: | /s/ William J. Atkins | |||||||
William J. Atkins | ||||||||
Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated July 28, 2015 announcing financial results of the Company. |
Calix Press Release | Page 2 |
Calix, Inc. | ||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended June 27, 2015 | ||||||||||||||||||||
Non-GAAP | Stock-Based Compensation | Amortization of Intangible Assets | Acquisition-Related Costs | GAAP | ||||||||||||||||
Revenue | $ | 99,129 | $ | — | $ | — | $ | — | $ | 99,129 | ||||||||||
Cost of revenue | 48,541 | 211 | 2,088 | — | 50,840 | |||||||||||||||
Gross profit | 50,588 | (211 | ) | (2,088 | ) | — | 48,289 | |||||||||||||
Gross margin | 51.0 | % | (0.2 | )% | (2.1 | )% | — | % | 48.7 | % | ||||||||||
Operating expenses | 47,320 | 4,130 | 2,552 | 52 | 54,054 | |||||||||||||||
Operating income (loss) | 3,268 | (4,341 | ) | (4,640 | ) | (52 | ) | (5,765 | ) | |||||||||||
Interest and other income (expense), net | 88 | — | — | — | 88 | |||||||||||||||
Income (loss) before taxes | 3,356 | (4,341 | ) | (4,640 | ) | (52 | ) | (5,677 | ) | |||||||||||
Provision for income taxes | 102 | — | — | — | 102 | |||||||||||||||
Net income (loss) | $ | 3,254 | $ | (4,341 | ) | $ | (4,640 | ) | $ | (52 | ) | $ | (5,779 | ) | ||||||
Weighted average diluted shares used to | ||||||||||||||||||||
compute non-GAAP net income (loss) | ||||||||||||||||||||
per common share | 52,455 | 52,455 | 52,455 | 52,455 | ||||||||||||||||
Non-GAAP net income (loss) per diluted share | $ | 0.06 | $ | (0.08 | ) | $ | (0.09 | ) | $ | — | ||||||||||
Weighted average basic and diluted shares used to | ||||||||||||||||||||
compute GAAP net loss per common share: | 51,950 | |||||||||||||||||||
GAAP net loss per share | $ | (0.11 | ) |
Calix Press Release | Page 3 |
Calix Press Release | Page 4 |
Calix, Inc. | ||||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Revenue | $ | 99,129 | $ | 98,005 | $ | 190,167 | $ | 183,825 | ||||||||||
Cost of revenue: | ||||||||||||||||||
Products and services (1) | 48,752 | 51,575 | 95,212 | 98,381 | ||||||||||||||
Amortization of intangible assets | 2,088 | 2,088 | 4,176 | 4,176 | ||||||||||||||
Total cost of revenue | 50,840 | 53,663 | 99,388 | 102,557 | ||||||||||||||
Gross profit | 48,289 | 44,342 | 90,779 | 81,268 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development (1) | 22,851 | 19,544 | 44,765 | 39,174 | ||||||||||||||
Sales and marketing (1) | 19,215 | 18,455 | 38,974 | 35,845 | ||||||||||||||
General and administrative (1) | 9,436 | 7,681 | 19,588 | 14,932 | ||||||||||||||
Amortization of intangible assets | 2,552 | 2,552 | 5,104 | 5,104 | ||||||||||||||
Total operating expenses | 54,054 | 48,232 | 108,431 | 95,055 | ||||||||||||||
Loss from operations | (5,765 | ) | (3,890 | ) | (17,652 | ) | (13,787 | ) | ||||||||||
Interest and other income (expense), net: | ||||||||||||||||||
Interest income | 338 | 30 | 717 | 34 | ||||||||||||||
Interest expense | (279 | ) | (58 | ) | (658 | ) | (115 | ) | ||||||||||
Other income (expense), net | 29 | 70 | 77 | 103 | ||||||||||||||
Total interest and other income (expense), net | 88 | 42 | 136 | 22 | ||||||||||||||
Loss before provision for income taxes | (5,677 | ) | (3,848 | ) | (17,516 | ) | (13,765 | ) | ||||||||||
Provision for income taxes | 102 | 103 | 193 | 213 | ||||||||||||||
Net loss | $ | (5,779 | ) | $ | (3,951 | ) | $ | (17,709 | ) | $ | (13,978 | ) | ||||||
Net loss per common share: | ||||||||||||||||||
Basic and diluted | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.34 | ) | $ | (0.28 | ) | ||||||
Weighted average number of shares used to compute | ||||||||||||||||||
net loss per common share: | ||||||||||||||||||
Basic and diluted | 51,950 | 50,573 | 51,843 | 50,425 | ||||||||||||||
(1) | Includes stock-based compensation as follows: | |||||||||||||||||
Cost of revenue | $ | 211 | $ | 354 | $ | 386 | $ | 708 | ||||||||||
Research and development | 1,483 | 1,306 | 2,695 | 2,486 | ||||||||||||||
Sales and marketing | 1,656 | 1,462 | 3,081 | 2,830 | ||||||||||||||
General and administrative | 991 | 1,282 | 1,841 | 2,282 | ||||||||||||||
$ | 4,341 | $ | 4,404 | $ | 8,003 | $ | 8,306 |
Calix Press Release | Page 5 |
Calix, Inc. | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Results | ||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 27, | June 28, | June 27, | June 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP net loss | $ | (5,779 | ) | $ | (3,951 | ) | $ | (17,709 | ) | $ | (13,978 | ) | ||||
Adjustments to reconcile GAAP net loss to | ||||||||||||||||
non-GAAP net income (loss): | ||||||||||||||||
Stock-based compensation | 4,341 | 4,404 | 8,003 | 8,306 | ||||||||||||
Amortization of intangible assets | 4,640 | 4,640 | 9,280 | 9,280 | ||||||||||||
Acquisition-related costs | 52 | — | 242 | — | ||||||||||||
Non-GAAP net income (loss) | $ | 3,254 | $ | 5,093 | $ | (184 | ) | $ | 3,608 | |||||||
Non-GAAP net income (loss) per common share: | ||||||||||||||||
Basic | $ | 0.06 | $ | 0.10 | $ | — | $ | 0.07 | ||||||||
Diluted | $ | 0.06 | $ | 0.10 | $ | — | $ | 0.07 | ||||||||
Weighted average shares used to compute non-GAAP | ||||||||||||||||
net income (loss) per common share: | ||||||||||||||||
Basic | 51,950 | 50,573 | 51,843 | 50,425 | ||||||||||||
Diluted (1) | 52,455 | 50,961 | 51,843 | 50,904 | ||||||||||||
(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) | ||||||||
June 27, | December 31, | |||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 39,672 | $ | 48,829 | ||||
Marketable securities | 59,785 | 62,850 | ||||||
Restricted cash | — | 295 | ||||||
Accounts receivable, net | 41,985 | 30,744 | ||||||
Inventory | 40,710 | 46,753 | ||||||
Deferred cost of revenue | 1,284 | 5,080 | ||||||
Prepaid expenses and other current assets | 11,457 | 12,936 | ||||||
Total current assets | 194,893 | 207,487 | ||||||
Property and equipment, net | 18,790 | 20,144 | ||||||
Goodwill | 116,175 | 116,175 | ||||||
Intangible assets, net | 15,899 | 25,179 | ||||||
Other assets | 1,241 | 1,236 | ||||||
Total assets | $ | 346,998 | $ | 370,221 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 18,538 | $ | 23,629 | ||||
Accrued liabilities | 36,545 | 39,443 | ||||||
Deferred revenue | 9,132 | 12,722 | ||||||
Total current liabilities | 64,215 | 75,794 | ||||||
Long-term portion of deferred revenue | 19,371 | 19,393 | ||||||
Other long-term liabilities | 1,903 | 2,443 | ||||||
Total liabilities | 85,489 | 97,630 | ||||||
Stockholders' equity: | ||||||||
Common stock | 1,313 | 1,291 | ||||||
Additional paid-in capital | 811,737 | 801,810 | ||||||
Accumulated other comprehensive income | 135 | 80 | ||||||
Accumulated deficit | (548,299 | ) | (530,590 | ) | ||||
Treasury stock | (3,377 | ) | — | |||||
Total stockholders' equity | 261,509 | 272,591 | ||||||
Total liabilities and stockholders' equity | $ | 346,998 | $ | 370,221 |
Calix Press Release | Page 7 |
Calix, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited, in thousands) | ||||||||
Six Months Ended | ||||||||
June 27, | June 28, | |||||||
2015 | 2014 | |||||||
Operating activities: | ||||||||
Net loss | $ | (17,709 | ) | $ | (13,978 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 4,978 | 4,522 | ||||||
Loss on retirement of property and equipment | 5 | — | ||||||
Amortization of intangible assets | 9,280 | 9,280 | ||||||
Amortization of premiums related to available-for-sale securities | 541 | 108 | ||||||
Stock-based compensation | 8,003 | 8,306 | ||||||
Changes in operating assets and liabilities: | ||||||||
Restricted cash | 295 | — | ||||||
Accounts receivable, net | (11,240 | ) | (3,809 | ) | ||||
Inventory | 6,042 | 5,183 | ||||||
Deferred cost of revenue | 3,796 | 5,119 | ||||||
Prepaid expenses and other assets | 1,065 | 960 | ||||||
Accounts payable | (5,091 | ) | (10,313 | ) | ||||
Accrued liabilities | (2,889 | ) | 2,601 | |||||
Deferred revenue | (3,612 | ) | (8,307 | ) | ||||
Other long-term liabilities | (135 | ) | (188 | ) | ||||
Net cash used in operating activities | (6,671 | ) | (516 | ) | ||||
Investing activities: | ||||||||
Purchases of property and equipment | (3,618 | ) | (4,328 | ) | ||||
Purchases of marketable securities | (25,271 | ) | (46,572 | ) | ||||
Maturities of marketable securities | 27,832 | — | ||||||
Net cash used in investing activities | (1,057 | ) | (50,900 | ) | ||||
Financing activities: | ||||||||
Proceeds from exercise of stock options | 590 | 139 | ||||||
Proceeds from employee stock purchase plan | 2,865 | 2,453 | ||||||
Purchases of treasury stock | (3,377 | ) | — | |||||
Taxes paid for awards vested under equity incentive plans | (1,510 | ) | (1,377 | ) | ||||
Net cash provided by (used in) financing activities | (1,432 | ) | 1,215 | |||||
Effect of exchange rate changes on cash and cash equivalents | 3 | (3 | ) | |||||
Net decrease in cash and cash equivalents | (9,157 | ) | (50,204 | ) | ||||
Cash and cash equivalents at beginning of period | 48,829 | 82,747 | ||||||
Cash and cash equivalents at end of period | $ | 39,672 | $ | 32,543 |
Calix Press Release | Page 8 |
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