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) |
(707) 766-3000 |
(Registrant’s telephone number, including area code) |
Not Applicable |
(Former name or former address if changed since last report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging Growth Company | o |
Exhibit No. | Description | |
99.1 | Press Release dated May 9, 2017 announcing financial results of the Company. | |
99.2 | Historical financial supplemental information. |
Date: | May 9, 2017 | CALIX, INC. | ||||||
By: | /s/ Carl Russo | |||||||
Carl Russo | ||||||||
Chief Executive Officer |
Exhibit No. | Description | |
99.1 | Press Release dated May 9, 2017 announcing financial results of the Company. | |
99.2 | Historical financial supplemental information. |
Revenue | $122.0 - $126.0 million, representing growth of 13.6% - 17.3% year-over-year |
Non-GAAP Gross Margin | 40.5% - 43.5% |
Non-GAAP Operating Expense | $59.0 - $61.0 million |
Non-GAAP Net Loss Per Share | ($0.19) - ($0.12) |
Calix Press Release | Page 2 |
Calix Press Release | Page 3 |
Calix, Inc. | ||||||||||
Condensed Consolidated Statements of Operations | ||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||
Three Months Ended | ||||||||||
April 1, | March 26, | |||||||||
2017 | 2016 | |||||||||
Revenue: | ||||||||||
Systems | $ | 91,605 | $ | 91,680 | ||||||
Services | 25,913 | 6,695 | ||||||||
Total revenue | 117,518 | 98,375 | ||||||||
Cost of revenue: | ||||||||||
Systems (1) | 57,373 | 47,693 | ||||||||
Services (1) | 25,768 | 5,200 | ||||||||
Total cost of revenue | 83,141 | 52,893 | ||||||||
Gross profit | 34,377 | 45,482 | ||||||||
Operating expenses: | ||||||||||
Research and development (1) | 33,808 | 22,773 | ||||||||
Sales and marketing (1) | 22,429 | 19,062 | ||||||||
General and administrative (1) | 10,257 | 12,684 | ||||||||
Amortization of intangible assets | — | 1,701 | ||||||||
Restructuring charges | 699 | — | ||||||||
Total operating expenses | 67,193 | 56,220 | ||||||||
Loss from operations | (32,816 | ) | (10,738 | ) | ||||||
Interest and other income (expense), net: | ||||||||||
Interest income | 88 | 211 | ||||||||
Interest expense | (44 | ) | (164 | ) | ||||||
Other income (expense), net | 120 | 83 | ||||||||
Total interest and other income (expense), net | 164 | 130 | ||||||||
Loss before provision for income taxes | (32,652 | ) | (10,608 | ) | ||||||
Provision for income taxes | 673 | 121 | ||||||||
Net loss | $ | (33,325 | ) | $ | (10,729 | ) | ||||
Net loss per common share: | ||||||||||
Basic and diluted | $ | (0.67 | ) | $ | (0.22 | ) | ||||
Weighted average number of shares used to compute | ||||||||||
net loss per common share: | ||||||||||
Basic and diluted | 49,525 | 48,591 | ||||||||
(1) | Includes stock-based compensation as follows: | |||||||||
Cost of revenue: | ||||||||||
Systems | $ | 116 | $ | 90 | ||||||
Services | 56 | 37 | ||||||||
Research and development | 1,326 | 1,047 | ||||||||
Sales and marketing | 1,111 | 822 | ||||||||
General and administrative | 931 | 725 | ||||||||
$ | 3,540 | $ | 2,721 |
Calix Press Release | Page 4 |
Calix, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited, in thousands) | ||||||||
April 1, | December 31, | |||||||
2017 | 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 26,318 | $ | 50,359 | ||||
Marketable securities | 25,215 | 27,748 | ||||||
Accounts receivable, net | 64,188 | 51,336 | ||||||
Inventory | 46,538 | 44,545 | ||||||
Deferred cost of revenue | 40,454 | 34,763 | ||||||
Prepaid expenses and other current assets | 11,911 | 10,571 | ||||||
Total current assets | 214,624 | 219,322 | ||||||
Property and equipment, net | 18,144 | 17,984 | ||||||
Goodwill | 116,175 | 116,175 | ||||||
Intangible assets, net | — | 813 | ||||||
Other assets | 816 | 1,181 | ||||||
Total assets | $ | 349,759 | $ | 355,475 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 24,520 | $ | 23,827 | ||||
Accrued liabilities | 77,015 | 69,715 | ||||||
Deferred revenue | 44,416 | 27,854 | ||||||
Total current liabilities | 145,951 | 121,396 | ||||||
Long-term portion of deferred revenue | 20,876 | 20,237 | ||||||
Other long-term liabilities | 775 | 878 | ||||||
Total liabilities | 167,602 | 142,511 | ||||||
Stockholders’ equity: | ||||||||
Common stock | 1,374 | 1,368 | ||||||
Additional paid-in capital | 839,018 | 836,563 | ||||||
Accumulated other comprehensive loss | (599 | ) | (656 | ) | ||||
Accumulated deficit | (617,650 | ) | (584,325 | ) | ||||
Treasury stock | (39,986 | ) | (39,986 | ) | ||||
Total stockholders’ equity | 182,157 | 212,964 | ||||||
Total liabilities and stockholders’ equity | $ | 349,759 | $ | 355,475 |
Calix Press Release | Page 5 |
Calix, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited, in thousands) | ||||||||
Three Months Ended | ||||||||
April 1, | March 26, | |||||||
2017 | 2016 | |||||||
Operating activities: | ||||||||
Net loss | $ | (33,325 | ) | $ | (10,729 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 2,463 | 1,955 | ||||||
Loss on retirement of property and equipment | 80 | — | ||||||
Amortization of intangible assets | 813 | 3,364 | ||||||
Amortization of premiums relating to available-for-sale securities | (5 | ) | 114 | |||||
Stock-based compensation | 3,540 | 2,721 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (12,852 | ) | 3,351 | |||||
Inventory | (1,993 | ) | 6,540 | |||||
Deferred cost of revenue | (5,691 | ) | 810 | |||||
Prepaid expenses and other assets | (968 | ) | (576 | ) | ||||
Accounts payable | 276 | (8,459 | ) | |||||
Accrued liabilities | 7,110 | 8,471 | ||||||
Deferred revenue | 17,201 | (2,195 | ) | |||||
Other long-term liabilities | (103 | ) | (98 | ) | ||||
Net cash provided by (used in) operating activities | (23,454 | ) | 5,269 | |||||
Investing activities: | ||||||||
Purchases of property and equipment | (2,106 | ) | (1,453 | ) | ||||
Purchases of marketable securities | (8,732 | ) | — | |||||
Maturities of marketable securities | 11,266 | 7,020 | ||||||
Net cash provided by investing activities | 428 | 5,567 | ||||||
Financing activities: | ||||||||
Proceeds from exercise of stock options | 13 | 14 | ||||||
Payments for repurchases of common stock | — | (12,809 | ) | |||||
Taxes paid for awards vested under equity incentive plans | (1,093 | ) | (251 | ) | ||||
Net cash used in financing activities | (1,080 | ) | (13,046 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 65 | (51 | ) | |||||
Net decrease in cash and cash equivalents | (24,041 | ) | (2,261 | ) | ||||
Cash and cash equivalents at beginning of period | 50,359 | 23,626 | ||||||
Cash and cash equivalents at end of period | $ | 26,318 | $ | 21,365 |
Calix Press Release | Page 6 |
Calix, Inc. | ||||||||
Reconciliation of GAAP to Non-GAAP Results | ||||||||
(Unaudited, in thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
April 1, | March 26, | |||||||
2017 | 2016 | |||||||
GAAP net loss | $ | (33,325 | ) | $ | (10,729 | ) | ||
Adjustments to reconcile GAAP net loss to non-GAAP net loss: | ||||||||
Stock-based compensation | 3,540 | 2,721 | ||||||
Amortization of intangible assets | 813 | 3,364 | ||||||
Restructuring charges | 699 | — | ||||||
Acquisition-related costs | — | 275 | ||||||
Non-GAAP net loss | $ | (28,273 | ) | $ | (4,369 | ) | ||
Non-GAAP net loss per common share: | ||||||||
Basic and diluted | $ | (0.57 | ) | $ | (0.09 | ) | ||
Weighted average number of shares used to compute | ||||||||
non-GAAP net loss per common share: | ||||||||
Basic and diluted | 49,525 | 48,591 |
Calix, Inc. | ||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Results | ||||||||||||||||||||
(Unaudited, in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended April 1, 2017 | ||||||||||||||||||||
GAAP | Stock-Based Compensation | Amortization of Intangible Assets | Restructuring Charges | Non-GAAP | ||||||||||||||||
Revenue | $ | 117,518 | $ | — | $ | — | $ | — | $ | 117,518 | ||||||||||
Cost of revenue | 83,141 | (172 | ) | (813 | ) | — | 82,156 | |||||||||||||
Gross profit | 34,377 | 172 | 813 | — | 35,362 | |||||||||||||||
Gross margin | 29.3 | % | 0.1 | % | 0.7 | % | — | % | 30.1 | % | ||||||||||
Operating expenses | 67,193 | (3,368 | ) | — | (699 | ) | 63,126 | |||||||||||||
Operating loss | (32,816 | ) | 3,540 | 813 | 699 | (27,764 | ) | |||||||||||||
Interest and other income (expense), net | 164 | — | — | — | 164 | |||||||||||||||
Loss before provision for income taxes | (32,652 | ) | 3,540 | 813 | 699 | (27,600 | ) | |||||||||||||
Provision for income taxes | 673 | — | — | — | 673 | |||||||||||||||
Net loss | $ | (33,325 | ) | $ | 3,540 | $ | 813 | $ | 699 | $ | (28,273 | ) | ||||||||
Weighted average diluted shares used to | ||||||||||||||||||||
compute net loss per common share | 49,525 | 49,525 | 49,525 | 49,525 | 49,525 | |||||||||||||||
Net loss per diluted share | $ | (0.67 | ) | $ | 0.07 | $ | 0.02 | $ | 0.01 | $ | (0.57 | ) |
Calix Press Release | Page 7 |
Calix, Inc. | ||||||||
Reconciliation of GAAP to Non-GAAP Outlook | ||||||||
(Unaudited, in thousands, except per share data) | ||||||||
Three Months Ending July 1, 2017 | ||||||||
Outlook | GAAP | Stock-Based Compensation | Restructuring Charges | Non-GAAP | ||||
Gross margin | 40.5% - 43.5% | 0.01% | 0.00% | 40.5% - 43.5% | ||||
Operating expenses | $ 63,800 - $ 65,800 | $ (3,100) | $ (1,700) | $ 59,000 - $ 61,000 | ||||
Net loss per diluted share | $ (0.28) - $ (0.21) | $ 0.06 | $ 0.03 | $ (0.19) - $ (0.12) |
Calix, Inc. | ||||
Reconciliation of GAAP to Non-GAAP Outlook | ||||
(Unaudited) | ||||
Outlook | Twelve Months Ending December 31, 2017 | |||
Estimated per common share adjustments for: | ||||
Stock-based compensation | $ | 0.25 | ||
Amortization of intangible assets | 0.02 | |||
Restructuring charges (1) | 0.13 | |||
Total GAAP to non-GAAP net loss per common share adjustments | $ | 0.40 |
Calix, Inc. | ||||||||||||||||||||
Historical Financial Supplemental Information | ||||||||||||||||||||
(Recast of Revenue and Cost of Revenue by Class) | ||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||
Three Months Ended | Year Ended December 31, 2016 | |||||||||||||||||||
March 26, 2016 | June 25, 2016 | September 24, 2016 | December 31, 2016 | |||||||||||||||||
Revenue: | ||||||||||||||||||||
Systems | $ | 91,680 | $ | 100,144 | $ | 114,029 | $ | 122,731 | $ | 428,584 | ||||||||||
Services | 6,695 | 7,281 | 7,158 | 9,069 | 30,203 | |||||||||||||||
Total revenue | 98,375 | 107,425 | 121,187 | 131,800 | 458,787 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Systems | 47,693 | 51,501 | 60,662 | 69,120 | 228,976 | |||||||||||||||
Services | 5,200 | 5,918 | 6,981 | 10,494 | 28,593 | |||||||||||||||
Total cost of revenue | 52,893 | 57,419 | 67,643 | 79,614 | 257,569 | |||||||||||||||
Gross profit | $ | 45,482 | $ | 50,006 | $ | 53,544 | $ | 52,186 | $ | 201,218 |
Three Months Ended | Year Ended December 31, 2015 | |||||||||||||||||||
March 28, 2015 | June 27, 2015 | September 26, 2015 | December 31, 2015 | |||||||||||||||||
Revenue: | ||||||||||||||||||||
Systems | $ | 84,917 | $ | 92,778 | $ | 108,440 | $ | 99,806 | $ | 385,941 | ||||||||||
Services | 6,121 | 6,351 | 3,857 | 5,193 | 21,522 | |||||||||||||||
Total revenue | 91,038 | 99,129 | 112,297 | 104,999 | 407,463 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Systems | 45,145 | 47,628 | 56,894 | 55,059 | 204,726 | |||||||||||||||
Services | 3,403 | 3,212 | 2,290 | 3,403 | 12,308 | |||||||||||||||
Total cost of revenue | 48,548 | 50,840 | 59,184 | 58,462 | 217,034 | |||||||||||||||
Gross profit | $ | 42,490 | $ | 48,289 | $ | 53,113 | $ | 46,537 | $ | 190,429 |
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