Calix : 2020 Q2 Financial Statements

Calix, Inc.
Historical Financial Statements
GAAP and Non-GAAP Statements of Operations 2020
($ in thousands)		GAAP		Non-GAAP			GAAP		Non-GAAP			GAAP		Non-GAAP
		Qtr Ending		Qtr Ending			Qtr Ending		Qtr Ending			Ytd Ending		Ytd Ending
		3/28/2020		3/28/2020			6/27/2020		6/27/2020			6/27/2020		6/27/2020
Revenue:
Systems	$	94,509	$	94,509		$	110,841	$	110,841		$	205,350	$	205,350
Services		7,173		7,173			8,182		8,182			15,355		15,355
Total revenue		101,682		101,682			119,023		119,023			220,705		220,705
Cost of revenue:
Systems (1) (6) (7) (8)		50,708		48,984			56,721		53,421			107,429		102,405
Services (2)		5,350		5,235			5,897		5,807			11,247		11,042
Total cost of revenue		56,058		54,219			62,618		59,228			118,676		113,447
Gross profit		45,624		47,463			56,405		59,795			102,029		107,258
Gross margin %		44.9%		46.7%			47.4%		50.2%			46.2%		48.6%
Research and development (3)		20,671		19,661			20,921		19,824			41,592		39,485
Sales and marketing (4)		20,624		19,668			21,343		20,341			41,967		40,009
General and administrative (5)		10,669		9,873			11,193		10,267			21,862		20,140
Restructuring charges (9)		-		-			6,286		-			6,286		-
Total operating expenses		51,964		49,202			59,743		50,432			111,707		99,634
Income (loss) from operations		(6,340)		(1,739)			(3,338)		9,363			(9,678)		7,624
Interest expense, net		(290)		(290)			(617)		(617)			(907)		(907)
Other income (expense), net		15		15			(109)		(109)			(94)		(94)
Total interest expense and other income (expense), net		(275)		(275)			(726)		(726)			(1,001)		(1,001)
Provision for income taxes		329		329			148		148			477		477
Net income (loss)	$	(6,944)	$	(2,343)		$	(4,212)	$	8,489		$	(11,156)	$	6,146
Non-GAAP bridge to GAAP
(1) Cost of revenue -systems(stock-based compensation)			$	107				$	126				$	233
(2) Cost of revenue - services (stock-based compensation)				115					90					205
(3) Research and development (stock-based compensation)				1,010					1,097					2,107
(4) Sales and marketing (stock-based compensation)				956					1,002					1,958
(5) General and administrative (stock-based compensation)				796					926					1,722
(6) U.S. tariff and tariff-related costs				959					723					1,682
(7) Intangible asset amortization				658					658					1,316
(8) Component inventory accrual				-					1,793					1,793
(9) Restructuring charges				-					6,286					6,286
Total non-GAAP expenses			$	4,601				$	12,701				$	17,302
GAAP net loss			$	(6,944)				$	(4,212)				$	(11,156)

Calix's non-GAAP measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.

Calix, Inc.
Historical Financial Statements
Condensed Consolidated Balance Sheets 2020
($ in thousands)
	3/28/2020			6/27/2020
Assets
Current assets:
Cash and cash equivalents	$	46,189		$	50,552
Restricted cash			628				628
Accounts receivable, net			67,136				58,590
Inventory			30,539				36,659
Prepaid expenses and other current assets			11,223				11,640
Total current assets			155,715				158,069
Property and equipment, net			20,402				20,966
Right-of-use operating leases			15,212				11,079
Goodwill			116,175				116,175
Other assets			16,550				15,025
Total assets	$	324,054		$	321,314
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	20,464		$	10,204
Accrued liabilities			57,975				64,684
Deferred revenue			19,912				16,359
Line of credit			30,000				26,000
Total current liabilities			128,351				117,247
Long-term portion of deferred revenue			17,656				18,192
Operating leases			13,642				12,975
Other long-term liabilities			13,490				13,732
Stockholders' equity:
Common stock			1,549				1,587
Additional paid-in capital			899,978				912,402
Accumulated other comprehensive loss			(1,106)				(1,103)
Accumulated deficit			(709,520)				(713,732)
Treasury stock			(39,986)				(39,986)
Total stockholders' equity			150,915				159,168
Total liabilities and stockholders' equity	$	324,054		$	321,314

Calix, Inc.

Historical Financial Statements

Condensed Consolidated Statements of Cash Flows 2020 ($ in thousands)

	Qtr Ending			Qtr Ending			Ytd Ending
	3/28/2020			6/27/2020			6/27/2020
Operating activities
Net loss	$	(6,944)		$	(4,212)		$	(11,156)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation			2,984				3,241				6,225
Depreciation and amortization			3,544				3,462				7,006
Asset retirements and write-downs			-				3,749				3,749
Changes in operating assets and liabilities:
Accounts receivable, net			(20,627)				8,545				(12,082)
Inventory			9,614				(6,120)				3,494
Prepaid expenses and other assets			758				417				1,175
Accounts payable			9,472				(10,143)				(671)
Accrued liabilities			1,367				6,501				7,868
Deferred revenue			2,071				(3,018)				(947)
Other long-term liabilities			(990)				264				(726)
Net cash provided by operating activities			1,249				2,686				3,935
Investing activity -
Purchases of property and equipment			(1,729)				(2,751)				(4,480)
Financing activities
Proceeds from exercise of stock options			1,099				4,509				5,608
Proceeds from employee stock purchase plans			-				4,712				4,712
Payments related to financing arrangements			(842)				(687)				(1,529)
Proceeds from line of credit			30,000				-				30,000
Repayment of line of credit			(30,000)				(4,000)				(34,000)
Payments to originate the line of credit			(177)				(108)				(285)
Net cash provided by financing activities			80				4,426				4,506
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(240)				2				(238)
Net increase (decrease) in cash, cash equivalents and restricted cash			(640)				4,363				3,723
Cash, cash equivalents and restricted cash at beginning of period			47,457				46,817				47,457
Cash, cash equivalents and restricted cash at end of period	$	46,817		$	51,180		$	51,180