Calix : 2Q 2021 Financial Statements

Calix, Inc.
Historical Financial Statements
GAAP and Non-GAAP Statements of Operations 2021
($ in thousands)		GAAP		Non-GAAP			GAAP		Non-GAAP			GAAP		Non-GAAP
		Qtr Ending		Qtr Ending			Qtr Ending		Qtr Ending			Ytd Ending		Ytd Ending
		4/3/2021		4/3/2021			7/3/2021		7/3/2021			7/3/2021		7/3/2021
Revenue:
Systems	$	153,302	$	153,302		$	159,553	$	159,553		$	312,855	$	312,855
Services		8,772		8,772			9,117		9,117			17,889		17,889
Total revenue		162,074		162,074			168,670		168,670			330,744		330,744
Cost of revenue:
Systems (1) (6)		69,663		68,843			72,673		73,324			142,336		142,167
Services (2)		6,169		6,019			6,378		6,221			12,547		12,240
Total cost of revenue		75,832		74,862			79,051		79,545			154,883		154,407
Gross profit		86,242		87,212			89,619		89,125			175,861		176,337
Gross margin %		53.2%		53.8%			53.1%		52.8%			53.2%		53.3%
Sales and marketing (3)		28,051		26,604			29,710		27,987			57,761		54,591
Research and development (4)		24,364		22,781			25,716		24,072			50,080		46,853
General and administrative (5)		13,025		11,196			13,664		11,150			26,689		22,346
Total operating expenses		65,440		60,581			69,090		63,209			134,530		123,790
Income from operations		20,802		26,631			20,529		25,916			41,331		52,547
Interest expense, net		(125)		(125)			(119)		(119)			(244)		(244)
Other income, net		88		88			255		255			343		343
Total interest expense and other income, net		(37)		(37)			136		136			99		99
Provision for income taxes		150		150			207		207			357		357
Net income	$	20,615	$	26,444		$	20,458	$	25,845		$	41,073	$	52,289
Non-GAAP bridge to GAAP
(1) Cost of revenue -systems(stock-based compensation)			$	162				$	185				$	347
(2) Cost of revenue - services (stock-based compensation)				150					157					307
(3) Sales and marketing (stock-based compensation)				1,447					1,723					3,170
(4) Research and development (stock-based compensation)				1,583					1,644					3,227
(5) General and administrative (stock-based compensation)				1,829					2,514					4,343
(6) Intangible asset amortization				658					658					1,316
(7) U.S. tariff refund				-					(1,494)					(1,494)
Total non-GAAP expenses			$	5,829				$	5,387				$	11,216
GAAP net income			$	20,615				$	20,458				$	41,073

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 Sheet 2021
($ in thousands)
	4/3/2021			7/3/2021
Assets
Current assets:
Cash and cash equivalents	$	85,854		$	58,590
Marketable securities			64,174				117,259
Accounts receivable, net			74,408				80,164
Inventory			72,211				77,136
Prepaid expenses and other current assets			13,122				17,449
Total current assets			309,769				350,598
Property and equipment, net			20,103				19,663
Right-of-use operating leases			11,015				10,983
Goodwill			116,175				116,175
Other assets			11,073				10,416
Total assets	$	468,135		$	507,835
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	29,224		$	34,971
Accrued liabilities			56,031				58,627
Deferred revenue			24,127				23,951
Total current liabilities			109,382				117,549
Long-term portion of deferred revenue			20,329				21,307
Operating leases			12,167				11,920
Other long-term liabilities			11,542				11,421
Stockholders' equity:
Common stock			1,572				1,580
Additional paid-in capital			961,846				972,259
Accumulated other comprehensive loss			(226)				(182)
Accumulated deficit			(648,477)				(628,019)
Total stockholders' equity			314,715				345,638
Total liabilities and stockholders' equity	$	468,135		$	507,835

Calix, Inc.

Historical Financial Statements

Condensed Consolidated Statement of Cash Flows 2021 ($ in thousands)

	Qtr Ending			Qtr Ending			Ytd Ending
	4/3/2021			7/3/2021			7/3/2021
Operating activities
Net income	$	20,615		$	20,458		$	41,073
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation			5,171				6,223				11,394
Depreciation and amortization			4,077				3,660				7,737
Changes in operating assets and liabilities:
Accounts receivable, net			(4,989)				(5,756)				(10,745)
Inventory			(19,943)				(4,925)				(24,868)
Prepaid expenses and other assets			(1,321)				(5,069)				(6,390)
Accounts payable			16,156				5,762				21,918
Accrued liabilities			(12,856)				2,672				(10,184)
Deferred revenue			5,362				802				6,164
Other long-term liabilities			(2,374)				(368)				(2,742)
Net cash provided by operating activities			9,898				23,459				33,357
Investing activities:
Purchases of property and equipment			(2,274)				(1,654)				(3,928)
Purchases of marketable securities			(54,192)				(93,085)				(147,277)
Maturities of marketable securities			43,000				40,000				83,000
Net cash used in investing activities			(13,466)				(54,739)				(68,205)
Financing activities
Proceeds from common stock issuances related to employee benefit plans			8,639				4,198				12,837
Payments related to financing arrangements			-				(212)				(212)
Net cash provided by financing activities			8,639				3,986				12,625
Effect of exchange rate changes on cash and cash equivalents			(24)				30				6
Net increase (decrease) in cash and cash equivalents			5,047				(27,264)				(22,217)
Cash and cash equivalents at beginning of period			80,807				85,854				80,807
Cash and cash equivalents at end of period	$	85,854		$	58,590		$	58,590