Calix’s Atkins: CenturyLink, Windstream made up 21%, 15% of our 2016 revenue

Rural broadband
Calix’s growing focus on large domestic telcos is paying off as the access vendor reported strong revenue gains with CenturyLink and Windstream in the fourth quarter of 2016.

Calix’s growing focus on large domestic telcos is paying off as the access vendor reported strong revenue gains with CenturyLink and Windstream in the fourth quarter of 2016.

William Atkins, CFO of Calix, told investors during its fourth quarter earnings call that CenturyLink and Windstream were major revenue contributors in 2016.

“We had two customers each represent 10% or greater of annual revenues in 2016, which is primarily the result of our focus on increasing our market share of larger accounts,” Atkins said.

CenturyLink made up $97.7 million in Calix’s total revenues for 2016 and about 21% of its 2016 annual revenues.

RELATED: From CenturyLink to Verizon: Tracking wireline telecom earnings in Q4 2016

Windstream accounted for $69 million in total for 2016 or approximately 15% of the company’s 2016 annual revenues.

As Calix grows its presence with large telcos, the vendor is seeing growing momentum in professional services.

While it would not break out specific service revenue results, Atkins noted that services work jumped in the quarter.

“In the fourth quarter, the amount of services work accelerated significantly, driven primarily by project site schedules requiring us to deploy added resources to complete work and increasing overall project costs,” Atkins said.

From an overall financial perspective, Calix reported revenue was $131.8 million, up 25.5% year-over-year compared to $105 million for the fourth quarter of 2015.

Atkins said the fourth quarter of 2016 “marks the strongest quarterly year-over-year revenue growth since the third quarter of 2013.”

In 2016, domestic revenues were approximately 90.6% of Calix’s total revenues, while international revenues were approximately 9.4% of the company’s total revenues.

Domestic revenues were 88.6% of Calix’s fourth quarter results, representing an increase of $27.1 million or 30.3% year-over-year. International revenues were 11.4% of the company’s fourth quarter revenues, down $332,000 year-over-year.

Looking towards the first quarter 2017, Calix has forecast revenue to be in the range of $110–$114 million.   

The company said this revenue represents growth of 11.8%–15.9% year-over-year.