Calix's first-quarter revenue rises to $91M, but slow carrier orders could impact second-quarter results

While Calix reported that first-quarter 2015 revenue was $91 million, up 6.1 percent from $85.8 million for the first quarter of 2014, it said that slow budgets from its largest service provider customers could have an impact on second-quarter revenues.

"Budgets got off to a slow start in our largest customers," said William Atkins, EVP and CFO of Calix, during the earnings call, according to a Seeking Alpha transcript. "And while we're seeing orders beginning to pick up, we expect revenues to be in line or slightly down from last year's Q2 levels reflecting a year that is growing slowly in the first half relative to last year's first half."

Calix has forecast that second-quarter 2015 revenues will be in a range of between $94 million and $98 million with a midpoint of $96 million, which is down 2 percent from the $98 million level it reported for the second quarter of 2014.

Although it saw strong uptick from its Tier 2 and Tier 3 customers, Calix also took a hit on international revenue, which was $10.1 million in the first quarter, down from $10.6 million in the first quarter of 2014. The company noted that it did have one customer that made up 10 percent or greater of its international revenue this quarter.

One area where it did see an uptick in customer adoption across the markets it serves was with its Wi-Fi-based home networking GigaCenter solution.

"On the new product front, and in just its second quarter of availability, our new GigaCenter solution continues to show strong gain, signing orders from over 200 service providers since introduction," said Carl Russo, CEO of Calix, during the earnings call.

In addition to seeing more opportunities to sell its GigaCenter product to service providers to improve the in-home service experience, Russo added that the company sees potential in the emerging G.fast last mile access standard.

"What has us excited about G.fast is that there are very clear use cases that as fiber moves closer and closer to the subscriber edge, there are places where G.fast is clearly the right way to try and bridge that last few hundred feet gap," Russo said. "And so, what first has me excited is that it has a very clear use case."

Calix's earnings per share (EPS) was negative $0.07, with revenues at the mid-point of the company's guidance and earnings per share also at the middle of guidance.

Excluding the cost incurred in relation to its Occam shareholder lawsuit, EPS would have been negative $0.03, $0.01 better than the top-end of its guidance. During the quarter, Calix recognized another $1.7 million of Occam litigation-related expenses. 

Calix's non-GAAP net loss for the first quarter of 2015 was $3.4 million, or $(0.07) per basic and fully diluted share, compared to a non-GAAP net loss of $1.5 million, or $(0.03) per basic and fully diluted share, for the first quarter of 2014.

Shares of Calix closed at $8.00, down 69 cents or 7.94 percent, at the end of Wednesday trading on the New York Stock Exchange.

For more:
- see the earnings release
- here's the earnings transcript (reg. req.)

Special Report: Wireline telecom earnings in the first quarter of 2015

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