Calix (NYSE: CALX) reported that Q3 2013 revenue rose 27 percent to $103.6 million, up from $81.3 million in Q3 2012 due to an uptick in its Unified Access portfolio products to both domestic and international service provider customers.
It initially forecast Q3 revenues between $102 million and $106 million. Analysts expected Q3 profit to be 14 cents a share, up from 4 cents a year earlier, and revenue of $104.35 million.
The company's non-GAAP net income was $10.2 million, or 20 cents per fully diluted share. Non-GAAP net income was $1.8 million, or 4 cents per fully diluted share, for the third quarter of 2012. GAAP net income for the third quarter of 2013 was $0.5 million, or 1 cent per basic and diluted share, compared to a GAAP net loss of $7.1 million, or 15 cents per basic and diluted share for the third quarter of 2012.
During the quarter, Calix reported service providers in 16 states in the U.S. and Canada announced Gbps-based fiber to the home (FTTH) services using their Unified Access product line.
One of Calix's key FTTH customer wins was CenturyLink (NYSE: CTL), which named it as its GPON supplier for its pilot in Omaha, Neb.
Carl Russo, president and CEO of Calix, said during the earnings call that the company is seeing more of its customers citing interest in deploying FTTH networks.
"It's becoming a much more widespread phenomenon," he said. "And part of it is driven by the economics of where fiber deployments have started to get to, i.e. lower upfront costs with much better operating economics, versus where continually extending the copper is going if the service provider is in a competitive environment."
These deployments helped drive up domestic revenue 12.9 percent to $92.9 million.
It also continued to make progress outside of the United States and Canada as international revenues were $10.7 million. While international sales were 10 percent of its revenues, they declined 11.6 percent sequentially from $12.1 million in Q2 2013.
For the fourth quarter, the vendor issued a more conservative outlook with a revenue range of between $97 million and $103 million and gross margin of 46 percent and 47 percent.
Michael Ashby, CFO of Calix, said during the earnings call that "This expected decline reflects the completion of several BBS projects and include professional services where we have lower margins" and "we believe that this is a one-time gross margin impact."
Shares of Calix were listed at $12.50 at the close of trading on the New York Stock Exchange on Tuesday.
For more:
- see the earnings release
- see the earnings transcript (sub req.)
Earnings summary: Wireline telecom earnings in the third quarter of 2013
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