CALIX, INC Dyskusja i analiza sytuacji finansowej i wyników operacyjnych kierownictwa CALIX (formularz 10-Q)
This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities and Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions, including any projections of earnings, revenue or other financial items, any statement of or concerning the following: the plans and objectives of management for future operations, proposed new products or licensing, product development, anticipated customer demand or capital expenditures, anticipated growth and trends in our business and industry, future economic and/or market conditions or performance and assumptions underlying any of the above. In some cases, forward-looking statements can be identified by the use of terminology such as "could," "may," "will," "would," "expects," "believes," "intends," "plans," "anticipates," "estimates," "projects," "predicts," "potential," or "continue" or the negative thereof or other comparable terminology. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations or any of the forward-looking statements will prove to be correct, and actual results could differ materially from those projected or assumed in the forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to inherent risks and uncertainties, including those identified in the Risk Factors discussed in Part II, Item 1A, of this report on Form 10-Q, as well as in other sections of this report and in our Annual Report on Form 10-K for the year ended December 31, 2022. All forward-looking statements and reasons why results may differ included in this Quarterly Report on Form 10-Q are made as of the date hereof, and we assume no obligation to update these forward-looking statements or reasons why actual results might differ.
Przegląd
We are the leading global provider of a broadband delivery platform (cloud, software and systems) and managed services that enable service providers of all types and sizes to innovate and transform their businesses. For our customers to successfully transform their businesses into the innovative BSPs of the future, they require actionable data for critical business functions such as network operations, customer support and marketing. However, this data is often trapped in disparate systems or departmental silos. Our Calix platform, which includes Calix Cloud, Revenue EDGE and Intelligent Access EDGE, gathers, analyzes and applies machine learning to deliver real-time insights seamlessly to each key business function. Our customers utilize these insights and data to simplify network operations, marketing and customer support and deliver experiences that excite their subscribers. This enables BSPs to grow their brand through increased subscriber acquisition, loyalty and revenue and to reduce their operating costs, creating value for their businesses and the communities they serve. We market our Calix platform and managed services to communication service providers globally through our direct sales force as well as select resellers. Our customers range from smaller, regional service providers to some of the world's largest service providers. We have enabled approximately 1,900 customers purchasing directly and through partners to deploy passive optical, Active Ethernet and point-to-point Ethernet fiber access networks.
Nasze przychody i potencjalny wzrost przychodów będą zależały od naszej zdolności do rozwijania, wprowadzania na rynek i sprzedawania naszej platformy i usług zarządzanych strategicznie ukierunkowanym klientom wszelkiego rodzaju, takim jak WISP, operatorzy światłowodów, operatorzy sieci kablowych, gminy i spółdzielnie elektryczne w Stanach Zjednoczonych i na całym świecie. Nasz rozwój jest również w dużym stopniu zależny od szybkości i gotowości klientów do przyjęcia platformy Calix i usług zarządzanych.
Revenue fluctuations result from many factors, including, but not limited to:
increases or decreases in customer orders for our products and services, market,
financial or other factors that may delay or materially impact customer
purchasing decisions, non-availability of products due to supply chain
challenges, including component and labor shortages and increasing lead times as
well as disruptions as a result of pandemics or natural disasters, contractual
terms with customers that result in delayed revenue recognition and varying
budget cycles and seasonal buying patterns of our customers. More specifically,
our customers have in the past spent less in the first quarter as they are
finalizing their annual budgets, and in certain regions, customers are
challenged by winter weather conditions that inhibit fiber deployment in outside
infrastructure. Our revenue is also dependent upon our customers' timing of
purchases, capital expenditure plans and decisions to upgrade their networks or
adopt new technologies, including adoption of our software and cloud platform
solutions, as well as our ability to grow our customer base.
Cost of revenue is strongly correlated to revenue and tends to fluctuate due to
all of the above factors that may cause revenue fluctuations. Factors that have
impacted our cost of revenue for the three months ended April 1, 2023, and that
we expect will impact cost of revenue in future periods, also include: changes
in the mix of products delivered, customer location and regional mix, changes in
the cost of our inventory, including higher costs due to materials shortages
including components, supply constraints or unfavorable changes in trade
policies, investments to support expansion of cloud and customer support
offerings as well as our customer success organization, changes in product
warranty and incurrence of retrofit costs, amortization of intangibles, asset
write-offs, support fees for silicon-related development work for our products,
allowances for obligations to our suppliers and inventory write-downs. Given the
ongoing supply-chain disruptions related to component shortages, longer
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lead times as a result of increased global demand for certain components and disruptions related to the COVID-19 pandemic, we have experienced and, while improving, are continuing to experience product supply delays and related challenges, and we expect these delays and related challenges to persist in the foreseeable future. In addition, we periodically elect to ship by air versus by ocean in order to meet delivery commitments to our customers, which is more costly. Cost of revenue also includes fixed expenses related to our internal operations, which could increase our cost of revenue as a percentage of revenue if our revenue declines. Our gross profit and gross margin fluctuate based on timing of factors such as changes in customer mix and changes in the mix of products demanded and sold (and any related write-downs of existing inventory or accrual for supplier commitments) and have in the past been and may be negatively impacted by increases in mix of revenue from channel sales rather than direct sales or other unfavorable customer or product mix, shipment volumes and any related volume discounts, changes in our product and services costs, pricing decreases or discounts, new product introductions or upgrades to existing products, customer rebates and incentive programs due to competitive pressure or materials shortages, supply constraints, investments to support expansion of cloud and customer support offerings, tariffs or unfavorable changes in trade policies. Our operating expenses fluctuate based on the following factors among others: changes in headcount and personnel costs, which comprise a significant portion of our operating expenses; variable compensation due to fluctuations in shipment volumes or level of achievement against performance targets; timing of research and development expenses, including investments in innovative solutions and new customer segments, prototype builds and outsourced development resources; investments in marketing programs; asset write-offs; investments in our business and information technology infrastructure; and fluctuations in stock-based compensation expenses due to timing of equity grants or other factors affecting vesting. Further, as a result of factors contributing to the fluctuations described above among other factors, many of which are outside our control, our quarterly operating results fluctuate from period to period. Comparing our operating results on a period-to-period basis may not be meaningful, and you should not rely on our past results as an indication of our future performance.
Krytyczne zasady rachunkowości i szacunki
Our financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Management bases its estimates, assumptions and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances. To the extent there are material differences between these estimates and actual results, our financial statements may be affected. Our management evaluates its estimates, assumptions and judgments on an ongoing basis. Our critical accounting policies and estimates, which are revenue recognition, inventory valuation and supplier purchase commitments and income taxes, are described under "Critical Accounting Policies and Estimates" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2022. For the three months ended April 1, 2023, there have been no significant changes in our critical accounting policies and estimates.
Najnowsze komunikaty księgowe
There have been no additional accounting pronouncements or changes in accounting pronouncements during the three months ended April 1, 2023 as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2022 that are significant or potentially significant to us. Results of Operations
Porównanie trzech miesięcy zakończonych 1 kwietnia 2023 r. i 2 kwietnia 2022 r.
Przychód
Poniższa tabela przedstawia nasze przychody (w tysiącach dolarów):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Revenue $ 250,008 $ 184,948 $ 65,060 35 %
Our revenue increased by $65.1 million for the three months ended April 1, 2023,
respectively, as compared to the corresponding period in 2022. The increase in
revenue was primarily due to higher revenue from our growing base of small and
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medium BSP customers and the continuation of BSPs seeking to provide their subscribers a better experience by adopting our platform and managed services. During the second half of 2022, we added a new medium-sized customer that began to receive significant shipments during the second half of 2022 and the three months ended April 1, 2023. For the three months ended April 1, 2023, revenue generated in the United States was $227.9 million, or 91% of our revenue, compared to $165.6 million, or 90% of our revenue for the same period in 2022. International revenue was $22.1 million, or 9% of our revenue, for the three months ended April 1, 2023, as compared to $19.3 million, or 10% of our revenue, for the same period in 2022.
Żaden klient nie odpowiadał za więcej niż 10% przychodów Spółki w okresie trzech miesięcy zakończonym 1 kwietnia 2023 r. i 2 kwietnia 2022 r.
Zysk brutto i marża brutto
The following table sets forth our gross profit and gross margin (dollars in
thousands):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Gross profit $ 128,051 $ 91,792 $ 36,259 40 %
Gross margin 51.2 % 49.6 %
Gross profit increased to $128.1 million for the three months ended April 1,
2023, from $91.8 million during the corresponding period in 2022. The increase
in gross margin of 160 basis points for the three months ended April 1, 2023
compared to the corresponding period in 2022, was mainly due to the increase in
revenue, an increase in contributions from our software and subscription
offerings and our overall product mix.
Koszty operacyjne
Koszty sprzedaży i marketingu
The following table sets forth our sales and marketing expenses (dollars in
thousands):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Koszty sprzedaży i marketingu 51 865 USD 36 091 USD 15 774 USD
44 % Percent of revenue 21 % 20 % Sales and marketing expenses for the three months ended April 1, 2023 increased by $15.8 million compared with the corresponding period in 2022 primarily due to increases in personnel expenses mainly related to sales headcount and higher sales incentive compensation of $10.6 million, stock-based compensation of $1.9 million, travel expenses of $1.4 million and marketing expenses of $0.8 million.
Oczekujemy, że nasze inwestycje w sprzedaż i marketing wzrosną w dolarach bezwzględnych, ale będą stosunkowo stałe jako procent przychodów, ponieważ poszerzamy nasz zasięg rynkowy i rozwijamy naszą działalność w celu wspierania naszych kluczowych inicjatyw strategicznych.
Wydatki na badania i rozwój
The following table sets forth our research and development expenses (dollars in
thousands):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Research and development expenses $ 43,173 $ 29,817 $ 13,356 45 %
Percent of revenue 17 % 16 %
Percentage of gross profit 34 % 32 %
Research and development expenses for the three months ended April 1, 2023
increased by $13.4 million as compared with the corresponding period in 2022
mainly due to increases in personnel expenses of $8.2 million, outside services
of $1.8 million, small equipment expenses of $1.3 million and depreciation and
amortization of $0.7 million.
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We expect our investments in research and development to increase in absolute dollars, but remain relatively consistent as a percentage of gross profit, as we seek to expand the functionality and capabilities of our platforms.
Koszty ogólnoadministracyjne
The following table sets forth our general and administrative expenses (dollars
in thousands):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022
Dolary Procent Koszty ogólne i administracyjne 23 077 USD 16 031 USD 7 046 USD
44 % Percent of revenue 9 % 9 % General and administrative expenses for the three months ended April 1, 2023 increased by $7.0 million as compared with the corresponding period in 2022 mainly due to increases in personnel expenses of $3.3 million, stock-based compensation of $3.1 million and outside services of $0.8 million. We plan to continue to invest in our information technology infrastructure and headcount due to the growth of our business. We expect our general and administrative investments to increase in absolute dollars but decline slightly as a percentage of revenue over time in relation to increased revenue.
Odsetki i inne dochody (wydatki), netto
The following table sets forth our interest and other expense, net (dollars in
thousands):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Interest and other income (expense), net $ 1,473 $ (33) $ 1,506 4,564 %
Percent of revenue 1 % - %
Interest and other income (expense), net increased by $1.5 million as compared
with the corresponding period in 2022 mainly due to a higher rate of interest
earned on our cash, cash equivalents and marketable securities as well as a
growing cash balance.
Podatki dochodowe
Poniższa tabela przedstawia nasze podatki dochodowe (w tysiącach dolarów):
Three Months Ended
Variance Variance
April 1, April 2, in in
2023 2022 Dollars Percent
Income taxes $ 1,811 $ 1,701 $ 110 6 %
Effective tax rate 15.9 % 17.3 %
For the three months ended April 1, 2023, our income tax expense was $1.8
million for an effective tax rate of 15.9%, which differed from the statutory
rate of 21% primarily due to state taxes, the inclusion of income from certain
foreign operations and the effect of non-deductible stock-based compensation for
executive officers offset by U.S. federal research tax credits and excess tax
benefits from stock-based compensation.
Our income taxes may be subject to fluctuation during the year and in future
years as new information is obtained. This may affect the assumptions used to
estimate the annual effective tax rate, including factors such as actual results
differing from our estimates of pre-tax earnings in the various jurisdictions in
which we operate, which could impact the recognition of our deferred tax assets,
further benefits from stock option exercises, investments in our foreign
operations, the recognition or de-recognition of tax benefits related to
uncertain tax positions and changes in or the interpretation of tax laws in
jurisdictions where we conduct business.
Płynność i zasoby kapitałowe
Historically, we have funded our operations and investing activities primarily
through sales of our common stock, cash flow generated from operations and
various borrowing arrangements. For the past few years, we have generated cash
flow from our operations as our business has grown. As of April 1, 2023, we had
cash, cash equivalents and marketable securities of $257.1 million, which
consisted of deposits held at banks and major financial institutions and highly
liquid marketable securities such as U.S. government agency securities and
commercial paper.
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Działalność operacyjna
Net cash provided by operating activities was $8.1 million for the three months ended April 1, 2023 and consisted of net income of $9.6 million and non-cash charges of $18.6 million offset by cash flow decreases of $20.0 million reflected in the net change in assets and liabilities. Non-cash charges primarily consisted of stock-based compensation of $16.2 million and depreciation and amortization of $3.7 million. Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of a decrease in accrued liabilities of $12.3 million due to the payout of incentive compensation and payments related to our Calix ConneXions 2022 Customer Success and Innovation conference; an increase in inventory of $7.4 million to improve our responsiveness to our BSPs' subscriber demand; a decrease in accounts payable of $5.9 million due to the timing of inventory purchases; and an increase in prepaid expenses and other assets of $7.1 million mainly due to the renewal of a software contract and reclassification of contract assets from deferred revenue. These changes were partially offset by a decrease in accounts receivable of $1.6 million due to continued strong shipment linearity and an increase in deferred revenue of $11.0 million primarily due to our platform subscriptions and support contracts and reclassification of contract assets to prepaid expenses and other assets. Net cash provided by operating activities was $7.4 million for the three months ended April 2, 2022 and consisted of net income of $8.1 million partially offset by non-cash charges of $14.7 million and cash flow decreases of $15.4 million reflected in the net change in assets and liabilities. Non-cash charges primarily consisted of stock-based compensation of $10.5 million and depreciation and amortization of $3.9 million. Cash flow decreases resulting from the net change in assets and liabilities primarily consisted of an increase in inventory of $16.1 million to support revenue growth and to mitigate supply chain shortages and disruptions and an increase in accounts receivable of $2.7 million in line with our revenue growth. In addition, there was an increase in prepaid expenses and other assets of $6.7 million mainly due to advanced payments to supply chain partners and a decrease in total accrued liabilities of $2.0 million. These changes were partially offset by an increase in accounts payable of $8.2 million due to increased inventory purchases and an increase in deferred revenue of $4.0 million primarily due to our platform subscriptions and support contracts. Investing Activity For the three months ended April 1, 2023, cash used in investing activities of $3.3 million consisted of net purchases of marketable securities of $1.3 million and capital expenditures of $4.6 million, consisting primarily of purchases of test and computer equipment.
W okresie trzech miesięcy zakończonym 2 kwietnia 2022 r. środki pieniężne wykorzystane w działalności inwestycyjnej w wysokości 20,1 mln USD składały się z zakupów netto zbywalnych papierów wartościowych w wysokości 16,9 mln USD oraz nakładów inwestycyjnych w wysokości 3,2 mln USD, obejmujących głównie zakupy sprzętu testowego i sprzętu komputerowego.
Działania finansowe
Net cash provided by financing activities of $10.2 million for the three months ended April 1, 2023 primarily consisted of proceeds from the issuance of common stock related to our equity plans of $12.5 million. This was partially offset by repurchases of common stock of $1.2 million and payments related to a financing arrangement of $1.1 million. Net cash provided by financing activities of $5.9 million for the three months ended April 2, 2022 primarily consisted of proceeds from the issuance of common stock related to our equity plans.
Potrzeby w zakresie kapitału obrotowego i nakładów kapitałowych
Our material cash commitments include non-cancelable firm purchase commitments,
normal recurring trade payables, compensation-related and expense accruals,
operating leases and revenue-share obligations. We believe that our outsourced
approach to manufacturing provides us significant flexibility in both managing
inventory levels and financing our inventory. Furthermore, in July 2022, our
Board of Directors authorized a one-year stock repurchase program for up to $100
million of our common stock. During the three months ended April 1, 2023,
repurchases of $1.2 million were made under the program. Our stock repurchase
program does not require us to purchase a specific number of shares and may be
modified, suspended or terminated at any time.
We believe, based on our current operating plan and expected operating cash
flows, that our existing cash, cash equivalents and marketable securities will
be sufficient to meet our anticipated cash needs for at least the next twelve
months. If we are unable to generate sufficient cash flows or obtain other
sources of liquidity, we will be forced to terminate our repurchase program,
limit our development activities, reduce our investment in growth initiatives
and institute cost-cutting measures, all of which may adversely impact our
business and potential growth.
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Zobowiązania umowne i zobowiązania
Our principal commitments as of April 1, 2023 consisted of our contractual
obligations under non-cancelable outstanding purchase obligations, operating
lease obligations for office space and a revenue share obligation. The following
table summarizes our contractual obligations as of April 1, 2023 (in thousands):
Payments Due by Period
Less Than 1 More Than 5
Total Year 1-3 Years 3-5 Years Years
Non-cancelable purchase commitments
(1) $ 361,680 $ 244,587
99.340 $ 11.394 $ 6.359 Zobowiązania z tytułu leasingu operacyjnego (2)
14,155 4,805 7,797 1,553 -
Revenue share obligation (3) 10,743 10,743 - - -
$ 386,578 $ 260,135 $ 107,137 $ 12,947 $ 6,359
(1) Reprezentuje zaległe zobowiązania do zakupu, które mają być dostarczone przez naszych zewnętrznych producentów lub innych dostawców. Patrz Nota 6, „Zobowiązania i zobowiązania warunkowe” w informacji dodatkowej do skróconego skonsolidowanego sprawozdania finansowego zawartej w części I, punkt 1 niniejszego raportu kwartalnego na formularzu 10-Q, aby uzyskać dalsze omówienie naszych zaległych zobowiązań do zakupu związanych z naszymi zewnętrznymi producentami.
(2) Future minimum operating lease obligations in the table above primarily include payments for our office locations, which expire at various dates through 2028. See Note 6 "Commitments and Contingencies" of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion regarding our operating leases. (3) Represents remaining payments related to a revenue-share obligation, including imputed interest associated with developed software product and related enhancements by an engineering service provider. See Note 5 "Balance Sheet Details" of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further discussion regarding our outstanding liability.
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