Telecommunications equipment provider Calix, with facilities in Petaluma, on Tuesday reported a net loss of $11.1 million in the first quarter but touted its continued shift toward offering more cloud-based platforms as a sign of better things to come.
The company’s announcement said movement toward cloud-based services has resulted in “our highest new customer acquisition in five years,”
As for the financials, the company reported quarterly results resulted in the net loss, equivalent to 23 cents a share, on revenue of $99.4 million, missing guidance of $102 million to $108 million. The net loss a year before was $33.3 million on $117.5 million in revenue.
Operating expenses, $53.2 million, also exceeded guidance of $49.5 million to $51.5 million. The “mixed” results also included a 2 percent increase in system revenues from a year before, with its cloud-based platforms gaining more traction versus declines in “traditional systems.” Much of that was in the area of small and regional operators.
“While we believe we are well placed to win in the long term, these challenges impacted our financial results this quarter and continue to limit our visibility for near-term revenue forecasting,” wrote Carl Russo, president and CEO, and Cory Sindelar, chief financial officer, in a letter to investors.
Quarter’s end saw cash and investments of $42.6 million, up $2.9 million over the prior quarter. Proceeds of $10.3 million from the sale of its outdoor cabinet company were offset by “operating activities” of $5.8 million and $1.9 million in new equipment purchases.
“We made steady progress towards our mission in the quarter, while the quarter was another example of the effects caused by the entire industry responding to device-enabled subscribers connecting to the cloud,” the executives wrote. “Innovative service providers are looking to Calix to provide the platforms, solutions and service to enable them to improve their subscribers’ experience — driving higher revenue, lower churn and increased ROI. As such, we believe we are well placed to return to profitability as we continue to drive towards our long-term financial model.”
The price of company's stock (NYSE: CALX) was $6.50 at the end of trading Tuesday, down 10 cents a share, or 1.5 percent.