Calix passed the half-billion-dollar revenue mark in 2017, reporting record fourth-quarter and annual earnings powered by the vendor's cloud and software platforms, as well as growing services revenue.
In unaudited results, Calix revenue for the quarter ended Dec. 31, 2017 reached $137.9 million, an increase of 4.6% compared with $131.8 million for the fourth quarter one year ago. For fiscal year 2017, the vendor reached revenue of 510.4 million, up 11.2% versus $458.8 million for the comparable 2016 period.
However, the non-GAAP net loss for Q4 2017 was $7.8 million, or ($0.15) per fully diluted share, compared to a non-GAAP net loss of $6.8 million, or ($0.14) per fully diluted share, for the fourth quarter of 2016. The non-GAAP net loss for fiscal year 2017 was $65.6 million, or ($1.31) per basic and fully diluted share, compared to a non-GAAP net loss of $7.0 million, or ($0.14) per diluted share for fiscal year 2016.
Last year, Calix restructured itself as part of its realignment to focus on cloud and software-defined access. The approximately $4.2 million in costs associated with that restructuring concluded in 2017, Calix said. It also wrapped up older service contracts that were devoid of much margin, said Carl Russo, president and CEO, during an earnings call on Tuesday. This frees up the company to pursue margin-richer services opportunities, he noted.
For the first quarter of this year, Calix estimates revenue of between $102 million and $108 million.
Growth occurred despite a slowdown in service providers' decision making, Russo said. Disruption -- including mergers and acquisitions, providers' demand for faster return on investment and the move away from legacy systems -- has caused some providers to postpone deployments of new software-defined access, cloud-based solutions, he said. But Calix expects those operators to advance within the next few months, certainly before the end of next quarter, Russo said. Verizon, for example, will launch its first commercial deployment of a single fiber-based access network in Tampa with Calix NG-PON2 solutions. (See Verizon, Calix Deploy Commercial NG-PON2 .)
CenturyLink was Calix' only customer that accounted for more than 10% of revenue -- representing 31% or $160 million. The purchasing slowdown associated with CenturyLink's acquisition of Level 3 should end soon, Russo said, as CenturyLink decides on its infrastructure and technology merger strategies.
"I think it puts CenturyLink in quite an interesting position to make best use of all of their assets and it's not clear to me at all that there is a preference to do one investment over the other," Russo said. "I do think they're going to get more disciplined about, if you will, which tools in the toolkit they deploy where, but we'll see, but I actually am excited by that."
Calix is signing on new customers, both in North America and around the world, said Russo. These include telco and cable operators, large and small. Since Calix expects "flattish" growth this year from current customers including CenturyLink, Windstream and Frontier, it predicts new accounts will deliver growth, wrote George Notter, telecom and networking equipment analyst at Jeffries LLC.
"Despite tough customer trends and headwinds, Calix still expects revenue growth this year. However, we think any continued revenue growth is becoming more reliant on new customers like Verizon and Cable MSOs," he wrote. "Considering existing customer headwinds and uncertain timing and ramp of new customers, we have a slightly more cautious outlook for 2018 revenue growth vis-ŕ-vis company guidance."
Calix, however, points to competitive pressures, consumer demand and other pressures forcing operators to act or face obscelesence.
"While many communication service providers are working hard to shift their business models, let's be clear, outdated legacy models will struggle to succeed in this new world and may not even survive," said Russo. "The winning communication service providers of the future will provide a sensational subscriber experience via an infrastructure that is always on, can be enhanced at a DevOps pace and is intelligent enough to run itself; and they must have the analytics to create and market new offerings to monetize their investments in the network."
More than a half-million Irish residents expected to have fiber broadband by 2020. But Ireland's National Broadband Plan has not even begun — and government officials today postponed any agreement again.
In a new report and searchable database, Broadband Now discovered fiber is the is the least expensive technology powering subscribers' connections. But the poorest, most rural residents pay the most for connectivity, regardless of underlying infrastructure.
As Vice President of Global Healthcare at AT&T, Maria Lensing oversees the telecommunications operator's technology and professional services offerings across the spectrum of medical providers, from solo practitioners and walk-in clinics to giant hospital chains, medical-device vendors and consulting firms. Lensing also sees more interest from traditional service providers -- cable and telecom operators looking to expand or build relationships with their own medical communities, perhaps as an adjunct to smart-home successes or standalone.
Lensing, who took on this role almost a year ago in May 2018, oversees both the sales and technical teams responsible for developing growth initiatives for AT&T's Global Healthcare business -- including products, services and industry-specific solutions. She also very actively promotes business minority inclusion, education and female empowerment programs and has been recognized both within and outside AT&T. Some awards she's received include "Top 40 Under 40" and "Super Woman in Business" from the Memphis Business Journal.
Join Maria Lensing, VP of Global Healthcare at AT&T, on Tuesday, April 23 at 12:00 p.m. ET / 9:00 p.m. PT, when she's the guest on BBWN Radio, hosted by Broadband World News Editor Alison Diana. Register now!
So far, the agenda includes a discussion of technologies such as fiber and 5G; defining the needs and solutions for a widely diverse range of customers; partnering for success in a typically slow-moving, budget-constrained market; learning and dispersing best practices from other verticals and within other business groups; promoting diversity and female empowerment when so many say they're doing so but so little has changed; and what she hopes to accomplish in another year in this role.
Register and post your questions for Maria on BBWN Radio's easy-to-use chat board. We will get to as many questions as possible. Please post questions before and during the broadcast. Once you've registered, you will be led to the chat board page. Talk to you on April 23!
Tune in to Broadband World News Radio on February 14 at 11 a.m. ET / 8 a.m. PT / 4 p.m. UK when John Isch, Practice Director of the Network and Voice Center of Excellence at Orange Business Services, discusses use cases, ROI and misconceptions of software-defined wide-area networks, virtualization and cloud.
Just when you thought the answer to your next technology direction question was clear, the noise around multiple new technology options fills the Internet and airwaves. Multiple 5Gs are being deployed; there's CableLabs' 10G initiative; the ITU and IEEE are toiling around 50G PON – and we haven’t even talked about Wi-Fi6 yet! Is any of this real, do you have to pay attention or can you just let the dust settle and then decide?
Since waiting is often not the best option, let’s demystify technology options, their impact on your business, and how to prepare for whatever the future brings.
In this webinar, Service Providers will learn:
Current state of 5G and how it affects everyone, not only mobile network providers.
Latest technologies being developed and how they will benefit their networks and subscribers.
How to prepare their networks for the future – whatever it may hold.