Petaluma, Calif. -- Calix today announced unaudited financial results for the first quarter 2018, sharing them as a letter to stockholders to the investor relations section of its website instead of via a traditional press release.
The letter, available in Calix' investor relations section of its website, includes all first-quarter financial results and supplemental information.
Quoting from the letter:
The ongoing wave of disruption sweeping across the communications space is unprecedented in our experience. We see traditional business models being completely disrupted as service providers of all types learn to adapt to the needs of the device-enabled subscriber.
Our vision is focused on providing the platforms, services and products that enable innovative service providers to create services at a DevOps pace and provide their subscribers with an exceptional experience. Service providers achieve this objective by building their infrastructure and service offerings on platforms.
We believe with Calix Cloud, EXOS and AXOS, we are positioned to win by providing the industry with the only solutions that enable innovative service providers to create services at a DevOps pace.
This industry disruption, however, has created challenges for predictability in customer spending patterns. For example, during the quarter, our largest customer continued to work through a significant acquisition, with new strategies and processes that in turn are disrupting their spending patterns. 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.
Overall results in the quarter were mixed relative to expectations as revenue was impacted by slower spending in the quarter by several customers partially offset by a strong quarter with our smaller, regional customers. New product and regional mix helped drive overall gross margins above expectations, while operating expenses were higher than expected due to the timing of certain restructuring actions, on both a GAAP and non-GAAP basis. This led to a net loss at the low end of expectations.
Systems revenue increased 2% compared to the year ago period. We saw continued traction with our AXOS and Calix Cloud platforms overcoming declines in traditional systems. In addition, we faced a challenging comparison with the year ago quarter as we substantially completed a major turnkey network improvement project in the first quarter last year. Services revenue was down more than 70% from the year ago period.
Read the rest of Calix results and the letter to shareholders here.
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