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.
Jeff Finkelstein, executive director of Advanced Technology at Cox Communications, is BBWN Radio's guest on May 24 at 1PM ET/10AM PT/6PM BST. During the show, he'll discuss network innovation, digital transformation and defining DOCSIS' future.
In keeping with the nation's ambitious Digital India project that seeks to reduce the digital divide and increase the digital economy, Nokia and non-profit service provider partner Digital Empowerment Foundation will create 500 smart villages across the nation.
We will explore several fiber network environments, common vulnerabilities, and the business impact of failures. Fiber networks are typically a combination of owned and leased fiber. Learn how to reduce MTTR by up to 60% when an event occurs and how to detect degradation before it generates a service impact. Fiber monitoring of leased fiber helps ensure that the responsible party is dispatched for repair and SLAs can be managed. We will discuss both in service and out of service monitoring. Learn about the opportunities to improve business results in the following environments:
Hyperscale datacenters- the business need for near 100% uptime
5G small cell combined with leased fiber - ensuring the SLA for leased fiber
Long haul and Metro dark and lit fiber monitoring - reducing MTTR and preventing damage
FTTX construction and service activation in the access or MSO network - accelerating time to revenue
Join us when Jeff Finkelstein, Executive Director of Advanced Technologies at Cox Communications, is BBWN Radio's guest for a wide-ranging conversation about the cable operator's strategic network direction, DOCSIS 3.1, digital transformation and more. Bring your curiosity and questions when our distinguished guest speaks with Broadband World News Editor Alison Diana on May 24 at 1 pm ET; 10 am PT; 6 pm BST.
In this edition of BBWN Radio, Matthias Mieves, head of New Business, Sales and Marketing for Connected Home at Deutsche Telekom, will join BBWN Radio Editor Alison Diana to discuss the smart home market, the role of broadband and why service providers should roll out the welcome mat for this profitable market.