"Our mission is to connect everyone and everything. Calix' platforms empower our customers to build new business models, rapidly deploy new services and make the promise of the smart
home and business a reality. We are pleased to have exceeded consensus earnings by two
cents per share in the fourth quarter of 2018 as revenue from our platform offerings exceeded
our plan while our legacy revenue fell short of our expectations owing to late quarter softness by
a few long-standing customers.
The revenue mix was an indicator of our future as we continued
to make steady progress on our mission. We expanded our addressable market adding 20 new
customers in the quarter, bringing our total to 119 new customers for the full year 2018. Well
over half of these new customers came from emerging customer verticals.
With this continued
expansion of our customer base, the value of our all-platform product offerings continues to
In addition, coming out of ConneXions 2018, we enhanced and extended our product
portfolio and launched higher differentiable value service offerings, all while demonstrating
operating leverage despite lower than expected revenue.
All Platform Transformation Accelerates in the Quarter
Our relentless focus on the transformation of Calix into a communications cloud and software
platform, systems and services business yielded further progress in the fourth quarter. As we
stated in our prior letters to stockholders, we believe these achievements will manifest in
improved financial performance across four measurable metrics over the long term:
Gross margin expansion
Disciplined operating expense investment
Deliberate revenue growth
We are happy to report in the fourth quarter we continued to deliver on these objectives and
expect these metrics will continue to improve as our platforms increase as a percentage of our
total business. We will continue to take every opportunity to simplify our business and increase
our focus on our all-platform offerings.
Examples of our progress made in the quarter were:
Rapid growth of Calix Cloud as revenue and bookings from our cloud platforms more
than doubled on a full year basis.
Strong initial traction with our EXOS-powered next generation GigaFamily of products
with more than 100 customers in our early adopter program.
Continued growth in AXOS as platform license signings were up four-fold year-over-year.
Launch of new value-added service offerings for our customers including Remote
Monitoring Services allowing our customers to dramatically reduce operating costs by
driving down service outages as well as costly truck rolls without having to add additional
headcount or systems.
Riding the Wave of Disruption
Our vision is focused on providing the platforms and services 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.
The ongoing wave of disruption sweeping across the communications
space remains unprecedented in our experience. We continue to see traditional business
models being disrupted as service providers of all types learn to adapt to the needs of the
device-enabled subscriber. As the market continues to disrupt, the gap between subscriber
needs and service provider supply continues to grow. New service providers are being created
to address this unmet need and capital is being formed to support them. We see this pace
accelerating in the market and it is well aligned with our mission. And we see the pace of
existing providers transforming to address this need hastening as well. However, as they realign
their investments it can cause near-term variances in spending.
Regardless of type, when a
service provider chooses to own the subscriber experience, we are well positioned to help them
Our focus remains on finding like-minded customers regardless of their legacy type, size or
location. The pressure on our legacy business in this quarter was ample encouragement to
refine our efforts in ramping our all-platform offerings, aligning our investments and maintaining
strong discipline over our operating expenses. Over the long-term, we believe this focus will
drive continuous improvement in our financial performance. With that we are pleased to discuss
our fourth quarter 2018 results:
Please visit the Calix investor relations website at https://investor-relations.calix.com to view the fourth quarter 2018 financial results in our letter to stockholders, along with accompanying supplemental financial information.
A question and answer conference call to discuss these results with President and CEO, Carl Russo, CFO, Cory Sindelar, and Director of Investor Relations, Tom Dinges, will be held at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Feb. 5.
Interested parties can listen to a live webcast of the conference call by visiting the Calix Investor Relations website at . The conference call is also available via teleconference by dialing (877) 407-4019 or international (201) 689-8337 with conference ID# 13685537. The conference call and webcast will include forward-looking information.
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.