Calix Marks Notable Earnings Growth and Expands Customer Base in Q4
Calix, a prominent provider of cloud and software platforms, systems and services, has reported a significant increase in its fourth-quarter 2023 adjusted earnings. The company’s earnings per share escalated to 43 cents, reflecting a 26.5% rise from the previous year’s figures. The company’s net sales experienced an 8.3% year-over-year growth, culminating in $264.7 million.
The recent achievements of Calix are largely due to its robust portfolio of cloud and managed services, which have witnessed considerable growth, especially within the Broadband Service Providers (BSPs) sector. In the reported quarter, the company welcomed 17 new BSPs, concluding the year with a total of 56. Furthermore, 20 customers commenced deployments of one of the company’s managed services, thereby broadening its market reach.
A key segment of Calix’s offerings, the Revenue EDGE solutions, observed a remarkable revenue increase. Revenue from EDGE solutions soared by 23%, while Intelligent Access EDGE revenues experienced a 20% rise compared to the same period in the previous year. The company also celebrated the addition of nine new customer deployments for these services, in addition to seven new Calix Cloud deployments, which include Engagement Cloud, Service Cloud and Operations Cloud.
The United States continues to be the primary market for Calix, contributing to 94% of its revenues, which have seen a 12% increase year over year. Conversely, international markets accounted for 6% of revenues, witnessing a 31% decrease from the previous year. The financial well-being of the company is further indicated by its gross margin, which saw a significant improvement, reaching 54.1% from 51.6% in the year-ago quarter.
Operational expenses for Calix have risen, with sales and marketing expenses increasing by 10.7% to $52.7 million, research and development expenses up by 10% to $38.7 million, and general and administrative expenses growing by 13.2% to $18.6 million. The company has succeeded in maintaining a robust balance sheet, ending the year with $63.41 million in cash and cash equivalents.
Calix has provided guidance for the first quarter of 2024, projecting earnings per share to be in the range of 17 cents to 23 cents, with anticipated revenues between $225 million and $231 million. This outlook reflects the company’s sustained confidence in its business model and the ongoing demand for its services.
Calix’s performance in the fourth quarter highlights the company’s upward growth trajectory and its capacity to adapt to the changing requirements of the broadband services market. With a strong portfolio of cloud and managed services, the company has affirmed its dedication to innovation and customer satisfaction. It remains committed to providing high-quality services and further expanding its customer base, ensuring that it continues to fulfill the needs of an ever-evolving industry.
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