august 2016 calix investor presentation
TRANSCRIPT
August 2016
1
This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements about our development of new products and product features; our anticipated growth and growth drivers; our future financial condition and results of operations; our future business, operational and financial performance; and the success and/or market adoption of our products and solutions. We have based these forward-looking statements on our current expectations, assumptions and projections. Our actual results or actions may differ materially from those projected in forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and factors that could cause results to differ materially as described in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Except as may be required by law, Calix, Inc. undertakes no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
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3
1.
2.
3.
4.
Calix at a Glance
Value Shift from Hardware to Software
The Access Market Opportunity
Financials Update
5. Appendix
Calix at a Glance
4
2010 2011 2012 2014 2015
• IPO on NYSE • Occam acquisition
• EMEA and Australia expansion
• Ericsson fiber access products acquisition
• Ericsson global reseller agreement
• Launched Open Link Cable
• Introduced GigaCenter
• Introduced AXOS platform
• Launched G.fast and NG-PON2 products
• Expanded GigaCenter platform
Serving over 1,200 customers in more than 70 countries
5
22%
66%
12%
Customer Mix - 2015
Tier 1 Tier 2/3 International
Data Center Outside Plant
Broadband Aggregation
Optimization
Success-based Pay-as-you-grow Architecture
Subscriber Edge
Technology & Service
Optimization
E3-48C
716EE7-2
E7-20
E5-48
E5-216F
GigaFamily
6
E3-8G
Value Shift from Hardware to Software
7
The World’s Most Advanced Operating System for Access Networks
8
9
Typical NOS Architecture� Application enhancements require
frequent base code changes
� No formalized programming interfaces (APIs)
� Private/Proprietary kernel Extension
� Large diverse systems withopposite needs
� Stateless modules
� No object model
� Deep integration with ASIC/SiliconAccelerating
rate of change
Spaghetti
OS
ServicesStacks
NativeApps
On-box
Off-box
Applications
ServicesModules
Pristinebase gated
OS
Accelerating rate of change
AXOS Infrastructure
MODULES
Compass/OSS/IT Integration
REST SNMPNETCONF /
YANGCLI
HARDWARE ABSTRACTION LAYER
Multi-Service Protocols
OAM Timing Layer 3 Protocols Host Services Open Flow
Topology & Discovery Protocols
Layer 2 ProtocolsMulticast Protocols
Traffic Management
Performance Monitoring
QoS ManagerPlatform
Configuration and Upgrade
Diagnostics Syslog
OF Config
SERVICE ABSTRACTION LAYER/TRANSPARENT MOPS
Merchant Silicon / New Technology
� Structured like a disaggregated model
� Formalized programming interfaces (API)
� AXOS isolated from physical layer
10
FAST. Time to Revenue
� Speed of New Features. Individual software components are containerized which simplifies adds /deletes /changes and eliminates the need to constantly re-test the entire OS, thus maximizing reuse, while leveraging industry standards and open source software
� Speed of New Products. The unique hardware and software abstraction layers (HAL / SAL) preserve software independence from the underlying hardware and allow rapid development for any new access technology
ALWAYS ON. Resilient
� Eliminates maintenance windows through the live upgrade functionality
� Minimizes downtime using self-diagnosis, self-healing and process auto-restart
� Provides unprecedented visibility into application performance via monitoring and streaming data off the systems to feed third-party or open source monitoring tools
SIMPLE. Operational ease and flexibility
� Plugs into any open standard orchestration and management solution because it supports dynamic “state” manipulation through standard, open interfaces
� Portable across the network with common, stable field deployed components
Rapid delivery of new services, superior customer experience and unparalleled reliability
11
Controlled environment
Short lifecycle / Easy to replace
Partially to fully exposed environments
Long lifecycle / Difficult to replace
Data Center Access NetworkData Center Access Networkvs.
12
The Access Market Opportunity
13
Source: Infonetics, Morgan Stanley Research, UBS Research, Barclays Research, Company estimates
14
15
• 10 percent of all Americans (34 million people) lack access to 25 Mbps/3 Mbps service
• Wide disparity between urban and rural subscribers
• 4 percent of urban Americans lack access to 25Mbps/3Mbps service
• 39 percent of rural Americans lack access to 25 Mbps/3 Mbps service
• US broadband access ranked 16th out of 34 countries
• Universal Service Fund transitioned to Connect America Fund to accelerate broadband penetration
Source: FCC Broadband in America (January 2015)
Source: Morgan Stanley Research, Barclays Research, Nielsen Global Digital Landscape Report March 2015, Nielsen Total Audience 4Q14 Report,
Comscore
16
COPPERFIBERWIRELESSCABLE
Unified Access
Bandwidth on demand
Transparent quality of experience
VDSL2Unlicensed Spectrum
Wi-Fi 4x4
5G / WiFi
GPONEPON
XGPON-1
NGPON2
DOCSIS 3.0
CCAP
G.fast A2Unmatched subscriber experience
G.hnXGS-PON
CommunityWi-Fi
G.fast A1HotSpot 2.0Remote OLT
DOCSIS 3.1
FTTH
17
Gigabit experience
DOCSIS 3.024 Bonded
Gigabit GPON DOCSIS 3.1 (initial)
10000
Gigabit FTTH
10G PONXGS/NG-PON2
…
10G XGS/NG-PON2
18
Lower Operating Costs
Source: RVA LLC: North American FTTH Accelerates, (Q4 2014), RVA LLC North America FTTH Progress and Impact 2015 (June 2015), Google Fiber Kansas City, Bernstein Proprietary Census. Survey conducted by Haynes and Company (May 2014)
Estimated Operating Expense Savings
High Customer Take Rates
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20
Cincinnati Bell continues to see benefits from fiber rollout
Source: Cincinnati Bell (September 2014)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
100% Aerial/0% MDU
100% Aerial/20% MDU
50% Aerial/0% MDU
50% Aerial/50% MDU
Non-Electronics/Sub Electronics/Sub
Source: Suburban FTTP Network Scenarios, Telecom & Networking Equipment, The FTTP Renaissance,
Implications for Vendors – Jefferies Group LLC May 6, 2015
Electronics represent ~15-25% of the total capex cost per unit served in a fiber deployment after initial build costs
21
• Calix is a leader in G.fast technology as the first company in the world to publicly demonstrate a true gigabit experience via bonded G.fast over copper at Broadband World Forum 2015 with speeds up to with 1.5 Gb/s at 250m
• G.fast solutions are ideally suited for short loops < 500 m and speeds from 150Mb/s to >1 Gb/s
• Per U.S. Census data there are over 34 million multi-tenant housing units in the U.S. (per 2013 ACS) with an estimated more than 50% of these units built before 1980
• Aged residential and commercial units are characterized by difficulties in riser access and restricted building access
• G.fast provides fiber-like broadband speeds when fiber is not available
MDU
Riser
GPON/GE
G.fast
22
Financials
23
($ in millions, except per share amounts) Actual Guidance
Revenues $107.4 $104.0-$108.0
Non-GAAP gross margin 47.5% 46%-47%
Non-GAAP operating expenses $53.0* $52.0-$53.0**
Non-GAAP EPS – excluding Occam litigation $0.02 ($0.04) – $0.00
Non-GAAP EPS – including Occam litigation ($0.04) ($0.09) – ($0.05)
Cash flow from operations $0.1 Negative
24
* Includes approximately $2.8M of Occam litigation-related expenses** Included approximately $2.4M of Occam litigation-related expenses
Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website
$40.0
$42.0
$44.0
$46.0
$48.0
$50.0
$52.0
$54.0
3 Q 1 4 4 Q 1 4 1 Q 1 5 2 Q 1 5 3 Q 1 5 4 Q 1 5 1 Q 1 6 2 Q 1 6
OP
ER
AT
ING
EX
PE
NS
ES
IN $
M
25
Revenues +8% y/y
� 2 > 10% customers
� Growth across customers, platforms and geographies
Non-GAAP gross margins of 47.5%
� Favorable product and customer mix
� Offset by continued ramp of turnkey network improvement project
Non-GAAP operating expenses within guidance
� R&D increase to support growth initiatives
� Litigation expense higher than expected
Non-GAAP EPS above guidance
� Leverage from higher sales and gross profits
� Non-operating items in line with expectations
($0.15)
($0.10)
($0.05)
$0.00
$0.05
$0.10
$0.15
$0.20
3 Q 1 4 4 Q 1 4 1 Q 1 5 2 Q 1 5 3 Q 1 5 4 Q 1 5 1 Q 1 6 2 Q 1 6
NO
N-G
AA
P E
PS
44.8%
48.1%
49.2%
51.0%
49.3%
46.5%
48.1%47.5%
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
Gross Margin (%)
$60.0M
$70.0M
$80.0M
$90.0M
$100.0M
$110.0M
$120.0M
2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Domestic Revenues International Revenues
Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website
26
Revenues +8% y/y
� Growth across customers, platforms and geographies
� Benefit from ramp of turnkey network improvement project
Non-GAAP gross margins of 47.8%
� Less favorable product and customer mix
� Accelerated ramp of turnkey network improvement program
Non-GAAP operating expenses +5% ex-litigation
� Hiring to support growth initiatives
� Litigation expenses drove ~50% of total y/y increase
Non-GAAP EPS of ($0.13) $0.00 ex-litigation
� Higher revenues offset by litigation expenses and lower gross margins
� $0.13 drag from litigation expenses
45.2%
47.9%
46.9%
50.1%
47.8%
2012 2013 2014 2015 2016
(7.0%)
17.5%
(0.6%)
3.5%
8.2%
5.9%
16.7%
3.4%
15.9%
9.6%
13.6%
5.3%
2012 2013 2014 2015 2016
1H Revenue (% change)
Operating Expenses (% change)
Operating Expenses ex-litigation (% change)
$0.05
$0.16
$0.07
($0.00)
($0.13)
$0.03
($0.00)
($0.15)
($0.10)
($0.05)
$0.00
$0.05
$0.10
$0.15
$0.20
2012 2013 2014 2015 2016
EPS EPS ex-litigation
$100.0M
$120.0M
$140.0M
$160.0M
$180.0M
$200.0M
$220.0M
2012 2013 2014 2015 2016
Domestic Revenues International Revenues
Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website
$88.1M
$112.0M
$97.8M$99.5M$93.9M
$73.6M
$64.3M$64.2M
$0.0M
$20.0M
$40.0M
$60.0M
$80.0M
$100.0M
$120.0M
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
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Cash of $64.2M
� Decline y/y due to completion of $40M repurchase authorization in Q1 2016
� $50M line of credit expiring September 2018 remains undrawn
Inventory velocity improving
� Focus on key platforms
� Increased commonality of critical components
Positive operating cash flow
� Operating cash flow generation of $0.1M
� Solid revenue linearity
� Focus on working capital velocity
Non-GAAP cash conversion cycle improvement
� Inventory velocity improves by 10 days
� Linearity and key focus on working capital
101 Days
91 Days
113 Days108 Days
90 Days
104 Days107 Days101 Days
0 Days
20 Days
40 Days
60 Days
80 Days
100 Days
120 Days
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3.0 x
3.2 x
3.4 x
3.6 x
3.8 x
4.0 x
4.2 x
4.4 x
4.6 x
4.8 x
5.0 x
$37.5M
$39.5M
$41.5M
$43.5M
$45.5M
$47.5M
$49.5M
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
Inventory
Inventory Turns (annualized)
$15.1M
-$2.5M
-$11.9M
$5.0M$5.1M
-$4.5M
$5.3M
$0.1M
-$15.0M
-$10.0M
-$5.0M
$0.0M
$5.0M
$10.0M
$15.0M
$20.0M
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website
Revenues $115-$119M
Non-GAAP gross margin 45.5-46.5%
Non-GAAP operating expenses – excluding litigation $53.0-$54.0M
Non-GAAP operating expenses $48.5-$49.5M*
Non-GAAP EPS– excluding litigation ($0.01) – $0.03
Non-GAAP EPS $0.08 – $0.12*
Cash flow from operations Negative
28
*Includes $4.5M (or $0.09 per share) in expected settlement proceeds for Occam litigation
Please refer to the reconciliations of Non-GAAP to GAAP financial measures in the appendix and on the Investor Relations section of our website
29
Industry and location no longer the key distinction between customers
22%66%
12%
2015 Customer Mix
Tier 1
Tier 2/3
International
40%60%
Target Customer Mix
Small-to-medium customer
Large customer
30
($ in millions, except per share amounts) 2015 Long-TermTarget
Revenues $407.5 $600.0
Non-GAAP gross margin 49.0% >50%
Non-GAAP operating expenses (%) 47.4% 38-42%
Non-GAAP operating margin 1.5% >10%
Non-GAAP EPS $0.12 >$1.25
Predictable, profitable long-term growth
Reaccelerated top-line growth rate
Increased leverage from Operating Platform investments
Accelerated rate of change across industry
Demand drivers remain intact
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Q&A
32
Appendix
33
PARTNERSPARTNERSSALESSALESENGINEERINGENGINEERING
LEVERAGE
� Solve a hard problem once
� Reuse successful components
� Leverage silicon innovation
� Can integrate Open Source value
CUSTOMERSCUSTOMERS
VALUE
� ConsistentBehavior
� Service Resiliency
� Workflow Simplicity
� Upgradability( features + fixes)
� Reduce OPEX
PORTFOLIO EFFECT
� Cross-selling and pull-through sales
� Sell once, train once
� Solution DeliveryEnd to End
� Reduce Cost of Sales
INTEGRATION
� Tighter integration
� Broader opportunities
� Round out the portfolio
� Solution Ecosystemversus largervendors
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Infrastructure Layer
Protocol Framework Layer
Protocol and Services Layer
User Interface Layer
Policy and Management Layer
Hardware Abstraction Layer
AXOS
Merchant Silicon / New Technology
Decoupled hardware and software, loosely coupled components
� Simplistic 3-layer model transformed to fine-grained independent software components abstracted from the physical layer
� Support for 3rd party components with internal and external APIs
DATA PLANE
CONTROL PLANE
MANAGEMENT PLANE
D1 D2 D3 D4
C1 C2 C3 C4
B1 B2 B3 B4
A1 A2 A3 A4
35
Expanded Revenues
•New Products & Markets
•Focus on NFV & SDN
Opportunity
Increased Gross Profit
•Consistent Gross Margin
Expansion
•Funds R&D
R&D Investment
•Operating System
•Access Solutions
Long-Term Operating
Profit Growth
G.fastAXOS
36
“Strategic revenues were up more than 25%, compared to the second quarter of 2015 as our fiber expansion continues to drive favorable returns... as we continue to transition customers from legacy-bases copper services to more strategic-based fiber offerings…Our customers' response to our fiber-based products has been outstanding. As video content consumption evolves and demand for increased bandwidth speeds accelerates, it is important for us to remain connected to our customers and to react accordingly to their changing video and data needs.” August 4, 2016
"FiOS total revenue grew 3.7%. FiOS revenue was strong, even with the work stoppage and a high prior-year comparable pay-per-view fight event. The growth in FiOS is driven by a higher customer base and the demand for higher Internet speeds. Approximately 11% of our FiOS Internet base has opted for speeds of 100 megabits or greater…We believe we have an opportunity to further penetrate the markets we serve.” July 26, 2016
“We are upgrading our broadband network to establish a foundation for sustainable growth. This segment generates attractive cash flow by serving our largely rural footprint and the network enhancements we are making position us well competitively in our markets. During the quarter, we increased Internet availability across all speed tiers and can now offer premium Internet speeds at 50 meg and higher to approximately 23% of our footprint.” August 4, 2016
“We also are continuing to invest with a ‘network first’ focus on delivering higher broadband speeds and in the transformation and virtualization of our network infrastructure through the deployment of NFV and SDN technologies. We ended the quarter with more than 8.4 million addressable households and businesses with 40 Mbps or higher speeds, including 1.2 million GPON-enabled addressable units. We expect to reach 11 million 40 Mbps or higher, including 2 million GPON-enabled addressable households and businesses by year-end 2017.” August 3, 2016
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Source: Company reports
Latest QuarterWireline revenues +1% y/yFioptics revenues +34% y/y
Latest QuarterWireline revenues -2% y/yFios revenues +8% y/y
38
$2
,47
8
$2
,56
2
$2
,60
2
$2
,67
8
$2
,68
9
$2
,77
0
$2
,76
1
$2
,77
6
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
FiOS Rev ($M)
30.0%
32.0%
34.0%
36.0%
38.0%
40.0%
42.0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
FiOS Internet Penetration FiOS Video Penetration
0
100
200
300
400
5,900
5,950
6,000
6,050
6,100
6,150
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Broadband Subscribers ('000s) - LHS
Prism Subscribers ('000s) - RHS
$7
12
$7
27
$7
38
$7
58
$7
63
$7
73
$7
74
$8
00
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Consumer Strategic Rev ($M)
$3
7
$4
0
$4
2
$4
5
$4
9
$5
5
$5
8
$6
2
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Fioptics Rev ($M)
0%
10%
20%
30%
40%
50%
60%
70%
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
Fioptics availability
“Broadband access has become a necessity in our everyday lives. In the past few
years, broadband has brought sweeping changes in the ways Americans communicate, gather information, conduct commerce, and entertain themselves.”
STATEMENT OF FCC CHAIRMAN TOM WHEELER
“Broadband is not just a technology, it’s a platform for opportunity.”
STATEMENT OF COMMISSIONER JESSICA ROSENWORCEL
Source: 2015 BROADBAND PROGRESS REPORT AND NOTICE OF INQUIRY ON IMMEDIATE ACTION TO ACCELERATE
DEPLOYMENT, FCC, January 9 2015
39
Source: Telecom & Networking Equipment, The FTTP Renaissance, Implications for
Vendors – Jefferies Group LLC May 6, 2015
40
14
31
43
65
76
100
122
131 132 134
0
20
40
60
80
100
120
140
160
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
*Additional customer deployments from Calix customers have been secured but not yet announced.
Totals: 134 gigabit deployments (as of July 11, 2016)States: 43Outside U.S.: 2 Canadian provinces and 4 other countries
Calix Gigabit Deployments
41
42
Source: NTCA 2015 Broadband/Internet Availability Survey Report, June 2016Survey responses 131 (22% of NTCA membership)
41%
45%
55%
30%
35%
40%
45%
50%
55%
60%
2013 2014 2015
Percent of providers covering 50% of customer with FTTH
61%
67%
78%
40%
45%
50%
55%
60%
65%
70%
75%
80%
2013 2014 2015
Percent building FTTH to >50% of customers 3-years out
CAPEX $25KCAPEX $8KOPEX $1KOPEX $32K
Central
Office
Generic
Home
20 Mbps
MDU
1:32 split
BPON ONTs
+ 1 GPON system+ 32 GPON ONTs + 2 CO techs (day)+ 32 techs in field (simultaneously)
GPON ONTs
GPON OLTs
BPON OLTs
Total cash spend = $66K -- or $2,063 per home
43
CAPEX $4K
OPEX $120
Home
MDU
1:32 split
BPON OLTsGPON OLTsBPON OLTs
+ 1 GPON line card+ 1 GPON OIM- 1 BPON trade-in + 1 CO tech (2 hrs)+ 0 techs in field (no truck roll)
80 Mbps to 1Gbps
GPON ONTs
Auto-detect
PO ONTs
Central
Office
GPON OLTs
Total cash spend = $4.12K -- or $128 per home
44
45
46
47
* Based on litigation expense reimbursement with estimated timing of settlement accrual in Q3 2016
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016E*
Occam Litigation Expense ($M)
($1.7M) ($0.1M) ($0.6M) ($0.8M) ($3.4M) ($2.8M) $4.5M
Per share impact ($0.03) ($0.00) ($0.01) ($0.02) ($0.07) ($0.06) $0.09
48
($ in millions, except per share amounts)
(Unaudited) Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
GAAP Revenues $105,768 $111,633 $91,.038 $99,129 $112,297 $104,999 $98,375 $107,425
GAAP Cost of revenue $60,689 $60,192 $48,548 $50,840 $59,184 $58,462 $52,893 $57,419
Stock-Based Compensation (206) (206) (175) (211) (163) (160) (127) (183)
Amortization of Intangibles (2,089) (2,088) (2,088) (2,088) (2,088) (2,089) (1,663) (814)
Acquisition-Related Costs 0 0 0 0 0 0 0 0
Non-GAAP Cost of revenue $58,394 $57,898 $46,285 $48,541 $56,933 $56,213 $51,103 $56,422
GAAP Gross Profit $45,080 $51,441 $42,490 $48,289 $53,113 $46,537 $45,482 $50,006
GAAP Gross Margin 42.6% 46.1% 46.7% 48.7% 47.3% 44.3% 46.2% 46.5%
Stock-Based Compensation 206 206 175 211 163 160 127 183
Amortization of Intangibles 2,089 2,088 2,088 2,088 2,088 2,089 1,663 814
Acquisition-Related Costs 0 0 0 0 0 0 0 0
Non-GAAP Gross Profit $47,375 $53,735 $44,753 $50,588 $55,364 $48,786 $47,272 $51,003
Non-GAAP Gross Margin 44.8% 48.1% 49.2% 51.0% 49.3% 46.5% 48.1% 47.5%
Q3 2014 – Q2 2016 Cost of Revenue and Gross Profit
49
($ in millions, except per share amounts)
Unaudited Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
GAAP Operating Expenses $48,824 $54,294 $54,377 $54,054 $52,236 $56,272 $56,220 $55,887
Stock-Based Compensation (3,607) (3,692) (3,487) (4,130) (2,427) (3,052) (2,594) (2,785)
Amortization of Intangibles (2,552) (2,552) (2,552) (2,552) (2,552) (2,552) (1,701) 0
Acquisition-Related Costs 0 (978) (190) (52) (106) (24) (275) (76)
Non-GAAP Operating Expenses $42,665 $47,072 $48,148 $47,320 $47,151 $50,644 $51,650 $53,026
GAAP Net Income/(Loss) ($3,848) ($2,988) ($11,930) ($5,779) $922 ($9,546) ($10,729) ($5,826)
Stock-Based Compensation 3,831 3,898 3,662 4,341 2,590 3,212 2,721 2,968
Amortization of Intangibles 4,641 4,640 4,640 4,640 4,640 4,641 3,364 814
Acquisition-Related Costs 0 978 190 52 106 24 275 76
Non-GAAP Net Income/(Loss) $4,624 $6,528 ($3,438) $3,254 $8,258 ($1,669) ($4,369) ($1,968)
Basic Shares 51,048 51,300 51,732 51,950 51, 756 50,578 48,591 48,371
Diluted Shares 51,552 52,047 51,732 52,455 52,016 50,578 48,591 48,371
GAAP Income/(Loss) per share ($0.08) ($0.06) ($0.23) ($0.11) $0.02 ($0.19) ($0.22) ($0.12)
Stock-Based Compensation 0.07 0.07 0.07 0.08 0.05 0.06 0.06 0.06
Amortization of Intangibles 0.09 0.09 0.09 0.09 0.09 0.09 0.07 0.02
Acquisition-Related Costs 0.00 0.02 0.00 0.00 0.00 0.00 0.01 0.00
Non-GAAP Income/(Loss) per share $0.09 $0.13 ($0.07) $0.06 $0.16 ($0.03) ($0.09) ($0.04)
Q3 2014 – Q2 2016 Operating Expense and Net Income/(Loss)
� Additional information available at http://investor-relations.calix.com/ • Stock Information
• Financial Information
• Events & Presentations
• Corporate Governance
• Investor Resources
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