Calix, Inc. reported significant financial challenges in its third quarter of fiscal 2024, with revenues declining sharply compared to the same period in the previous year. For the three months ended September 28, 2024, the company generated revenue of $200.9 million, a decrease of 24% from $263.8 million in Q3 2023. The decline was attributed to reduced spending from large and medium customers, who slowed purchases as they reassessed investment priorities. Revenue from large customers fell by 63%, while medium customer revenue decreased by 42%. Small customer revenue also dropped by 15%, reflecting delayed purchasing decisions linked to government stimulus preparations.

For the nine months ended September 28, 2024, total revenue was $625.4 million, down 19% from $774.9 million in the same period of 2023. Gross profit for Q3 2024 was $110.0 million, down from $140.5 million a year earlier, with gross margins improving slightly due to a shift towards higher-margin sales. However, the company reported an operating loss of $10.9 million for Q3 2024, compared to an operating income of $15.9 million in Q3 2023. The net loss for the quarter was $4.0 million, contrasting with a net income of $17.0 million in the prior year.

Calix's total current assets as of September 28, 2024, were $585.0 million, a slight decrease from $598.0 million at the end of 2023. Current liabilities also decreased significantly to $129.9 million from $187.6 million, contributing to an increase in total stockholders' equity to $778.7 million, up from $719.0 million at the end of 2023.

The company has been actively managing its expenses, with reductions in sales and marketing, research and development, and general and administrative costs. Sales and marketing expenses decreased slightly, while R&D expenses also saw a reduction due to lower personnel and prototype costs. However, R&D expenses as a percentage of revenue increased, reflecting the ongoing investment in innovation.

Calix's cash and marketable securities totaled $287.6 million as of September 28, 2024, with cash provided by operating activities amounting to $53.0 million for the nine months ended September 28, 2024, compared to $41.3 million in the same period of 2023. The company continues to face challenges related to supply chain constraints and fluctuating market conditions, which have impacted its revenue and profitability.

About CALIX, INC

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