Calix, Inc. has recently released its 10-K report, providing an insight into its financial performance and business operations.
Business Description: Calix, Inc. provides cloud and software platforms, systems, and services to broadband service providers (BSPs) globally. The company's platforms, including Calix Cloud, Revenue EDGE, and Intelligent Access EDGE, gather and analyze data to deliver real-time insights for network operations, marketing, and customer support. * Calix serves approximately 1,600 active customers, ranging from smaller regional service providers to some of the world’s largest service providers.
Financial Metrics and Changes/Challenges: Revenue for the year ended December 31, 2023, was $1,039,593, marking a 20% increase from $867,827 in 2022. The revenue increase was primarily driven by strong shipments to a large customer, continued shipments from a new medium-sized BSP customer, and higher revenue from small and medium BSP customers expanding with Calix's platform and managed services. * The company's revenue is primarily derived from the United States, representing 91% of the total revenue in both 2023 and 2022.
Critical Accounting Policies and Estimates: Calix's revenue recognition involves recognizing revenue from sales of access and premises systems when products are shipped, while revenue from software platform licenses is generally recognized upfront. The company regularly monitors inventory on-hand and records write-downs for excess and obsolete inventory based on estimated demand for products and potential obsolescence of technology. * Calix evaluates supplier purchase commitments and records liabilities for excess and obsolete components based on estimated product demand and technology obsolescence.
In summary, Calix, Inc. has reported a significant increase in revenue for the year ended December 31, 2023, driven by strong shipments to key customers and expansion with small and medium BSP customers. The company's revenue continues to be primarily derived from the United States, and it maintains a focus on monitoring inventory and supplier purchase commitments to manage costs and inventory levels. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $34.31. For more information, read the company's full 10-K submission here.
