Calix expects to miss second quarter revenue guidance

The revenue slowdown several metro and long-haul systems providers have reported may now have hit the fiber to the home (FTTH) market. Calix, Inc. (NYSE: CALX), which specializes in FTTx gear, said yesterday that it expects revenue and non-GAAP earnings per share for the recently completed second quarter of 2012 won’t reach its previous guidance.

The revenue slowdown several metro and long-haul systems providers have reported may now have hit the fiber to the home (FTTH) market. Calix, Inc. (NYSE: CALX), which specializes in FTTx gear, said yesterday that it expects revenue and non-GAAP earnings per share for the recently completed second quarter of 2012 won’t reach its previous guidance.

In announcing the results of its fiscal first quarter, the company guided second quarter revenue to range between $93 million and $97 million, with non-GAAP earnings per share of between 7 and 11 cents per share. However, preliminary estimates for the quarter now indicate that revenue will be approximately $79 million, flat with the first quarter of 2012. Meanwhile, non-GAAP earnings per share will be 4 cents per share, up from 1 cent per share in the first quarter of 2012 but not to the level previously anticipated.

Calix management laid the blame for the guidance miss on softness in demand across multiple customer markets. Concerns about macro-economic conditions and regulatory uncertainty have combined to lower capital expenditures, they believe.

Nevertheless, management put the best spin possible on the news. "While we are clearly disappointed in these estimated results, we are encouraged by the progress we are making in building our international business, which saw a sequential increase in shipments, and by a relatively strong month in June for bookings for domestic customers," said Carl Russo, president and CEO of Calix.

The markets were not mollified. Calix common stocks lost 22% of their value in premarket trading, a figure that rose to 26% by 10:30 AM this morning.

The company will officially release results for the fiscal second quarter, which ended June 30, on July 31. Management expects to comment on its second quarter experiences and their potential impact on the company's third quarter results as well.



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