CALIX (CALX) saw its loss widen to $33.32 million, or $0.67 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $10.73 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter widened to $28.27 million, or $0.57 a share from a loss of $4.37 million or $0.09 a share, a year ago.
Revenue during the quarter grew 19.46 percent to $117.52 million from $98.38 million in the previous year period. Gross margin for the quarter contracted 1698 basis points over the previous year period to 29.25 percent. Operating margin for the quarter stood at negative 27.92 percent as compared to a negative 10.92 percent for the previous year period.
Operating loss for the quarter was $32.82 million, compared with an operating loss of $10.74 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $27.76 million.
"Revenues in the first quarter were above our expectations as activity accelerated in our turnkey network improvement projects and this led to overall revenue growth of nearly 20% year-over-year," said Carl Russo, Calix, Inc. President and chief executive officer. We continued our strategic investments to drive the transformation to Software Defined Access led by our AXOS platform and Calix Cloud," added Russo.
For the second-quarter, CALIX forecasts revenue to be in the range of $122 million to $126 million. The company forecasts diluted earnings per share to be $0.09. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.19 to $0.12.
For financial year 2017, CALIX projects revenue to grow at 10 percent. The company forecasts diluted earnings per share to be $0.40.
Operating cash flow turns negativeCALIX has spent $23.45 million cash to meet operating activities during the quarter as against cash inflow of $5.27 million in the last year period. Cash flow from investing activities was $0.43 million for the quarter, down 92.31 percent or $5.14 million, when compared with the last year period.
The company has spent $1.08 million cash to carry out financing activities during the quarter as against cash outgo of $13.05 million in the last year period.
Cash and cash equivalents stood at $26.32 million as on Apr. 01, 2017, up 23.18 percent or $4.95 million from $21.36 million on Mar. 26, 2016.
Working capital drops significantly
CALIX has witnessed a decline in the working capital over the last year. It stood at $68.67 million as at Apr. 01, 2017, down 30.30 percent or $29.85 million from $98.52 million on Mar. 26, 2016. Current ratio was at 1.47 as on Apr. 01, 2017, down from 2.52 on Mar. 26, 2016.
Cash conversion cycle (CCC) has decreased to 44 days for the quarter from 87 days for the last year period. Days sales outstanding went up to 43 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 72 days for the previous year period. At the same time, days payable outstanding was almost stable at 24 days for the quarter, when compared with the previous year period.
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