Calix Still Awaits Stimulus Funds
Calix Inc. (NYSE: CALX) lowered its third-quarter forecast on Tuesday, citing a tough economy, fiber shortages and "continued delays" in getting American Recovery and Reinvestment Act (ARRA) money.
The new projection is for revenues of $83 million to $85 million for the quarter that ends Sept. 24. Calix was previously saying $104 million.
Calix shares were down $1.05 (10%) at $9.21 each in midday trading.
Why this matters
No one expected the broadband stimulus plan to be a quick windfall for equipment vendors -- carriers first had to win grants and loans, then pick their suppliers. But the money flow is even slower than anticipated, which has to be a disappointment for investors who bought into access-equipment stocks.
Calix, for instance, says it won more than a 50 percent share of the awards, and it's been spewing announcements about wins all year long. But even the modest projections for late 2011 stimulus money coming to Calix -- in June, analyst Simon Leopold of Morgan Keegan & Company Inc. was thinking $60 million to $70 million -- turns out to be optimistic.
Calix has been trying to push down expectations. After the company's second quarter, officials gave a conservative estimate for stimulus revenues -- about $186 million. Leopold had earlier estimated Calix could collect $200 million to $300 million through 2013.
- Calix Cuts Q3 Outlook
- Calix Tallies $1B from Stimulus
- Cable Study Highlights Broadband Stimulus Waste
- Stimulus Winners Get Active With Ethernet
— Craig Matsumoto, West Coast Editor, Light Reading