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Calix Still Awaits Stimulus Funds

Craig Matsumoto
9/27/2011

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.

For more



— Craig Matsumoto, West Coast Editor, Light Reading

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paolo.franzoi
paolo.franzoi
12/5/2012 | 4:52:33 PM
re: Calix Still Awaits Stimulus Funds


 


So, Boys and Girls...you have bought Occam.  You have major/exclusive positions in all the Tier 2/3 Wireline Telcos.  You hired the old-CALA team and they are running that business.  And yet, you still make less revenue than AFC and we are still awaiting profitability.


I wonder if Carl Russo still thinks he is smarter than anyone else.


 


seven


 

DCITDave
DCITDave
12/5/2012 | 4:52:33 PM
re: Calix Still Awaits Stimulus Funds


That said, what a miserable thing to have to factor government timing into your productivity/profitability.

DCITDave
DCITDave
12/5/2012 | 4:52:32 PM
re: Calix Still Awaits Stimulus Funds


Is Hootie & the Blowfish really that expensive?

NorCalBoy
NorCalBoy
12/5/2012 | 4:52:32 PM
re: Calix Still Awaits Stimulus Funds


Any and all questions to how smart the business is ran at Calix will be answered at their multi-million dollar users extravaganza in Las Vegas in a few weeks.   This year  features a private performance by Hootie and the Blowfish!  Yowza$ Yowza$ 

worli
worli
12/5/2012 | 4:52:31 PM
re: Calix Still Awaits Stimulus Funds


It is indeed ironic the these champions of capitalism, having made hundreds of millions in previous startups, are now dependent upon a bankrupt government's largesse, even as they march in lockstep with Sarah Palin and the tea partiers and rail vociferously against the very same government's aid to the less fortunate.


 


How does it feel?

cnwedit
cnwedit
12/5/2012 | 4:52:31 PM
re: Calix Still Awaits Stimulus Funds


Hootie is, the Blowfish come cheap.

mj42
mj42
12/5/2012 | 4:52:21 PM
re: Calix Still Awaits Stimulus Funds


I greatly enjoy the technical and market discussions on the light reading site. I hope it doesn't degenerate into the mindless political comments found on newsvine.


Just my opinion.

d333gs
d333gs
12/5/2012 | 4:52:07 PM
re: Calix Still Awaits Stimulus Funds


Thus this is not lost revenue  but rather delayed?


Anyone want to speculate on how CALX gets a  $186 million estimate and  analyst Simon Leopold of Morgan Keegan & Company Inc. had estimated Calix could collect $200 million to $300 million through 2013?

Pete Baldwin
Pete Baldwin
12/5/2012 | 4:52:05 PM
re: Calix Still Awaits Stimulus Funds


One possibility is that Calix is just being conservative, sensing that investors misunderstood the stimulus process and were expecting one big, immediate $500M payoff.


Another is that everybody just plain overestimated the benefit of these deals to Calix.

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