Calix: Still No IPO

3:55 PM -- Calix Inc. (NYSE: CALX) is seeing revenue growth across the board -- in PON, in DSL, in active Ethernet, says VP of marketing Geoff Burke.

Hm. Maybe we should have made Calix an IPO/M&A finalist in the Leading Lights awards.

Kidding! We've given up on the mystical Calix IPO, at least for now. Burke confirmed to me yesterday that we're on the right track. One clue would be that he and CEO Carl Russo keep saying they don't want to go public. (See Calix IPO Still on Hold.)

Of those that did get nominated for "Top IPO/M&A Candidate," BroadSoft Inc. is running away with the vote in our reader poll. Check the candidates yourself, and please let us know what you think. Voting ends on Oct. 10 (tomorrow!) at noon Eastern time.

Burke, by the way, is amused by the GPON bashing that's going around lately. More on that later.

— Craig Matsumoto, West Coast Editor, Light Reading

paolo.franzoi 12/5/2012 | 3:29:50 PM
re: Calix: Still No IPO
The reason that Calix raised a small round earlier this year.

Pete Baldwin 12/5/2012 | 3:29:49 PM
re: Calix: Still No IPO Ah - I was unaware of that, I'm sorry to say. Thanks.

I've got a theory, based on a tip I've heard elsewhere, but I'll have to see what Calix says first.
Polder 12/5/2012 | 3:29:45 PM
re: Calix: Still No IPO I would be curious to hear that theory. I too have ben curious as to why they raised about $57M in August of 2007. This was according to a Lightreading story posted in January of 2008. According to the SEC filing, they actually raised just over $74M. You can read about that in a Telephony article from last August. From what I can see, Calix has raised between $300M to $350M since they were founded in 1999. Their investors must be a very patient group.

One theory to think about...Perhaps they had the same financial situation regarding revenue recognition from RUS projects that got Occam in hot water last year. They may have raised the additional money to comply with accounting rules regarding how RUS projects are recognized. They have also made some interesting committments to customers who deployed GPON while waiting for GPON availability. These committments could cost them a lot of money in updgrades if they have to honor them.

Funniest thing I heard in the past year was a comment at the FTTH meeting is Des Moines earlier this year. Calix had stacked a panel with customers (as we all do) to discuss their FTTH deployments. During the panel discussion, the Calix moderator asked one of the operators "what was the biggest surprise during the deployment?'
The customer responded that they did not imagine that they would have had to upgrade their chassis multiple times in a three year period. A classic case of asking a question without knowing the answer already...

I do know of at least one case where they approached another vendor about an acquisition but it was stock based, not a cash deal.

After nine years of waiting, their investors are awfully patient...if you look at ZHNE, TLAB, and OCNW, these are not the best of times for for someone like Calix to go public or to be acquired for any reasonable amount of money.

Calix is a marketing machine. It is a shame some of their technology does not live up to the hype.
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