Calix's Woes Will Continue Into Q4
Calix said Thursday that it now expects December-quarter revenues to be $88 million to $92 million, down from the $104 million analyst consensus tallied by Thomson Reuters . Earnings per share will be 5 to 9 cents, Calix officials said on Thursday's earnings call -- nowhere near the consensus of 21 cents.
The problem is that revenues from broadband stimulus wins are slow in coming -- very slow, possibly. Analysts mentioned on the call that there's talk of extending the American Recovery and Reinvestment Act (ARRA) project window to 2015, meaning it might take that long for some of the money to get to Calix.
Calix CEO Carl Russo stressed that it's not known what conditions would be attached to the extension or even if it would apply to all projects. But given the track record the ARRA has had so far, he's not optimistic. "I'm concerned many [projects] will drag out to that date, and it could be a higher percentage than not," he said on the call.
Last month, Calix told the world that ARRA delays would lead to a weak third quarter, and its earnings statement Thursday matched the predictions. Revenues for the quarter, which ended Sept. 24, were $83.7 million, and the company reported a net loss of $6.9 million, or 15 cents per share. Non-GAAP net income was 7 cents per share; Calix had promised 7 to 9 cents. (See Calix Still Awaits Stimulus Funds.)
Separately, here's a blast from the past: Calix officials said they're still awaiting Osmine certification in order to sell equipment into the former Qwest. (For a memory jogger from 2000, see Telcordia's Osmine Goldmine.)
That matters because CenturyLink Inc. (NYSE: CTL), which has been a Calix customer, is spending money -- but it appears to be concentrating on Qwest territory, said Calix CFO Michael Ashby. Calix expects to get its certification in the second quarter of 2012.
— Craig Matsumoto, West Coast Editor, Light Reading