Calix, Inc. (CALX) has reported a 31.02 percent plunge in profit for the quarter ended Sep. 24, 2016. The company has earned $0.64 million, or $0.01 a share in the quarter, compared with $0.92 million, or $0.02 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.13 million, or $0.12 a share compared with $8.26 million or $0.16 a share, a year ago.
Revenue during the quarter grew 7.92 percent to $121.19 million from $112.30 million in the previous year period. Gross margin for the quarter contracted 311 basis points over the previous year period to 44.18 percent. Total expenses were 99.39 percent of quarterly revenues, up from 99.22 percent for the same period last year. That has resulted in a contraction of 17 basis points in operating margin to 0.61 percent.
Operating income for the quarter was $0.74 million, compared with $0.88 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $6.22 million.
"Demand for Software Defined Access (SDA) and Calix AXOS systems, software, and services drove our better than expected 8% year-on-year third quarter revenue growth and produced earnings at the upper end of expectations," said Carl Russo, Calix, Inc. president and chief executive officer. "We continue to see strong interest from new and existing customers both for our established and our recently introduced products, including our AXOS E-Series systems and Compass cloud services," added Russo.
Operating cash flow turns positive
Calix, Inc. has generated cash of $5.26 million from operating activities during the nine month period as against cash outgo of $1.19 million in the last year period.
Cash flow from investing activities was $14.81 million for the nine month period as against cash outgo of $1.43 million in the last year period.
The company has spent $11.68 million cash to carry out financing activities during the nine month period as against cash outgo of $9.73 million in the last year period.
Cash and cash equivalents stood at $31.76 million as on Sep. 24, 2016, down 12.24 percent or $4.43 million from $36.19 million on Sep. 26, 2015.
Working capital declines
Calix, Inc. has witnessed a decline in the working capital over the last year. It stood at $104.60 million as at Sep. 24, 2016, down 19.94 percent or $26.04 million from $130.64 million on Sep. 26, 2015. Current ratio was at 2.24 as on Sep. 24, 2016, down from 2.97 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 74 days for the last year period. Days sales outstanding were almost stable at 37 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 27 days for the quarter compared with 65 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 27 for the same period last year.
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