Calix Inc (NYSE:CALX), an appliance-based platform, cloud and managed services company, stock rallies 10.62% (As on April 22, 11:28:32 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings that beat analyst expectations and issued upbeat guidance. During the first quarter, the customers pulled forward demand as they expedited builds and upgrades to XGS PON and WiFi-7 after reducing the level of activity in the year prior. Unlimited Subscriber revenue increased by 15% and 27% from the prior quarter and year ago quarter, respectively. Meanwhile, Intelligent Access revenue decreased by 6% and 32% from the prior quarter and year ago quarter, respectively.
Further, at the end of the first quarter of 2025, the RPOs were $340.4 million, which is an increase of $14.6 million, or 4%, from the prior quarter and an increase of $95.2 million, or 39%, from the same quarter a year ago. Current RPO was $128.4 million, up 6% from $120.7 million at the end of the prior quarter and up 30% from $99.1 million at the end of last year.
Moreover, the company has also added 6 new Calix Cloud deployments, which include Engagement Cloud, Operations Cloud and/or Service Cloud. Calix Cloud allows the BXPs to benefit from the power of data-driven insights to drive best-in-class Net Promoter Scores. The managed services showed continued growth as 20 additional customers began deploying a managed service.
CALX in the first quarter of FY25 has reported the adjusted earnings per share of 19 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue decline of 2.7 percent to $220.24 million in the first quarter of FY25, beating the analysts’ estimates for revenue of $207.3 million. Though up by 6.9% from the previous quarter. Non-GAAP net income decreased $1.3 million when compared with $14.4 million from the same quarter last year due to higher operating expenses in part related to higher sales incentive compensation. Gross margin expanded to a record 56.2% on a non-GAAP basis, up 130 basis points YoY. The company generated $17.2 million in operating cash flow and repurchased 1.2 million shares during the quarter.
Calix also announced its board has authorized an additional $100 million for share repurchases, signaling confidence in its outlook.
Calix’s Q2 2025 outlook also topped Wall Street projections. The company expects adjusted EPS of $0.18-$0.24 on revenue of $221-227 million, compared to analyst estimates of $0.16 EPS and $211.1 million in revenue.