Why Calix Inc (NYSE: CALX) stock is going gangbusters today

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Calix Inc (NYSE: CALX) stock surged over 11.4% on 22nd July, 2020 (as of 11:18 am GMT-4 ; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. The company’s non-GAAP profitability for the second quarter of 2020 grew by $9.1 million from a net loss of $0.6 million to a net income of $8.5 million. The company has added 18 new customers in the second quarter from all segments of the market. The company’s Calix Cloud revenue rose by more than 60% compared to the year ago quarter. Second quarter was the strong quarter for the EXOS platform with systems shipments up more than 60% year over-year and revenue up more than three-fold as customers increasingly decide to implement the Revenue EDGE solution to deliver a superior broadband experience for their subscribers.  AXOS platform shipments rose by more than 70% compared to the year ago quarter as customers strive to increase bandwidth on their networks. The company ended the second quarter of 2020 with cash of $50.6 million, which represents a sequential increase of $4.4 million. The sequential increase in the cash was mainly due to the positive operating cash flow of $2.7 million and proceeds from equity-based employee benefit plans of $9.2 million partially offset by lower borrowing of $4.0 million on the line of credit and capital expenditures of $2.8 million.

CALX in the second quarter of FY 20 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents. The company had reported the adjusted revenue growth of 19 percent to $119 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $112.61 million. Systems revenue for the second quarter of 2020 grew 19% compared to the year ago quarter due to strong demand for the Calix Cloud, EXOS and AXOS platforms along with near-term demand for the legacy systems as service providers respond to increased demand on their networks. The revenue from large customers was 21% of total revenue in the second quarter of 2020 and rose by 27% compared to the year ago quarter mainly due to greater shipments to Verizon and CenturyLink. The company’s non-GAAP gross margin expanded by 360 basis points year over year during the second quarter.

For the third quarter of FY 20, Calix expects EPS to be in the range of $0.10-$0.14, versus the consensus of $0.09. Q3 2020 revenue is expected to be in the range of $127-131 million, versus the consensus of $120.16 million.

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