Company: CALX
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001406666-25-000016
Chunk: 47

Company: CALIX, INC
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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)(96,456)(102,141)Adjusted sales and marketing operating expenses (2)(51,590)(49,047)Adjusted research and development operating expenses (3)(38,899)(39,907)Adjusted general and administrative operating expenses (4)(19,335)(19,435)Other segment items (5)(20,043)(17,812)Interest income and other expenses, net3,091 2,500 Income taxes(1,797)(365)Net income (loss)$(4,787)$103 (1) GAAP cost of revenue adjusted for stock-based compensation and intangible asset amortization.(2) GAAP sales and marketing operating expenses adjusted for stock-based compensation.(3) GAAP research and development operating expenses adjusted for stock-based compensation.(4) GAAP general and administrative operating expenses adjusted for stock-based compensation.(5) Other segment items consisted of stock-based compensation expense and intangible asset amortization.

10.  Income Taxes

The following table presents income taxes and the effective tax rates for the periods indicated (in thousands, except percentages): Three Months EndedMarch 29,2025March 30,2024Income (loss) before income taxes$(2,990)$468 Income taxes$1,797 $365 Effective tax rate(60.1)%78.0 %The Company has historically recorded its interim period provision for income taxes by applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items. However, due to the level of forecasted provision for income taxes relative to the forecasted pre-tax income used in computing the effective tax rate, the effective tax rate is highly sensitive to fluctuations in pre-tax income and does not provide a reasonable estimate for income taxes in the interim period. As such, the Company has computed its provision for income taxes for the three months ended March 29, 2025 and March 30, 2024 using an actual year-to-date tax calculation. The Company plans to revert to applying a forecasted annual effective tax rate to year-to-date earnings and adjusting for discrete items once that method produces more reasonable results. The Company’s effective tax rate for the three months ended March 29, 2025 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes, the effect of non-deductible stock-based compensation for executive officers, excess tax expense from stock-based compensation offset by the favorable impact of U.S. federal research tax credits and the U.S. tax