Company: CALX
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001406666-25-000008
Chunk: 132

Company: CALIX, INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 132
---
,516)(2)%Percent of revenue12 %10 %

The decrease in general and administrative expenses of $1.5 million in 2024 compared to 2023 was mainly due to a decrease in legal costs due to a settlement in 2023 of $3.3 million and lower outside services expenses of $2.9 million. These decreases were partially offset by increases in stock-based compensation of $2.0 million and personnel expenses of $1.6 million.

During 2024, general and administrative expenses as a percentage of revenue increased to 12% from 10% due to lower revenue compared to 2023. We expect our general and administrative investments to be fairly constant in absolute dollars in the near term and potentially decline as a percentage of revenue over time in relation to anticipated longer-term increased revenue.

30

Interest Income and Other Expense, Net

The following table sets forth our interest income and other expense, net (dollars in thousands):

Years Ended December 31,2024 vs 2023 Change20242023$%Interest income and other expense, net$11,388 $9,172 $2,216 24 %

Interest income and other expense, net increased by $2.2 million in 2024 compared with 2023 mainly due to a higher rate of interest earned on our cash, cash equivalents and marketable securities as well as a larger cash and marketable securities balance.

Income Taxes 

The following table sets forth our income taxes (dollars in thousands):

Years Ended December 31,2024 vs 2023 Change20242023$%Income taxes$(1,899)$5,432 $(7,331)(135)%Effective tax rate6 %16 %

During 2024, our current tax expense was $8.1 million, and our deferred tax benefit was $10.0 million. Our effective tax rate was lower than the federal statutory rate of 21% primarily due to the impact of stock-based compensation, foreign operations, valuation allowance and uncertain tax positions, offset by research and development tax credits and provision to return adjustments.

During 2023, our current tax expense was $6.1 million, and our deferred tax benefit was $0.7 million. Our effective tax rate was lower than the federal statutory rate of 21% primarily due to research and development tax credits and provision to return adjustments, partially offset by the impact of stock-based compensation and uncertain tax positions.

We continue to