Company: CALX
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0001406666-25-000035
Chunk: 56

Company: CALIX, INC
Filing Date: 2025-07-22
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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3,626)724 (5,423)359 Net income (loss)$(199)$(7,958)$(4,986)$(7,855)(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 EndedSix Months EndedJune 28,2025June 29,2024June 28,2025June 29,2024Income (loss) before income taxes$3,427 $(8,682)$437 $(8,214)Income taxes (benefit)$3,626 $(724)$5,423 $(359)Effective tax rate105.8 %8.3 %1,241.0 %4.4 %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 reliable estimate for income taxes in the interim period. As such, the Company has computed its provision for income taxes for the three and six months ended June 28, 2025 and June 29, 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 is reliably estimable.The Company’s effective tax rate for the three and six months ended June 28, 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 offset by the favorable impact of U.S. federal research tax credits, excess tax benefits from stock-based compensation and the U.S. tax impact of foreign operations.The Company maintained a valuation allowance of $30.6 million for the three and six months ended June