Company: CALX
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0001406666-25-000016
Chunk: 48

Company: CALIX, INC
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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 impact of foreign operations.  The Company’s effective tax rate for the three months ended March 30, 2024 differed from the statutory federal corporate tax rate of 21% primarily due to state taxes and 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 months ended March 29, 2025, compared to $29.9 million for the three months ended March 30, 2024, on certain U.S. federal and state deferred tax assets that the Company believes are not more likely than not to be realized in future periods.

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The Company considered scheduled reversals of deferred tax liabilities, historic profitability, projected future taxable income, ongoing tax planning strategies and other matters, including the period over which its deferred tax assets will be recoverable, in assessing the need for and the amount of the valuation allowance. In the event that actual results differ from these estimates, or if the Company decides to adjust these estimates in the future periods, further adjustments to its valuation allowance may be recorded, which could materially impact the Company’s financial position and net income in the period of the adjustment.In December 2021, the Organization for Economic Cooperation and Development enacted model rules for a new global minimum tax framework (“Pillar Two”), and certain governments in countries which the Company operates have enacted local Pillar Two legislation, with an effective date from January 1, 2024. The Company currently does not expect Pillar Two to have a material impact on its financial statements.

11.  Net Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months EndedMarch 29,2025March 30,2024Numerator:Net income (loss)$(4,787)$103 Denominator:Weighted-average common shares outstanding used to compute basic net income (loss) per share66,027 65,338 Effect of dilutive common stock equivalents— 2,781 Weighted-average common shares outstanding used to compute diluted net income (loss) per share66,027 68,119 Net income (loss) per common share:Basic net income (loss) per common share$(