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

Company: CALIX, INC
Filing Date: 2025-04-22
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 fewer purchases in 2024 such that our revenue hit its lowest level since the second quarter of 2022 in the second quarter of 2024. Since then, our quarterly revenue has grown sequentially. The decrease in revenue in the small- and medium-customer segment was primarily due to the industry slowdown in 2024, caused by factors such as order normalization, consideration of the U.S. Department of Commerce National Telecommunications and Information Administration’s, or NTIA’s, Broadband Equity, Access and Deployment, or BEAD, program and evaluation of business models given relatively low subscriber attach rates. The increase in revenue in the large-customer segment was primarily due to a demand pull forward by a customer.

For the three months ended March 29, 2025, United States revenue was $211.2 million, or 96% of our revenue, compared to $210.1 million, or 93% of our revenue for the same period in 2024. International revenue was $9.1 million, or 4% of our revenue, for the three months ended March 29, 2025, as compared to $16.2 million, or 7% of our revenue, for the same period in 2024. The decrease in international revenue for the three months ended March 29, 2025, as compared to the same period in 2024, was mainly due to lower shipments to Europe and to a lesser extent the Americas outside the United States.

No customer accounted for more than 10% of the Company’s revenue for the three months ended March 29, 2025 and March 30, 2024.

Gross Profit and Gross Margin

The following table sets forth our gross profit and gross margin (dollars in thousands):

 Three Months Ended March 29,2025March 30,2024VarianceinDollarsVarianceinPercentGross profit$122,708 $122,577 $131 — %Gross margin55.7 %54.2 %

Gross profit was relatively flat comparing the three months ended March 29, 2025 to the corresponding period in 2024. Our gross margin increased by 150 basis points for the three months ended March 29, 2025, compared to the corresponding period in 2024, primarily related to the continued growth in our platform, cloud and managed services being a greater percentage of our total revenue.

Operating Expenses

Sales and Marketing Expenses

The