Calix affirms revenue, gross margin targets

Calix still targets 10%-15% annual revenue growth with gross margin expansion of 100-200 basis points per year. The company said, "As we evolve and software grows as a larger percentage of our revenue, we are refining the target model for 2023 – 2025 that was shared during our Investor Day in February 2022. The slight changes include: 1) moving our target non-GAAP sales and marketing expense range to 18% – 20% of revenue from 17% – 19%, 2) modifying the non-GAAP research and development expense metric to 29% of gross profit from 30% of product gross profit as product and services gross profit will be combined going forward, 3) non-GAAP general and administrative expenses to 7% of revenue from 8% as our revenue has grown faster than the target financial model for the past three years and 4) lowering our non-GAAP income tax rate range to 25% – 27% of non-GAAP pretax income from 26% – 28%."