Calix sees Q1 EPS 17c-23c, consensus 38c

Sees Q1 revenue $225M-$231M, consensus $267.57M. The company stated in its quarterly letter to investors: “2024 will be a year of decision making for our customers as they are in the process of evaluating and finalizing their plans to apply for the tens of billions of government stimulus dollars. While this will affect our appliance shipments, our platform, cloud and managed services will continue with their robust growth. With this background and considering a few significant customers in 2023 are pausing their purchases in early 2024 as they re-evaluate their capital expenditures, our revenue guidance for the first quarter of 2024 is for revenue to be between $225M and $231M. We currently expect this will mark the low point for the year and believe we will grow sequentially thereafter. Due to the continued growth in our platform, cloud and managed services and the lower appliance revenue outlook, our non-GAAP gross margin guidance for the first quarter of 2024 of 54.5% (at the midpoint) represents an increase of 40 basis points compared with the prior quarter. For 2024, we expect our annual gross margin improvement will be at the higher end of our Target Financial Model range of 100 to 200 basis points.”