Reuters: Global Markets: Calix shares jump on upbeat outlook

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Calix shares jump on upbeat outlook May 2nd 2012, 18:45 Wed May 2, 2012 2:45pm EDT (Reuters) - Calix Inc's (CALX.N) shares rose as much as 22 percent on Wednesday after the broadband communications gear provider posted a better-than-expected adjusted profit, and forecast second-quarter revenue largely above estimates. Investors were happy with the management's confidence in the company's ability to continue to grow revenue at least 20 percent this year, although the network gear-making industry faced a slowdown due to lower customer spending, Raymond James analyst Simon Leopold told Reuters. Calix expects second-quarter adjusted earnings of 7 cents to 11 cents a share on revenue of $93 million to $97 million. Analysts, on average, were expecting second-quarter earnings of 10 cents per share on revenue of $94.5 million, according to Thomson Reuters I/B/E/S. Analyst Leopold said expectations for Calix were pretty low after rival Adtran Inc (ADTN.O) reported a weak first quarter. Investor expectations for Calix were much worse, he added. Adtran had posted earnings of 20 cents per share, below analysts' expectations of 25 cents per share. California-based Calix makes equipment that increases the capacity of fiber-optic lines to deliver telecom services and counts CenturyLink Inc (CTL.N) and Frontier Communications Corp (FTR.O) among its clients. For the first quarter, Calix's net loss narrowed to $7.5 million, or 16 cents per share, from $22.8 million, or 55 cents per share, a year ago. Excluding items, the company earned 1 cent per share on revenue of $78.6 million. Analysts were looking for breakeven earnings per share on revenue of $81 million. Calix shares were trading up 20 percent at $9.16 on Wednesday afternoon on the Nasdaq. (Reporting by Siddharth Cavale and Sruthi Ramakrishnan in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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