Calix Inc (CALX) 2024 Q1 法說會逐字稿

Greetings, everyone, and welcome to the Calix first-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Fanucchi, Vice President of Investor Relations. Sir, please go ahead.

大家好，歡迎參加 Calix 2024 年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係副總裁 Jim Fanucchi。先生，請繼續。

Thank you, Melissa, and good morning, everyone. Thank you for joining our first-quarter 2024 earnings call. Today on the call, we have President and CEO, Michael Weening; and Chief Financial Officer, Cory Sindelar. As a reminder, yesterday, after the market closed, Calix issued a news release, which was furnished on a Form 8-K, along with our stockholder letter and it was also posted in the Investor Relations section of the Calix website. Today's conference call will be available for webcast replay in the Investor Relations section of our website.

謝謝你，梅麗莎，大家早安。感謝您參加我們的 2024 年第一季財報電話會議。今天參加電話會議的有總裁兼執行長 Michael Weening；財務長科里辛德拉 (Cory Sindelar)。提醒一下，昨天市場收盤後，Calix 發布了一份新聞稿，該新聞稿以 8-K 表格形式提供，連同我們的股東信函，並且也發佈在 Calix 網站的投資者關係部分。今天的電話會議將在我們網站的投資者關係部分進行網路直播重播。

Before I turn the call over to Michael for his opening remarks, I want to remind everyone on this call we will refer to forward-looking statements, including all statements the company will make about its future financial and operating performance, growth strategy and market outlook, and actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause the actual results and trends to differ materially are set forth in the first-quarter 2024 letter to stockholders and in the annual and quarterly reports filed with the SEC.

在我將電話轉交給邁克爾進行開場白之前，我想提醒參加本次電話會議的所有人，我們將參考前瞻性陳述，包括公司將就其未來財務和營運業績、成長策略和市場前景做出的所有陳述，實際結果可能與這些前瞻性陳述預期的結果有重大差異。2024 年第一季致股東的信函以及向 SEC 提交的年度和季度報告中闡述了可能導致實際結果和趨勢出現重大差異的因素。

Calix assumes no obligation to update any forward-looking statements, which speak only as of their respective dates. Also in this conference call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the first quarter of 2024 letter to stockholders. Unless otherwise stated, all financial information referenced in this call will be non-GAAP.

Calix 不承擔更新任何前瞻性陳述的義務，這些陳述僅代表各自日期的情況。同樣在本次電話會議中，我們也將討論 GAAP 和非 GAAP 財務指標。2024 年第一季致股東的信中包含了 GAAP 與非 GAAP 指標的調整。除非另有說明，本次電話會議中引用的所有財務資訊均為非 GAAP 財務資訊。

With that, it is my pleasure to turn the call over to Michael. Michael. Please go ahead.

至此，我很高興將電話轉給麥可。麥可.請繼續。

Thank you, Jim. Our results in the first quarter demonstrated the continued execution and strength of our strategy. Our platform, cloud and managed services are enabling our broadband customers to succeed against their competitors every day. Their success delivers value to their stakeholders and in turn, to Calix. Our unique broadband business model delivered record gross margins as BSPs deployment of the Calix platform, cloud and managed services continued unabated.

謝謝你，吉姆。我們第一季的業績證明了我們策略的持續執行和實力。我們的平台、雲端和託管服務使我們的寬頻客戶每天都能在競爭中取得成功。他們的成功為利害關係人創造了價值，反過來也為 Calix 創造了價值。隨著 BSP 部署 Calix 平台、雲端和託管服務的勢頭有增無減，我們獨特的寬頻業務模式創造了創紀錄的毛利率。

However, our appliance business remains challenged in the same way, the market is, with larger customers reevaluating their CapEx plans. This trend continued into the second quarter, which we did not forecast. Now that we understand this larger customer dynamic, we have adjusted our expectations accordingly.

然而，我們的家電業務仍面臨著與市場相同的挑戰，大客戶正在重新評估他們的資本支出計畫。這種趨勢持續到第二季​​度，這是我們沒有預料到的。既然我們了解了更大的客戶動態，我們就相應地調整了我們的期望。

At the same time, however, it highlighted the ongoing strength of our smaller BSP customers. While growth in this set of customers is muted by a new build indecision around BEAD, the business, as usual, part of their operations, completing existing network builds and filling those networks by winning new subscribers remains robust.

但同時，它也凸顯了我們小型 BSP 客戶的持續實力。雖然這群客戶的成長因圍繞 BEAD 的新建設猶豫不決而減弱，但與往常一樣，其業務的一部分，即完成現有網絡建設並通過贏得新用戶來填充這些網絡，仍然保持強勁。

Leading indicators from infrastructure vendors that deploy fiber combined with green shoots in our customer base lead us to forecast that the second quarter will be the bulk of our appliance revenue. Regarding BEAD, and as we have said, we believe revenue will begin in early '25 and we will lead working with customers to help them to government funds is something that we have done for 15 years.

部署光纖的基礎設施供應商的領先指標加上我們客戶群的萌芽，使我們預測第二季將是我們設備收入的大部分。關於 BEAD，正如我們所說，我們相信收入將在 25 年初開始，我們將領導與客戶合作，幫助他們獲得政府資金，這是我們 15 年來所做的事情。

Recently, you saw us create a partnership with industry-leading funding solution provider, Ready.net. This partnership enables us to leverage Ready.net's tools as part of our existing funding consult program, connecting our more than 1,600 customers with a streamlined portal to apply for and win grant funds, secured capital and adhere to public funding requirements.

最近，您看到我們與業界領先的融資解決方案供應商 Ready.net 建立了合作夥伴關係。這項合作關係使我們能夠利用Ready.net 的工具作為我們現有融資諮詢計劃的一部分，透過簡化的門戶將我們的1,600 多名客戶聯繫起來，以申請和贏得贈款資金、獲得資金並遵守公共融資要求。

Earlier this month, we announced that 74% of federally funded BSPs used Calix for their broadband speed test. This is a significant indicator of future success as any BSP who received government stimulus much routinely report back on the speed they are delivering to their customers. This is a complicated undertaking that we've made simple via our platform cloud and managed solutions. We expect that 74% figure to grow.

本月早些時候，我們宣布 74% 的聯邦資助 BSP 使用 Calix 進行寬頻速度測試。這是未來成功的重要指標，因為任何接受政府刺激的央行都會定期報告他們向客戶提供服務的速度。這是一項複雜的任務，我們透過平台雲端和託管解決方案使其變得簡單。我們預計 74% 的數字將會成長。

While the largest government stimulus program is soon to be here, we've been actively landing new footprint as our consolidated network delivers the lowest cost per bit per mile infrastructure and up to 80% months reduction in operating expense as demonstrated at Verizon.

雖然最大的政府刺激計劃即將到來，但我們一直在積極開拓新的足跡，因為我們的整合網路提供了最低的每比特每英里基礎設施成本，並且每月營運費用減少了80%，正如Verizon 所證明的那樣。

Unlike in times past, when many new accounts were startups, the 10 new accounts recorded in the first quarter all came from existing service providers. We intend to maintain our aggressive stance in the market at this critical time.

與過去許多新帳戶都是新創公司不同，第一季記錄的 10 個新帳戶全部來自現有服務提供者。我們打算在這個關鍵時刻保持我們在市場上的正面立場。

Finally, and most importantly, the wave of disruption is speeding up. Larger service providers are engaging in conversations with Calix to help them build a more valuable business by avoiding commoditization. Two examples from the first weeks of Q2 include signing the largest cloud deal in our history and a larger service provider, selecting SmartBiz. Both are indicators that we are crossing the chasm in this disruption.

最後，也是最重要的，顛覆浪潮正在加速。較大的服務提供者正在與 Calix 進行對話，以幫助他們透過避免商品化來建立更有價值的業務。第二季前幾週的兩個例子包括簽署我們史上最大的雲端交易和一個更大的服務供應商選擇 SmartBiz。兩者都表明我們正在跨越這場混亂的鴻溝。

With that, I'd like to turn it over to Cory to review our financial results for the quarter.

至此，我想將其交給 Cory 來審查我們本季的財務表現。

Thank you, Michael. The first quarter represented another quarter of deliberate and disciplined execution. We delivered revenue of $226.3 million, which was within the guidance range we provided in January, against the crosswinds prevalent in our industry for continued growth in our platform cloud and managed services drove record non-GAAP gross margin of 54.9%.

謝謝你，麥可。第一季是深思熟慮、嚴格執行的另一個季度。我們實現了2.263 億美元的收入，這在我們1 月份提供的指導範圍內，儘管我們的平台雲和託管服務的持續增長推動了創紀錄的54.9% 的非GAAP 毛利率，但我們的行業普遍存在逆風。

In the first quarter, we saw a platform adoption with 18 customers beginning their platform journey with us and 27 customers deploying a managed service for the first time. In the first quarter of 2024, non-GAAP operating expenses were $108.4 million, down $1.6 million from the prior quarter. The decrease is attributed to our connections event, which occurs each year in the fourth quarter.

第一季度，我們看到 18 位客戶開始與我們一起開始平台之旅，27 位客戶首次部署託管服務。2024 年第一季度，非 GAAP 營運費用為 1.084 億美元，比上一季減少 160 萬美元。減少的原因是每年第四季發生的連線事件。

As we talked about in our last call. Our plan is to keep 2024 operating expense investments relatively consistent with 2023 as we continue to believe that this level of investment represents a great opportunity for us to grow our footprint ahead of the US government broadband investment.

正如我們在上次通話中談到的那樣。我們的計劃是保持 2024 年營運費用投資與 2023 年相對一致，因為我們仍然相信這一水平的投資為我們提供了一個絕佳的機會，可以在美國政府寬頻投資之前擴大我們的足跡。

Our debt-free balance sheet remains strong. At the end of the first quarter, cash and investments were nearly $240 million, representing a sequential increase of $19 million. This was our fourth consecutive quarter of double-digit free cash flow. During the first quarter, our supply chain continued to normalize. We exited Q1 with purchase commitments falling another $29 million from year end to $147 million.

我們的無債資產負債表依然強勁。第一季末，現金和投資接近2.4億美元，比上一季增加1900萬美元。這是我們連續第四個季度實現兩位數的自由現金流。第一季度，我們的供應鏈持續正常化。第一季結束時，我們的採購承諾比年底又減少了 2,900 萬美元，達到 1.47 億美元。

Inventory deposits declined by $2 million and our inventory turns were 3.1, down from 3.3 last quarter as our component inventory increased. Excluding component inventory, our inventory turns would have been greater than 4. Furthermore, we expect these reductions in working capital requirements, combined with continued profitability, will result in consistent and quarterly double-digit operating and free cash flow.

庫存存款減少了 200 萬美元，由於我們的零件庫存增加，我們的庫存週轉率為 3.1，低於上季度的 3.3。不包括零件庫存，我們的庫存週轉率將大於 4。此外，我們預期營運資金需求的減少，加上持續的獲利能力，將帶來持續的季度兩位數營運和自由現金流。

During the first quarter, we repurchased $4 million of our common stock, bringing our total common stock repurchases over the last year to $89 million. Our repurchase program remains in place with approximately $110 million available at the end of the first quarter.

第一季度，我們回購了 400 萬美元的普通股，使去年普通股回購總額達到 8,900 萬美元。我們的回購計劃仍然有效，第一季末可用資金約為 1.1 億美元。

Now let's discuss our revenue guidance for the second quarter. As Michael has discussed, there currently are several crosswinds in our industry. As a result of these factors, our second quarter of 2024 outlook is for revenue to be between $197 million and $203 million. The forecasted decline in revenue from the first quarter is mostly due to the continued delay of purchasing decisions at a few of our medium and large customers.

現在讓我們討論第二季的營收指引。正如邁克爾所討論的，目前我們行業存在一些側風。由於這些因素，我們預計 2024 年第二季的營收將在 1.97 億美元至 2.03 億美元之間。預計第一季營收下降的主要原因是我們的一些大中型客戶的採購決策持續延遲。

Looking out a bit further, we believe the June quarter will set the bottom for revenue as revenue from a few significant customers will have diminished to a point where there is limited downside risk. When you combine the green shoots from our smaller customer base with footprint expansion, we believe we will return to revenue growth.

再進一步展望，我們認為六月季度的收入將為收入觸底，因為來自一些重要客戶的收入將減少到下行風險有限的程度。當我們將較小客戶群的萌芽與足跡擴張結合時，我們相信我們將恢復收入成長。

In summary, while crosswinds affect our top line in the near term, our platform, cloud and managed services will continue to grow unabated and drive gross margin expansion. And with the industry's strongest balance sheet, we have the financial resources to invest in our operations and grow our footprint in advance of the US government broadband investments.

總之，雖然短期內側風影響我們的營收，但我們的平台、雲端和託管服務將繼續有增無減，並推動毛利率擴張。憑藉業界最強勁的資產負債表，我們擁有財務資源來投資我們的營運並在美國政府寬頻投資之前擴大我們的足跡。

Michael, back to you.

邁克爾，回到你身邊。

Thank you, Cory. As I have shared, I meet with broadband customers and their investors constantly. It is clear they are understanding the disruption that faces legacy network operators, which is critical to our crossing the chasm from early adopters to winning an early majority. With more than 1,000 customers deploying our platform, it is no surprise that we are engaging with ever larger prospects who are interested in how our BSP customers are achieving their incredible revenue, margin, cash flow and customer satisfaction results.

謝謝你，科里。正如我所分享的，我不斷與寬頻客戶及其投資者會面。顯然，他們了解傳統網路營運商面臨的顛覆，這對於我們跨越從早期採用者到贏得早期多數的鴻溝至關重要。隨著超過1,000 名客戶部署我們的平台，我們正在與越來越多的潛在客戶接觸，他們對我們的BSP 客戶如何實現令人難以置信的收入、利潤、現金流和客戶滿意度結果感興趣，這並不奇怪。

The entire Calix team remains energized by the opportunity to expand our platform, cloud and managed services business. At the same time, with more than 60 million new fiber connections forecasted in the next five years, we have a once-in-a-generation opportunity to land new network footprint and enable our BSP customers to win new subscribers, thereby filling those networks with an expanding portfolio folio of managed services.

整個 Calix 團隊仍然對擴展我們的平台、雲端和託管服務業務的機會充滿活力。同時，預計未來五年新增光纖連線數將超過 6,000 萬個，我們擁有千載難逢的機會來拓展新的網路覆蓋範圍，並使我們的 BSP 客戶能夠贏得新用戶，從而填充這些網路不斷擴大的託管服務組合。

This will be supercharged by the BEAD funds that began in '25. While only one state has completed all 10 steps in the BEAD process, 42 other states have completed 9 of the 10 steps to begin funding. In closing, I want to reiterate that we are confident in our long-term outlook.

25 年開始的 BEAD 基金將對此予以大力支持。雖然只有一個州完成了 BEAD 流程的全部 10 個步驟，但其他 42 個州已經完成了開始資助的 10 個步驟中的 9 個。最後，我想重申，我們對長期前景充滿信心。

We have a talented and motivated team executing our strategy every day. We have unique technology that positions us to surf this wave and take advantage of new network builds. We have the financial strength and balance sheet that allows us to avoid any distractions. Therefore, we intend to keep a steady and disciplined hand on our operating expense investments as we maximize this opportunity and help our customers win.

我們擁有一支才華洋溢、積極進取的團隊，每天都在執行我們的策略。我們擁有獨特的技術，使我們能夠在這股浪潮中衝浪並利用新的網路建設。我們擁有足夠的財務實力和資產負債表，可以避免任何干擾。因此，我們打算在營運費用投資上保持穩定和嚴格的控制，最大限度地利用這一機會並幫助我們的客戶獲勝。

Jim, let's open the call for questions.

吉姆，讓我們開始提問吧。

Thank you, Michael. Melissa, please open the call for questions at this time.

謝謝你，麥可。梅麗莎，請現在打開提問電話。

(Operator Instructions)

（操作員說明）

Ryan Koontz, Needham & Co.

孔茲 (Ryan Koontz)，李約瑟公司

Great. Thanks for the question. Just unpacking your customer segments there a bit, looks like your Tier 3s or the smaller customers relatively stable here, but the medium and large really hurting your -- how should we think about the trajectory of those segments going forward here into 2Q? And then, how do you think about them in the second half at this kind of early stage from a from a high level? Thanks.

偉大的。謝謝你的提問。只是稍微展開一下你的客戶群，看起來你的3 級客戶或較小的客戶在這裡相對穩定，但中型和大型客戶確實對你造成了傷害- 我們應該如何考慮這些細分市場進入第二季度的軌跡？那麼，您從高水平上如何看待他們在這種早期階段的下半場比賽？謝謝。

Yeah. Thanks, Ryan, and thanks for the question. As we outlined in our letter, we're continuing to see green shoots coming out of the smaller customer base and the decline from Q1 to Q2 is really focused on those medium and large customers. To put a point on it, that segment -- those segments in the fourth quarter were $77 million of revenue and in the first quarter, they turned out to be about $43 million.

是的。謝謝瑞安，也謝謝你的提問。正如我們在信中概述的那樣，我們繼續看到較小客戶群的復甦，從第一季到第二季的下降實際上主要集中在那些中型和大型客戶上。需要強調的是，該細分市場第四季的營收為 7,700 萬美元，而第一季的營收約為 4,300 萬美元。

We didn't expect continued deterioration a quarter ago, but clearly they're still stuck in their capital planning processes. And we're not forecasting them to be -- to have to get from that $43 million level. So those segments really have not much more pressure to go. And so we think at this point, why Q2 has bottomed and we're confident that from here on out, we ought to be able to grow.

我們在一個季度前並沒有預期到情況會持續惡化，但顯然他們仍然陷入資本規劃流程。我們並沒有預測他們必須從 4300 萬美元的水平開始。因此，這些細分市場確實沒有太大的壓力。因此，我們現在認為，為什麼​​第二季已經觸底，我們有信心從現在開始，我們應該能夠成長。

Got it. Thanks, Cory. And quick follow-up, if I could, please, on your product mix here in terms of Revenue EDGE Intelligence Access EDGE, should we think that Intelligent Access EDGE as the trajectory for your new footprint gain? I actually thought it might be a little worse than that and might see a kind of more of a mix toward selling and revenue EDGE, but how should we interpret those two product segments?

知道了。謝謝，科里。如果可以的話，請快速跟進您的產品組合，即收入 EDGE 智慧存取 EDGE，我們是否應該認為智慧存取 EDGE 作為您新足跡成長的軌跡？我實際上認為情況可能比這更糟糕，並且可能會看到更多的銷售和收入邊緣的混合，但我們應該如何解釋這兩個產品領域？

Well, so the -- on the Intelligent Access EDGE, that's a mix of new network gains, but also our existing customers filling out the network builds that they currently have. And so we said we saw some rails. You see the continued strength in our rural customers who are in a smaller segment, who continue to build out both networks successfully. And that's why you see that under underpinned strength.

那麼，在智慧存取邊緣上，這是新網路收益的組合，而且我們現有的客戶也填寫了他們目前擁有的網路建置。所以我們說我們看到了一些鐵軌。您可以看到我們的農村客戶的持續實力，他們屬於較小的細分市場，他們繼續成功地建立兩個網絡。這就是為什麼你會看到這種力量的支撐。

And I would say that as we go forward and you start to see those 60 million fiber line start to get build out, that you're definitely going to see the Intelligent Access EDGE surge. On the Revenue EDGE side, that is the business as usual part of our business where that's what they use to acquire our new subscribers.

我想說，隨著我們前進，您開始看到 6000 萬條光纖線路開始建設，您肯定會看到智慧接入 EDGE 激增。在收入邊緣方面，這是我們業務的正常部分，他們用它來獲取我們的新訂戶。

And so you're going to see that continue. And in fact, as we we took 10 customers last year -- last quarter from -- and therefore, those when they're generally caps and grows where they're saying, I have an existing fiber network. I'm worried about commoditization. I need to differentiate my business in my markets, and Calix is best positioned to do that, so.

所以你會看到這種情況繼續下去。事實上，去年我們從上個季度吸引了 10 名客戶，因此，當他們通常達到上限並成長時，他們會說，我有一個現有的光纖網路。我擔心商品化。我需要讓我的業務在我的市場中脫穎而出，而 Calix 最適合做到這一點。

Got it, Michael. So it's fair to say that the Intelligence Access EDGE number includes a healthy component of sell-in, fill-in, EDGE-out from existing networks, but entirely new footprint is down much more than that?

明白了，麥可。因此，可以公平地說，Intelligence Access EDGE 數字包括現有網路的銷售、填充、EDGE 輸出的健康組成部分，但全新的足跡下降的程度遠不止於此？

For sure. And that's back to the indecision with regards to decision making as they work through try invest my [drive pattern] and the capital that I have and a new network build or do I use the funding that's now almost six months -- seven, eight months out and the BEAD funding can go after that instead of using my existing capital. So in the future, you will definitely see it swing up on the network side as they begin to deploy those BEAD funds and we take footprint.

一定。這又回到了決策的猶豫不決，因為他們嘗試投資我的[驅動模式]和我擁有的資本以及一個新的網絡建設，或者我是否使用現在近六個月的資金——七、八個月之後可以使用 BEAD 資金，而不是使用我現有的資金。因此，將來，當他們開始部署這些 BEAD 資金並且我們佔據足跡時，您肯定會看到它在網路方面出現波動。

Got it. Great. I'll pass it on from here. Thank you.

知道了。偉大的。我將從這裡傳遞它。謝謝。

Thanks, Ryan.

謝謝，瑞安。

George Notter, Jefferies.

喬治諾特，傑弗里斯。

Hi, guys. Thanks a bunch. I wanted to ask the BEAD question. I think you said the six to eight months out. Look, I know the BEAD program is a little bit controversial in terms of the process and the potential for delays, is there -- can you handicap the BEAD process? Do you really think that the monies are flowing by year end than the six to eight months out? Or do you think it's a program that has the potential to slip?

嗨，大家好。非常感謝。我想問BEAD的問題。我想你說的是六到八個月。聽著，我知道 BEAD 計劃在流程和延遲的可能性方面有點爭議，你能阻礙 BEAD 流程嗎？您真的認為到年底資金會比六到八個月後流入嗎？或者您認為這是一個有可能下滑的程式嗎？

Good question. We have in -- everybody's asking that question. And so over the last three years, others have been asserting that it would be coming earlier. We've been very consistent with regards to our views that which takes significantly longer to arrive. And then when it does arrive, it's going to be a lot larger than people anticipate. So what's our view on it? As we it in 2025 -- in early 2025, we think that you'll start to see some trickles and then it will go from there. 2025 is the year.

好問題。我們每個人都在問這個問題。因此，在過去的三年裡，其他人一直斷言它會更早到來。我們的觀點非常一致，但需要更長的時間才能達成。當它真正到來時，它的規模將比人們預期的要大得多。那麼我們對此有何看法呢？正如我們在 2025 年——2025 年初，我們認為你會開始看到一些涓滴，然後它就會從那裡開始。 2025年是這一年。

Yeah, Ryan. You could see from the NTIA's website that they made some good progress in terms of getting states approved through the volume one or the challenge process. If you include territories, they went from 29 last quarter to 47. I would expect that the NTIA will start working more on the volume two in getting more states approved. But you're right. So you start seeing those states get approved and this (inaudible) in turn continue to slip. So like any government funds. And that's where I'm continuing to watch that. I'm encouraged by what I saw what happened in the last 90 days, and we'll see what the next 91 days brings.

是的，瑞安。您可以從 NTIA 的網站看到，他們在讓各州通過第一卷或挑戰流程獲得批准方面取得了一些良好進展。如果算上地區，則從上季的 29 個增加到 47 個。我預計 NTIA 將開始在第二卷上進行更多工作，以獲得更多州的批准。但你是對的。所以你開始看到這些州獲得批准，而這（聽不清楚）反過來又繼續下滑。就像任何政府資金一樣。這就是我繼續關注的地方。我對過去 90 天所發生的事情感到鼓舞，我們將看看接下來的 91 天會發生什麼。

Got it. And then just as a follow up, I think you guys were talking about the overhang associated with BEAD. How many -- we talked about kind of network planners kind of going offline is a result of the weight for effect associated with BEAD. Is that -- you talked about the strength in your smaller customers. Is that something that you're seeing right now in the smaller customer base? Or is that something you're looking at more prospectively as the year goes on? Or how do you think about that effect and how it layers in your business timing wise? Thanks.

知道了。然後，作為後續行動，我認為你們正在談論與 BEAD 相關的懸而未決的問題。有多少——我們談到了網路規劃者的離線是與 BEAD 相關的影響權重的結果。您談到了小客戶的優勢嗎？現在您在較小的客戶群中看到的是這種情況嗎？或者說，隨著時間的推移，你會更前瞻性地看待這個問題嗎？或者您如何看待這種影響以及它如何在您的業務時機方面分層？謝謝。

Well, we identified that in January this year. We stated that it would be -- this is going to be any impact through first half, right? And so we saw that in Q1, and we see that in Q2. You see a profound impact on some of the larger customers as they're working through this. With our existing customer base, they still are going through that decision-making process. So a portion of them are -- have made a decision to not apply for BEAD, but there are a portion of them that are continuing on, Therefore, are pursuing BEAD. Therefore, that indecision continues and you see it lesser in the smaller customers and more profound in the medium and large.

嗯，我們在今年一月就確定了這一點。我們說過，這將在上半年產生任何影響，對吧？我們在第一季看到了這一點，在第二季也看到了這一點。您會看到一些正在解決此問題的大客戶受到了深遠的影響。對於我們現有的客戶群，他們仍在經歷這個決策過程。所以他們中的一部分人已經決定不申請BEAD，但也有一部分人正在繼續申請BEAD。因此，這種猶豫不決的情況仍在繼續，在小型客戶中這種情況較少，而在中型和大型客戶中則更為嚴重。

Great. Thank you.

偉大的。謝謝。

Samik Chatterjee, JPMorgan.

薩米克‧查特吉，摩根大通。

Hi, good morning and thanks for taking my questions. I did jump on a bit late, so if I -- if you've answered this, please excuse me. But you did call out in 1Q as well, certain significant customers that were pausing spend. You are calling that out as a headwind in this release as well.

你好，早安，感謝您回答我的問題。我確實有點晚了，所以如果我——如果你已經回答了這個問題，請原諒。但您確實在第一季也指出了某些暫停支出的重要客戶。您也將其稱為此版本中的逆風。

I'm just wondering when you look at the breadth of the customers, sort of that are pausing, is that just expanding in terms of the breadth as you go into sort of the back end of the year? Is that really becoming sort of a more evident trend or it is typically sort of remaining constrained to a few? I think you had called out three significant customers last quarter that had paused. Is it remaining constraint to those? And I have a follow-up. Thank you.

我只是想知道，當你看到客戶的廣度時，有點暫停，當你進入今年年底時，這是否只是在廣度上擴大？這是否真的成為更明顯的趨勢，還是通常僅限於少數人？我認為上個季度您已經召集了三個暫停重要的客戶。對這些仍然有限制嗎？我有一個後續行動。謝謝。

Well, it's a great question for you to answer and identify that the shift from Q4 to Q2 and how we did not anticipate it continuing in the second quarter.

好吧，這是一個很好的問題，需要您回答並確定從第四季度到第二季度的轉變，以及我們如何預計這種情況不會在第二季度繼續下去。

Yeah, it is largely two customers that have continued to have delays in their capital decision. And so it's not a broadening, it's really more focused on those couple. And when you take a look at what they did, we were at $77 million in Q4 of last year. It's $43 million in the current and anticipated to be about half that in Q2. So no, I don't -- it's not broadening out. It's still tied to largely predominantly, those two customers in particular.

是的，主要是兩個客戶的資本決策繼續延遲。所以這不是一個擴大範圍，它實際上更關注那對夫婦。當你看看他們做了什麼時，我們去年第四季的收入為 7700 萬美元。目前為 4,300 萬美元，預計第二季約為該數字的一半。所以不，我不——它沒有擴大。它仍然主要與這兩個客戶相關。

And that's why we feel confident in calling the bottom. The small space segment remains very robust. We've demonstrated that. And while they may have some pause in their decision making, they continue to expand out with their initial or with their existing network builds and winning new subscribers. We've seen green shoots in everything that we're doing. If you actually look at last year, as inventory turns decline, we saw obviously, our funnel decline in the same way, and we've also seen that turnaround.

這就是為什麼我們有信心觸底。小空間部分仍然非常強勁。我們已經證明了這一點。儘管他們在決策過程中可能會停頓，但他們會繼續擴展其初始網路或現有網路建置並贏得新用戶。我們所做的一切都已經看到了萌芽。如果你實際上看看去年，隨著庫存週轉率下降，我們顯然看到我們的漏斗以同樣的方式下降，而且我們也看到了這種轉變。

Our funnel is now expanding. And you also the lead indicators from fiber builder like Dycom, who called out that they're starting to see those green shoots and they are are also expanding. So that's why we feel comfortable calling the bottom. And then in the second half, we'll start seeing the expansion.

我們的管道現在正在擴大。還有來自 Dycom 等纖維製造商的領先指標，他們表示他們開始看到這些萌芽，而且它們也在擴張。這就是為什麼我們覺得觸底很舒服。然後在下半年，我們將開始看到擴張。

Got it, got it. And for my follow-up, one of the interesting things you highlighted in the shareholder letter is even as customers are pausing some of the new network builds, they're focusing more on subscriber trends and monetization of those subscribers, I assume, which leads we think this should be more interest for your for cloud platforms overall, but I know you outlined that in Q2 you will continue to grow them.

明白了，明白了。對於我的後續行動，您在股東信中強調的有趣的事情之一是，即使客戶暫停了一些新的網絡建設，他們也更多地關注用戶趨勢和這些用戶的貨幣化，我認為，這導致我們認為這應該會讓您對雲端平台整體更感興趣，但我知道您概述了在第二季您將繼續發展它們。

But what are you seeing in terms of trends? Are you seeing any accelerating trends just on account of 10 customers relying more on you for those services in the meantime as the network builds that pause? I mean, any insights on that because I would think you'd have a counterbalancing effect of the cloud platforms there. Thank you.

但您在趨勢上看到了什麼？隨著網路暫停，您是否會因為 10 位客戶在這些服務上更加依賴您而看到任何加速趨勢？我的意思是，對此有任何見解，因為我認為雲端平台會產生平衡作用。謝謝。

That's a great question, Samik, and a good insight. And in fact, it's exactly like that. I actually had a prospect, you've never done business with us last week, use the following term, you stated that we did not have the time over the last three years through the pandemic to pour a cup of cofee, let alone consider a different business strategy. But through this pause and some of the challenges that are going on the industry, we actually took a step back.

薩米克，這是一個很好的問題，也是一個很好的見解。事實上，正是如此。我其實有一個潛在客戶，你上週從來沒有和我們做過生意，用下面這個詞，你說我們過去三年在疫情期間沒有時間倒一杯咖啡，更不用說考慮了不同的經營策略。但透過這次停頓和業界面臨的一些挑戰，我們實際上退了一步。

We started to look at you as an alternative. And through our conversation, we realized that you're not an alternative, that you're the choice that we should be making because you're not coming to us talking about [doubling] in dumb fiber network. Where you're actually talking about is building out a diversified business strategy that is very comprehensive for the consumer, expands into small business and then the vision to go into medium. And then at the same time, differentiates the local brand with the community through assets like SmartTown.

我們開始將您視為替代方案。透過我們的對話，我們意識到您不是一個替代方案，您是我們應該做出的選擇，因為您不會來找我們談論啞光網絡的[加倍]。您實際上談論的是製定一個多元化的業務策略，該策略對消費者來說非常全面，擴展到小型企業，然後擴展到中型企業。同時，透過 SmartTown 等資產將本地品牌與社群區分開來。

And so in this type of scenario where they did not have that breathing room to even consider it, they now do. And this represents what we've been stating in Q2, Q4 and now in Q2 again, that this represents a massive opportunity to search through that demonstrate the value that we can have to their business and set ourselves up for a decade to come.

因此，在這種情況下，他們甚至沒有喘息的空間來考慮它，但他們現在這樣做了。這代表了我們在第二季、第四季以及現在再次在第二季度所說的內容，即這是一個巨大的機會，可以透過搜尋來證明我們可以為其業務帶來的價值，並為未來十年做好準備。

And so that's why we're so enthusiastic about the pause that's happening in the market right now. It creates an opportunity with those customers to actually take the time to think and recognize that there is a big shift happening and they have an opportunity to partner with Calix.

這就是為什麼我們對目前市場上發生的暫停如此熱衷。它為這些客戶創造了一個機會，讓他們真正花時間思考並認識到正在發生的重大轉變，他們有機會與 Calix 合作。

Thank you. Thanks for taking my questions.

謝謝。感謝您回答我的問題。

Scott Wallace Searle, ROTH MKM.

斯科特·華萊士·塞爾，羅斯·MKM。

Hey, good morning. Thanks for taking my questions. Hey, Mike, maybe just to quickly clarify a couple of items. Looking at the down quarter them into June and the weakness in the medium and large customers, are they entirely the cause of the downward sequential move from the first quarter and second quarter would imply another 40%, 50% sequential decline similar to what we saw in the current March quarter? Are you seeing some softening as well on the small business front?

嘿，早安。感謝您回答我的問題。嘿，麥克，也許只是為了快速澄清一些問題。看看進入6 月的季度下滑以及中型和大型客戶的疲軟，它們是否完全是第一季和第二季季減的原因？ % 的下降在目前的三月季度？您是否看到小型企業方面也出現了一些疲軟？

And as we look into the second half of this year, wanted to clarify that recovery, is it all small business driven? And when you see BEAD in early '25, I'm assuming that's the initial spending that you're talking about as opposed to awards. Just want to clarify that. And then I had a follow-up.

當我們展望今年下半年時，我們想澄清復甦是否都是小型企業驅動的？當你在 25 年初看到 BEAD 時，我假設這是你談論的初始支出，而不是獎勵。只是想澄清這一點。然後我進行了跟進。

So Cory clearly stated that when revenue is declined from $77 million to $43 million in the medium large. And then we're anticipating it having again in second quarter, that we've fully attribute what's happening to that segment. And so -- and then as we stated in the investor letter, our small segment continues to be strong.

所以Cory明確表示，當中大型公司的營收從7,700萬美元降到4,300萬美元時。然後我們預計它將在第二季度再次出現，我們已經完全將發生的事情歸因於該細分市場。因此，正如我們在投資者信中所說，我們的小細分市場繼續保持強勁。

And then we look, at as they're going through this decision-making process, as I just stated, as a significant opportunity for us to actually surge in where they have the mind share and the time to think, where they can consider us as an alternative and our business model, which in the end is crafting the cause of chasm from us, moving from the really innovative, both, like allo and others, to really get it and have already deployed and recognize that they want to build a different business to differentiate in their markets to the network operators who are now starting to see the challenges and looking to fill our network.

然後，正如我剛才所說，當他們正在經歷這個決策過程時​​，我們將其視為一個重要的機會，讓我們能夠真正在他們擁有思想分享和思考時間的地方，在他們可以考慮我們的地方作為替代方案和我們的商業模式，最終會造成我們之間的鴻溝，從真正的創新，如allo和其他人，真正得到它並已經部署並認識到他們想要建立一個網絡運營商現在開始看到挑戰並希望填補我們的網路。

So yes, it's attributed to medium and large. No, we do not see a shortfall in the small. In fact, we see them continuing to invest and grow. And that will lead to strength in the second half. I think I answered his question.

所以是的，它歸因於中型和大型。不，我們沒有看到小方面的不足。事實上，我們看到他們繼續投資和成長。這將導致下半場的強勢。我想我回答了他的問題。

And then the last question, Scott, you asked about was from BEAD. And yes, we're talking about not just awards, but revenue beginning in '25.

Scott，你問的最後一個問題來自 BEAD。是的，我們談論的不僅僅是獎項，還有從 25 年開始的收入。

Okay, great. And if I could, just on the BEAD's front. Look, you're working with multiple customers right now in terms of facilitating their process and obviously engaging with them. Is there a number in terms of the amount of requests that your customers have put in or some sort of magnitude help us understand what that dollar amount could actually look like? And I was wondering if you could clarify trickle in '25 and where you think this could peak out in terms of annual contribution from BEAD funding as we get into '26, '27 and beyond? Thanks.

好的，太好了。如果可以的話，就在珠子的前面。看，您現在正在與多個客戶合作，以促進他們的流程並顯然與他們互動。您的客戶提出的請求數量是否有一個數字，或者是否有某種程度的數字可以幫助我們了解該金額的實際情況？我想知道您是否可以澄清一下 25 年的涓滴效應，以及您認為當我們進入 26 年、27 年及以後時，BEAD 資金的年度貢獻會在哪裡達到高峰？謝謝。

No, we don't have a number affiliated with that. The only number that we will provide is that we've had well over 500 consults that we've engage with customers and helping them understand where the different funds are. That's not only BEAD, but it's also state level, that's Tribal. All those different groups that we've been working with. I was at the Tribal Summit two weeks ago, and there were hundreds and hundreds of tribes there who are contemplating that government funding, which is directed at their markets.

不，我們沒有與此相關的號碼。我們唯一能提供的數字是，我們已經與客戶進行了超過 500 次諮詢，幫助他們了解不同的資金在哪裡。這不只是BEAD，也是州級的，那就是Tribal。我們一直在與所有這些不同的團體合作。兩週前我參加了部落高峰會，那裡有成百上千的部落正在考慮政府的資金，這些資金是針對他們的市場的。

So I would just say that we are incredibly active as I put -- or we put in the shareholder letter. We also have partnered with Ready.net, who is very active with our customers and helping them understand where the BEAD funding is, how to pursue it, what maps are. And where we see incremental value in that is, as we've done with previous programs over the last 15 years, we see those expanding beyond just the funding part of it, which is a great opportunity for us to partner with our customers into how do they stay compliant over the long term through the testing.

所以我只想說，正如我所說的那樣，或者我們在股東信中所說的那樣，我們非常活躍。我們也與 Ready.net 合作，後者非常積極地與我們的客戶合作，幫助他們了解 BEAD 資金在哪裡、如何尋求資金以及地圖是什麼。我們看到了增量價值，就像我們在過去15 年裡對之前的項目所做的那樣，我們看到這些項目的範圍不僅限於資金部分，這對我們來說是一個很好的機會，可以與我們的客戶合作，他們是否透過測試長期保持合規性？

Currently, as I stated earlier in my remarks, 74% of federally funded customers in the US today use us for speed test. That should be a very good indicator with regards to the capabilities that we provide of broadband service provider to pursue government funding on how to make it simple and successful.

目前，正如我之前在演講中所說，目前美國 74% 的聯邦資助客戶使用我們進行速度測試。這應該是一個非常好的指標，說明我們為寬頻服務提供者提供的尋求政府資金以使其變得簡單和成功的能力。

Great. Thanks.

偉大的。謝謝。

Michael Genovese, Rosenblatt Securities.

麥可‧吉諾維斯，羅森布拉特證券公司。

Great. Thanks. Thanks for the call. Thanks for all the points you're making, which are good. I just wanted to check first on a couple of more bare thesis points, just get your view on them. First of all, at OFC, Cisco was talking about basically going after the medium customer market, with Pond technology, with a Pond card hanging off a router, similar to the [CNO] solution. So just wanted to check if there's anything market share wise going on in Tier 2 market or if this is all just customer evaluation delays as you spoke about?

偉大的。謝謝。感謝您的來電。感謝您提出的所有觀點，這些觀點都很好。我只是想先檢查幾個簡單的論文點，看看你對它們的看法。首先，在 OFC，思科談論的是基本上透過 Pond 技術來瞄準中型客戶市場，將 Pond 卡掛在路由器上，類似於 [CNO] 解決方案。因此，我只是想檢查一下二級市場是否存在任何市場份額方面的情況，或者這是否只是您所說的客戶評估延遲？

There is a competitive thing going on. We're taking footprint. So that's what's going on. And so that being said, our acquisition of that footprint, like the 10 customers that we won in Q1, it takes time for them to actually burn through their previous inventory and make the transition of all those different elements. And so those are the green shoots that we've been referring to. With regards to other people coming into our market, bring it on.

正在發生競爭性的事情。我們正在留下足跡。這就是正在發生的事情。話雖如此，我們對這一足跡的收購，就像我們在第一季贏得的 10 個客戶一樣，他們需要時間來真正消耗掉以前的庫存並完成所有這些不同元素的過渡。這些就是我們一直提到的萌芽。至於其他人進入我們的市場，請繼續。

Great. Okay. And then on the kind of Tier -- large, medium small customer question, having to do with BEAD there's been some people talking about how -- and I don't know how they can predict this. But they are predicting that at the end of the day, and I don't know if this is correct, but people are saying BEAD might go more towards the large and the medium customers and less towards the small customer base at the end of the day. So I don't know where that call is coming from or how people can say that.

偉大的。好的。然後，關於大、中、小客戶問題，與 BEAD 有關的問題，有人在談論如何做到這一點，我不知道他們如何預測這一點。但他們預測到最後，我不知道這是否正確，但人們說，BEAD 可能會更多地面向大中型客戶，而不是針對小型客戶群。所以我不知道這個電話是從哪裡來的，也不知道人們怎麼能這麼說。

You're working with all these customers. What's your confidence that your small customers who make up 80% of your revenues are going to be winners in the BEAD process? Like, where does that -- just sort of detail where that confidence comes from? And any data points you can give us there? Thanks.

您正在與所有這些客戶合作。您對佔您收入 80% 的小客戶將成為 BEAD 流程的贏家有多大信心？例如，這種信心從何而來的細節？您可以向我們提供任何數據點嗎？謝謝。

Well, to be clear, though, BEAD -- we didn't BEAD is going to go to small customers. We said that actually BEAD is going to go to the market, small, medium and large. We called out that our medium and large segment is down as they go through their decision-making process. But that should be an indicator that that should then swing back as they acquire that funding.

好吧，但要明確的是，BEAD——我們並沒有將 BEAD 面向小客戶。我們說實際上BEAD要走向市場，小型、中型、大型。我們指出，我們的中型和大型部門在進行決策過程時​​表現不佳。但這應該是一個指標，表明當他們獲得這筆資金時，這種情況應該會回落。

With regards to who's going to win, all three segments are going to compete for that money aggressively. But to be clear, BEAD is focused on the really rural underserved customers. And in fact, when I've engaged with the NTIA around this, they are aggressively trying to ensure that the small service providers do participate and that it just doesn't go to large because if the small teams do not actually participate in BEAD, that's going to be for America.

至於誰將獲勝，所有三個細分市場都將積極爭奪這筆資金。但要明確說明的是，BEAD 專注於真正服務不足的農村客戶。事實上，當我圍繞這個問題與 NTIA 合作時，他們正在積極努力確保小型服務提供者確實參與，並且不會規模擴大，因為如果小型團隊實際上不參與 BEAD，那將是針對美國的。

Why? Because they're the ones who actually have invested in nowhere USA because they live there. They love their community and they've done those investments with or without government funding and the NTIA's reliant on them, continuing that community-centered mindset to make very rural situations successful.

為什麼？因為他們實際上沒有在美國任何地方進行投資，因為他們住在那裡。他們熱愛自己的社區，無論有沒有政府資助，NTIA 都依賴他們，他們都完成了這些投資，繼續以社區為中心的心態，使農村地區成功。

So anyone who says it's just going to be one segment or another, that I don't agree. We don't agree. It's going to be all three segments participating at different levels. And in all three segments, we have good relationships and -- or we'll be able to support them all.

因此，如果有人說這只是一個或另一個部分，我不同意。我們不同意。所有三個部分都將在不同層面上參與。在所有三個領域，我們都擁有良好的關係，或者我們將能夠支持所有這些領域。

Okay, great. And then finally for me, just looking past this, as we get to 2025, I know it's early to give an outlook for beyond one quarter or one year, but do you think that we can get back to a 10% to 15% type of growth rate in '25? Or do you think we'll be ramping towards that in sort of the first half of '25 and maybe don't get there until 2026 on the full-year basis? Just -- the long-term kind of annual growth rate starting in 2025, how are you thinking about it?

好的，太好了。最後對我來說，回顧這一點，當我們到2025 年時，我知道現在給出超過一個季度或一年的展望還為時過早，但您認為我們可以回到10% 到15% 的類型嗎'25 的成長率？或者您認為我們會在 25 年上半年加速實現這一目標，但全年可能要到 2026 年才能實現？只是——從 2025 年開始的長期年增長率，你是如何考慮的？

We did that consistently for four years and we expect that once we get through this peculiar indecision phase, that we will get back to that. And as I stated in my opening remarks, the first thing I stated is that the fundamental underlying -- underpinnings of this business is our platform cloud and managed services remained strong as best evidenced by the fact that we've got cash flow and margins continue to grow, customers understand.

我們四年來一直這樣做，我們希望一旦我們度過了這個特殊的猶豫不決的階段，我們就會回到那個階段。正如我在開場白中所說，我首先要說的是，這項業務的根本基礎是我們的平台雲和託管服務仍然強勁，這一事實最好地證明了我們的現金流和利潤率持續增長，客戶理解。

And this indecision period, as I stated, is an opportunity for them, take a deep breath, consider their future and what do they want to do over the next 5 to 10 years as opposed to just what's in front of them. And this creates the opportunity to have a very different conversation around how do you build a higher value business for your stakeholders, which can be members if you're a cooperative or shareholders if you're for profit. And this represents an opportunity for us to take footprint, which will then yield in 2025.

正如我所說，這個猶豫不決的時期對他們來說是一個機會，深吸一口氣，考慮他們的未來，以及他們在未來5 到10 年裡想要做什麼，而不是只考慮眼前的事情。這創造了機會，圍繞著如何為利害關係人建立更高價值的業務進行截然不同的對話，如果你是合作社，利害關係人可以是會員，如果你是為了獲利，利害關係人可以是股東。這對我們來說是一個留下足跡的機會，並將在 2025 年取得成果。

Great. Thanks very much.

偉大的。非常感謝。

Tim Savageaux, Northland Capital Markets.

Tim Savageaux，北國資本市場。

Hi, good morning. A couple of questions. And Michael, you hit on this briefly, but I want to go back to your green shoot commentary and see whether you had any more color on that, it was really -- and I have another question about revisiting kind of the share gain efforts that were discussed on the last call. You seemed to conflate those two and or any other signs of positive that activity throughout the customer base, small, medium or large that you would refer to are the green shoots? Or is it really your efforts to gain share?

嗨，早安。有幾個問題。邁克爾，你簡單地提到了這一點，但我想回到你的新芽評論，看看你是否對此有更多的看法，這確實是——我還有另一個問題，關於重新審視分享收益的努力，在上次通話中進行了討論。您似乎將這兩者和/或整個客戶群中任何其他積極活動的跡象混為一談，您所說的小型、中型或大型客戶群是綠芽嗎？或者說這真的是你為了獲得份額而做出的努力嗎？

Well, so -- as we -- when you go back during the pandemic, our lead times were as high as 18 months. During that situation, we had deep insight into what BSP was doing through because they actually had to give us their orders. And therefore, the pipeline affiliated with that. And over time, as we've gone through that over the last eight -- over the last few years, you've seen basically lead times go down to from six quarters down to, in essence, a single quarter. And therefore, logically, you would also see the pipeline affiliated with that also shift.

那麼，當你回顧疫情期間，我們的交貨時間高達 18 個月。在那種情況下，我們深入了解了 BSP 正在做什麼，因為他們實際上必須向我們下達命令。因此，管道與之相關。隨著時間的推移，正如我們在過去八年中經歷過的那樣，在過去幾年中，您已經看到交貨時間基本上從六個季度下降到本質上一個季度。因此，從邏輯上講，您也會看到與之相關的管道也會發生變化。

And we're now at a place where things have stabilized and we have our VAR back to actually seeing, from a green shoots point of view, significant pipeline growth, which gives us confidence in what's going to happen in second half.

現在我們的情況已經穩定下來，我們的 VAR 又回到了實際的狀態，從萌芽的角度來看，管道的顯著增長，這讓我們對下半年將發生的事情充滿信心。

At the same time, we continue to take footprint, as evidenced by -- I talked about a larger customers selecting us Smart business. That's a significant win, that's a brand-new business. And us closing not in Q1, but in Q2, in the first few weeks of the quarter, we closed our biggest cloud deal in the company's history.

同時，我們繼續擴大足跡，正如我談到的更大的客戶選擇我們的智慧業務所證明的那樣。這是一場重大勝利，這是一項全新的業務。我們不是在第一季完成的，而是在第二季完成的，在本季的前幾週，我們完成了公司史上最大的雲端交易。

And so we -- I go through those points. The pipeline growing, the strong -- closing the largest cloud deal. And then a larger customers selecting us to actually go after their small business market, which is in essence brand new business for us. This represents a significant opportunity and gives us confidence in the second half.

所以我們——我會回顧這些要點。管道不斷增長，實力強勁——完成了最大的雲端交易。然後，更大的客戶選擇我們來真正開拓他們的小型企業市場，這對我們來說本質上是全新的業務。這是一個重要的機會，讓我們對下半年充滿信心。

Great. And kind of following along from that, even, it's been maybe notable here in the last couple of quarters, is that even with the revenue side, you've seen gross margins continue to tick up. I imagine there's a mix aspect to that with the appliance business. And I guess a couple of -- as that perhaps recovers into the second half, what sort of impact do you expect it to have on the gross margin side? Which is -- could it blunt that sequential growth with hardware coming back? Or do you expect to see continued steady increases in gross margin throughout the year from greater software and service revenue?

偉大的。即使在過去的幾個季度中，值得注意的是，即使在收入方面，你也可以看到毛利率繼續上升。我想這與家電業務有一個混合的面向。我猜想，由於這種情況可能會在下半年恢復，您預計它會對毛利率產生什麼樣的影響？隨著硬體的回歸，它是否會削弱連續成長？或者您是否預期全年毛利率將因軟體和服務收入的增加而持續穩定成長？

Yeah, it's a great question, Tim. As we said throughout our platform cloud and managed services business continuing to grow, as our customers continue to take share and add new subscribers. So you've seen that persist and we'll continue to do so.

是的，這是一個很好的問題，提姆。正如我們在整個平台中所說的那樣，隨著我們的客戶不斷佔據份額並增加新訂戶，我們的平台雲端和託管服務業務持續成長。所以你已經看到這種情況持續存在，我們將繼續這樣做。

As the network -- new network builds come back, what you'll ultimately see is a shift in product back to more access, which has higher gross margins. So you won't see necessarily a decline in gross margins. I think you'll see the progression continue. The rate at which it changes from quarter to quarter will vary depending on those mixes.

隨著網路——新網路的建設回來，你最終會看到產品轉向更多的訪問，這具有更高的毛利率。因此，您不一定會看到毛利率下降。我想你會看到進展繼續下去。每個季度的變化率將根據這些組合而變化。

So for example, in the second quarter, the margin expansion is less than what it was in the first quarter. And it has to do with a lot of the product swinging back to the premises side in the second quarter. So inevitably, we think the margin will continue to progress. And I don't think you should think that'll pause because new network builds being decided.

例如，在第二季度，利潤率擴張低於第一季。這與第二季許多產品回到現場有關。因此，我們認為利潤率將不可避免地繼續上升。我認為你不應該認為這會因為新網路建設的決定而暫停。

Okay. Thanks very much.

好的。非常感謝。

Christian Schwab, Craig-Hallum Capital Group.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本集團。

Great. Hey, Cory, how long before the two large customers get back to $77 million from $20 million?

偉大的。嘿，科里，這兩個大客戶要多久才能從 2000 萬美元恢復到 7700 萬美元？

That's a great question. I'm not going to call that one. Obviously, last quarter, I was surprised by -- thought they would get to where they would make some decisions. I wasn't anticipating the decline that we saw. So yeah, I'm not going to dare to go out on a limb and say when that will recover back. We know it will recover at some point, just don't know when.

這是一個很好的問題。我不會稱呼那個人​​。顯然，上個季度，我感到驚訝——以為他們會做出一些決定。我沒有預料到我們會看到這種下降。所以，是的，我不會冒險說什麼時候會恢復。我們知道它會在某個時候恢復，只是不知道什麼時候。

Okay. So I mean, we havent been done $200 million in revenue over two years, right? And we're going to keep spending, almost [$110 million].

好的。所以我的意思是，兩年內我們的收入還沒有達到 2 億美元，對吧？我們將繼續支出，幾乎[1.1億美元]。

Say that again.

再說一次。

You haven't done quarterly revenue approaching $200 million in two years.

您已經兩年沒有季度收入接近 2 億美元了。

No, we did $265 million in the fourth quarter.

不，我們第四季的營收為 2.65 億美元。

We did $225 million -- $226 million in Q1.

第一季我們的營收為 2.25 億美元 - 2.26 億美元。

Yeah, Q1 of '22, you had $202 million and this quarter you're guiding to $200 million at the midpoint.

是的，22 年第一季度，您有 2.02 億美元，本季您的目標是中點 2 億美元。

Yeah, we did (inaudible) we did $226 million.

是的，我們做到了（聽不清楚），我們做到了 2.26 億美元。

We haven't done to $200 million for about two years.

我們已經有兩年多的時間沒有完成 2 億美元的投資了。

Yeah, okay --

是的，好的--

Sorry, we're playing along. We understand what you're saying. Go ahead, Christian.

抱歉，我們一起玩。我們明白你在說什麼。繼續吧，克里斯蒂安。

You could look at it. The point is, is your OpEx is significantly higher, right? and I know we're going to invest for growth. But we talked about a trickle of BEAD starting in the beginning of '25, but we have no idea when the large customers are coming back. How long do you hold this heavy OpEx on a quarterly basis?

你可以看看。關鍵是，您的營運支出明顯更高，對吧？我知道我們將為成長進行投資。但我們談到從 25 年初開始會有少量的 BEAD，但我們不知道大客戶何時會回來。按季度計算，您持有如此沉重的營運支出多久？

We understand that there's 60 million new fiber in that line coming. We also recognized, as we've identified for you, that -- and you see at the fundamental business model is actually growing margin. And therefore, it is strong. Customers are delaying for the very first time, their decision-making. And they've got the time, as I stated, as it was so eloquently put to me last week, where I can actually -- I couldn't actually we actually have the time to pour coffee, and now I'm willing to entertain these conversations.

據我們了解，該生產線即將推出 6,000 萬條新光纖。正如我們已經為您指出的那樣，我們也認識到，您在基本商業模式中看到的實際上是利潤成長。因此，它很強大。客戶第一次推遲了他們的決策。正如我所說，他們有時間，正如上週雄辯地向我提出的那樣，我實際上可以 - 我實際上不能，我們實際上有時間倒咖啡，現在我願意進行這些對話。

At this point in time, we will continue our OpEx investment because this is our opportunity to expand footprint as never before, ahead of one of the largest investments from the government in history. And to do anything but what we're doing would be wrong. And with our Board, our Chairman and our leadership team, we are confident in the opportunity to grow and that's going to yield significant returns. We are investing to win.

此時此刻，我們將繼續我們的營運支出投資，因為這是我們前所未有地擴大足跡的機會，領先政府歷史上最大的投資之一。除了我們正在做的事情之外，做任何事情都是錯的。與我們的董事會、董事長和領導團隊一起，我們對成長機會充滿信心，這將帶來可觀的回報。我們投資是為了獲勝。

Understood. Thank you. My last question is with recent expectations for 2024 and a once-in-a-generation lifetime with BEAD, and large customers who are significantly under spending, shouldn't the target growth rate for fiscal year '25 be 20% or substantially higher than that from the top line?

明白了。謝謝。我的最後一個問題是，根據最近對 2024 年的預期以及 BEAD 的千載難逢的生命週期，以及支出嚴重不足的大客戶，25 財年的目標增長率不應該是 20% 或大幅高於從頂行開始？

Possibly.

可能吧。

Possibly That's why we're quite comfortable putting 20%. That's why we stated that we see this 2024 as this oddity. And to your point, over the last four years, we've delivered four years of 20% growth, and we see a return to growth in 2025. And we're working that right now. We see the green shoots and all those different elements. So we're not calling '25 at this point, but we were just asked in the previous question, do we see the return of 10% to 15%? Yes.

也許這就是為什麼我們很樂意投入 20%。這就是為什麼我們說我們認為 2024 年很奇怪。就您而言，在過去四年中，我們連續四年實現了 20% 的成長，並且我們預計將在 2025 年恢復成長。我們現在正在努力。我們看到了萌芽和所有這些不同的元素。所以我們現在還沒有稱之為“25”，但我們只是在上一個問題中被問到，我們是否會看到 10% 到 15% 的回報？是的。

Okay, great. No other questions. Thank you.

好的，太好了。沒有其他問題。謝謝。

Thank you, Christian.

謝謝你，克里斯蒂安。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Fanucchi for any final comments.

謝謝。女士們先生們，我們的問答環節到此結束。我將把發言權轉回給 Fanucchi 先生，徵求最後的意見。

Thank you, Melissa. We will participate in several investor events during the second quarter. And information about these events, including the dates and times and publicly available webcast will be posted on the Events and Presentations page of our Investor Relations section of calix.com.

謝謝你，梅麗莎。我們將在第二季度參加一些投資者活動。有關這些活動的信息，包括日期和時間以及公開的網路廣播，將發佈在 calix.com 投資者關係部分的活動和演示頁面上。

Once again, we want to thank everyone on this call and webcast for your interest in Calix and for joining us. That concludes our conference call. Have a great day.

我們要再次感謝本次電話會議和網路廣播中的所有人對 Calix 的興趣並加入我們。我們的電話會議到此結束。祝你有美好的一天。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。