Calix Q4 2017 Financial Results

February 13, 2018

Proprietary and Confidential

Safe Harbor

2

This presentation includes forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. Such statements relate to future events and

expectations and involve known and unknown risks and uncertainties. Examples of

forward-looking statements include, but are not limited to, statements about our anticipated

growth and growth drivers; our future financial condition and results of operations; our

future business, financial and operating performance; our growth strategy and market

outlook; our development of new products and product features; our estimates and

planned cost savings related to our restructuring plan; and the success and/or market

adoption of our products and solutions. We have based these forward-looking statements

on our current expectations, assumptions and projections. Our actual results or actions

may differ materially from those projected in forward-looking statements. These forward-

looking statements are subject to a number of risks, uncertainties and factors that could

cause results to differ materially as described in our filings with the Securities and

Exchange Commission, including our annual report on Form 10-K and quarterly reports on

Form 10-Q. Except as may be required by law, we undertake no obligation to, and

expressly disclaim any obligation to, update or alter any forward-looking statements,

whether as a result of new information, future events, changes in assumptions or

otherwise.

Please refer to the reconciliations of GAAP to non-GAAP financial measures in the supplemental information and on the Investor Relations section of calix.com.

Proprietary and Confidential

Participants

▪ Carl Russo, President & CEO

▪ Cory Sindelar, CFO

▪ Tom Dinges, CFA, Director of Investor Relations

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Opening Remarks

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Proprietary and Confidential

Q4 2017 Financial Results vs. Guidance

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Please refer to the reconciliations of GAAP to non-GAAP financial measures in the supplemental information and on the Investor Relations section of calix.com.

($ in millions, except percentages

and per share amounts)

Actual Non-

GAAP

Guidance Non-GAAP Actual GAAP Reconciliation of

Guidance to GAAP

Revenue $137.9M $140 - $145M $137.9M $140 - $145M

Gross margin 36.8% 36.5 – 38.5% 36.7% 36.4 – 38.4%

Operating expenses $58.5M(1) $59.0 - $61.0M(1) $63.3M $63.4 - $65.4M

Net loss per share ($0.15)(1) ($0.15) – ($0.10)(1) ($0.25) ($0.24) – ($0.19)

Operating cash flow Negative ($34.1M)

(1) Excludes the impact from non-GAAP items including stock-based compensation and restructuring charges.

Proprietary and Confidential

Revenue

▪ Total revenue +5% y/y

▪ Products -5% y/y

▪ Services +136% y/y

▪ Domestic +3% y/y

▪ International +14% y/y

Non-GAAP gross margin

▪ Products margin down q/q on inventory charge

▪ Services margin improved q/q-closed out services projects and benefits from process improvements

Non-GAAP operating expenses

▪ Flat q/q as benefits of leverage from software platform

▪ Offset normal seasonal spending and incentive comp higher revenues

Non-GAAP EPS

▪ Negatively impacted by lower gross margins

▪ Offset by lower operating expenses

Guidance Range

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Q4 2017 Statement of Operations Highlights

Please refer to the reconciliations of GAAP to non-GAAP financial measures in the supplemental information and on the Investor Relations section of calix.com.

(35.0%)

(25.0%)

(15.0%)

(5.0%)

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Products Services

$60.0M

$70.0M

$80.0M

$90.0M

$100.0M

$110.0M

$120.0M

$130.0M

$140.0M

$150.0M

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Domestic International

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Operating Expenses as a % of Revenue

R&D S&M G&A Litigation Expense

($0.09)

($0.04)

$0.12

($0.14)

($0.57)

($0.30)($0.28)

($0.15)

($0.60)

($0.50)

($0.40)

($0.30)

($0.20)

($0.10)

$0.00

$0.10

$0.20

1 Q 1 6 2 Q 1 6 3 Q 1 6 4 Q 1 6 1 Q 1 7 2 Q 1 7 3 Q 1 7 4 Q 1 7

NO

N-G

AA

P E

PS

Proprietary and Confidential

Q4 2017 Balance Sheet & Cash Flow Highlights

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Cash of $39.8M

▪ Cash conversion cycle increased 11 days q/q due to deferred payments

▪ Includes $1.2M in capital expenditures

▪ Reflects $30M in borrowings

Inventory velocity

▪ Quarterly record inventory turns

▪ Continued benefits from process improvements to simplify product and component commonality

Operating cash flow

▪ Deferred payments negatively impacted cash flow

▪ Partial offset by record low inventory days

Non-GAAP cash conversion cycle

▪ Record inventory turns offset by increased receivable days

▪ Second lowest quarterly cash conversion cycle over past four years

Please refer to the reconciliations of GAAP to non-GAAP financial measures in the supplemental information and on the Investor Relations section of calix.com.

$64.3M $64.2M$61.3M

$78.1M

$51.5M $50.2M

$70.8M

$39.8M

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

$5.3M

$0.1M

-$0.1M

$19.2M

-$23.5M

$2.0M

-$7.2M

-$34.1M

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

100 Days103 Days

87 Days81 Days

90 Days

70 Days

48 Days

59 Days

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

174.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x

10.0 x

$30.0M

$32.0M

$34.0M

$36.0M

$38.0M

$40.0M

$42.0M

$44.0M

$46.0M

$48.0M

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

Inventory

InventoryTurns (Non-GAAP)

Proprietary and Confidential

Q1 2018 Operating Performance Guidance

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($ in millions, except percentages and per share

amounts)

Guidance Non-GAAP

Reconciliation of

Guidance to GAAP

Revenue $102 - $108M $102 - $108M

Gross margin 39.0 – 41.0% 38.8 – 40.8%

Operating expenses $49.5 - $51.5M(1) $55.0 - $57.0M

Net loss per share ($0.20) – ($0.16)(1) ($0.32) – ($0.28)

Operating cash flow Positive

(1) Excludes the impact from non-GAAP items including stock based compensation, restructuring charges and estimated gain on sale of assets.

Please refer to the reconciliations of GAAP to non-GAAP financial measures in the supplemental information and on the Investor Relations section of calix.com.

Strategy Update

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Q&A

10

Proprietary and Confidential

Additional Information

Additional information available at: http://investor-relations.calix.com/

• Stock Information

• News & Financial Information

• Events & Presentations

• Leadership & Governance

• Investor Resources

Supplemental Information

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Proprietary and Confidential

GAAP to Non-GAAP Reconciliation

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(Unaudited) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Revenue $98,375 $107,425 $121,187 $131,800 $117,518 $126,123 $128,827 $137,899

GAAP cost of revenue $52,893 $57,419 $67,643 $79,614 $83,141 $82,800 $84,194 $87,342

Stock-based compensation (127) (183) (174) (188) (172) (171) (206) (200)

Amortization of intangibles (1,663) (814) (813) (814) (813) 0 0 0

Non-GAAP cost of revenue $51,103 $56,422 $66,656 $78,612 $82,156 $82,629 $83,988 $87,142

GAAP gross profit $45,482 $50,006 $53,544 $52,186 $34,377 $43,323 $44,633 $50,557

GAAP gross margin 46.2% 46.5% 44.2% 39.6% 29.3% 34.3% 34.6% 36.7%

Stock-based compensation 127 183 174 188 172 171 206 200

Amortization of intangibles 1,663 814 813 814 813 0 0 0

Non-GAAP gross profit $47,272 $51,003 $54,531 $53,188 $35,362 $43,494 $44,839 $50,757

Non-GAAP gross margin 48.1% 47.5% 45.0% 40.4% 30.1% 34.5% 34.8% 36.8%

Q1 2016 – Q4 2017 Cost of Revenue and Gross Margin

($ in thousands, except percentages and per share amounts)

Proprietary and Confidential

Unaudited Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

GAAP gross margin – products 48.0% 48.6% 46.8% 43.7% 37.4% 45.7% 47.9% 44.2%

Stock-based compensation 0.1% 0.7% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

Amortization of intangibles 1.8% 0.8% 0.7% 0.7% 0.9% 0.0% 0.0% 0.0%

Non-GAAP gross margin - products 49.9% 49.5% 47.6% 44.4% 38.4% 45.8% 48.0% 44.3%

GAAP gross margin – services 22.3% 18.7% 2.5% -15.7% 0.6% -30.5% -28.2% -4.5%

Stock-based compensation 0.6% 0.8% 0.8% 0.7% 0.2% 0.4% 0.3% 0.3%

Non-GAAP gross margin – services 22.9% 19.5% 3.2% -15.0% 0.8% -30.1% -27.9% -4.2%

GAAP to Non-GAAP Reconciliation

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Q1 2016 – Q4 2017 Products and Services Gross Margin

Proprietary and Confidential

Outlook Q1 2018

GAAP gross margin 38.8% - 40.8%

Stock-based compensation 0.2%

Non-GAAP gross margin 39.0% – 41.0%

GAAP operating expenses $ 55,460 - $ 57,460

Stock-based compensation (2,960)

Restructuring charges (3,000)

Non-GAAP operating expenses $49,500 - $51,500

GAAP net loss per diluted share ($0.32) – ($0.28)

Stock-based compensation 0.06

Restructuring charges 0.06

Non-GAAP net loss per basic & diluted share (1) ($0.20) – ($0.16)

GAAP to Non-GAAP Reconciliation

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Q1 2018 Operating Performance Outlook

(1) Based on 51.7 million basic & diluted shares

($ in thousands, except percentages and per share amounts)