| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3371 Registered: 05-2011 Posted From: 65.35.45.47 Rating: N/A |
Calix (CALX) is a supplier of cloud and software platforms, systems and services. It primarily sells broadband access equipment to communications service providers (CSPs), including carriers and cable companies. Given more activity taking place at home, Calix has seen greater strain on service provider broadband networks. This in turn requires service providers to respond by increasing capacity on their networks to handle the higher data traffic, which has boosted demand for Calix's products. Last week, Calix reported Q3 results that set quarterly records across nearly all metrics and were well above prior guidance. Overall demand was robust with revenue growth being led by its small customers. Overall, Calix is seeing very strong demand as CSPs deal with the huge increases in network traffic. Calix concedes that the larger portion of the current overperformance in demand is a pull forward to relieve short-term network capacity constraints. So hopefully this dynamic does not become a headwind in 2021, but we'll keep an eye on it. The stock jumped on the robust Q3 results and has been steadily climbing since late April as the name has been getting on more radar screens. |