Calix, Inc. (CALX) Earnings Call Transcript & Summary

Good day, and welcome to the Calix, Inc. Annual Meeting of Stockholders. I would now like to turn the call over to Cory Sindelar. Please go ahead, sir.

Good morning. It's my pleasure to welcome you to the 2020 Annual Meeting of Stockholders of Calix, Inc. This is Cory Sindelar, Chief Financial Officer of Calix, and I will preside at this meeting. Calix is pleased to, once again, conduct our Annual Meeting of Stockholders as a virtual meeting, and we thank you for joining us during these challenging times. While we will not make a formal company presentation, we will leave time at the end of the meeting for questions. Also present at today's meeting is Carl Russo, Calix's President and Executive Officer and member of our Board of Directors; along with Don Listwin, Chairman of our Board of Directors; and Calix's Board members, Chris Bowick, Kevin DeNuccio, Mike Everett, Kathy Crusco, Kira Makagon, Michael Matthews, Kevin Peters and Dan Plants. In addition, Richard Robbins, partner with KPMG LLP, Calix's independent registered public accounting firm, is present for any questions. Suzanne Tom, Calix's Senior Vice President and General Counsel, will act as Secretary of the meeting. We have appointed Beth VanDerbeck of the Carideo Group as -- to act as Inspector of Election. Ms. VanDerbeck has taken the customary oath of office and has delivered an affidavit of distribution, establishing that notice of this meeting was properly given. All stockholders of record at the close of business on March 18, 2020, are entitled to vote at this meeting. The Inspector of Election has examined the proxies received and reports that the holders of the majority of Calix's common stock shares outstanding, as of March 18, 2020, are represented at this meeting. Therefore, a quorum is present, and we may proceed. The agenda for this meeting is displayed on the virtual meeting web page. I will now summarize the 5 proposals to be voted on today, which are described in more detail in our proxy statement. As a reminder, you may view our proxy statement along with our annual report on Form 10-K via the link on our virtual meeting web page. After summarizing the 5 proposals, I will invite questions on any of the proposal, which may be submitted to us online via the ask-a-question box in the lower-left portion of your screen. If you have a question on any proposal, please enter it into that box and click submit. We will answer questions regarding the proposal submitted online through the ask-a-question box. After the proposals have been summarized and questions addressed, I will open the polls for voting on all pending proposals. If you have previously voted by proxy, you do not need to vote today unless you wish to change your vote. The first proposal is the election of 3 Class 1 directors to serve until our Annual Meeting of Stockholders in 2023 or until their successors are elected and qualified. The Calix Board of Directors recommends the election of Kathy Crusco, Kevin DeNuccio and Michael Everett. No other Director nominations were received, and the nominations are therefore closed. The second proposal is to approve our amended and restated 2019 equity incentive award plan to increase the number of shares of common stock issuable under the 2019 plan by 3.5 million shares. The Board of Directors recommends approval of this proposal. The third proposal is to approve our amended and restated 2017 nonqualified employee stock purchase plan to amend certain terms and to increase the number of shares of common stock issuable under the plan by 1.2 million shares. The Board of Directors recommends approval of this proposal. The fourth proposal is to approve on a nonbinding advisory basis, the compensation of Calix's named Executive Officers, as disclosed in our proxy statement. The Board of Directors recommends approval of this proposal. The fifth proposal is to ratify the selection by our Audit Committee of KPMG LLP, as Calix's independent registered public accounting firm for the year ending December 31, 2020. The Board of Directors recommends the ratification of this selection. Are there any questions on any of these 5 proposals? I will pause for a moment to allow for transmittal of questions. Seeing no questions, we will proceed. Voting on these proposals is by proxy and by online voting from those in attendance. The polls are now open. If you previously voted by proxy, you need not vote today unless you wish to change your vote. If you wish to vote today or change your proxy vote, you may do so on the meeting web page by clicking on the vote-here link in the lower right portion of your screen. I will pause a few moments for you who are voting online today to complete the voting process. [Voting]

We will close the polls in just a moment, so please complete your voting at this time. [Voting]

It is now 10:39 a.m. Pacific time. The polls are now closed, and voting on the proposals set forth on the notice of Annual Meeting is now concluded. The inspector of elections will tabulate the votes. Will the Secretary please report the results of the voting?

Yes. We have been informed by the inspector of election that the results of the voting are as follows: Kathy Crusco, Kevin DeNuccio and Michael Everett are each elected as Class 1 Directors to serve until our Annual Meeting of Stockholders in 2023 or until their successors are elected and qualified. The amended and restated 2019 equity incentive award plan is approved. The amended and restated 2017 nonqualified employee stock purchase plan is approved. The compensation of Calix's named Executive Officers, as disclosed in our proxy statement, is approved on a nonbinding advisory basis. And the selection of KPMG LLP as Calix's independent registered public accounting firm for the year ending December 31, 2020, is ratified. The inspector of election will make a final report that will be included as part of the minutes of the meeting. Final voting results will be published by Calix in a report on Form 8-K, which will be filed with the Securities and Exchange Commission.

This concludes the formal portion of the meeting. If you have any questions, I'll invite you to submit them at this time. Seeing no question, the meeting is now adjourned. I thank you for attending this meeting and for your ongoing support of Calix. Have a good day.

The meeting has concluded. We thank you for attending.