What changed in this filing

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Item 1. Business

2023-02-21 compared with 2022-02-22 · 110 added, 105 removed, 121 unchanged (64% of the section changed)

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Calix was founded in 1999.

We develop and market cloud and software platforms, systems and services that enable BSPs of all types and sizes to innovate and transform their business.

For our customers to successfully transform their businesses into the winning broadband providers of the future, they require actionable data for critical business functions such as network operations, customer support and marketing.

We develop, market and sell our Calix platform (cloud, software and systems) and managed services that enable service providers of all types and sizes to innovate and transform their businesses.

For our customers to successfully transform their businesses into the innovative broadband service providers, or BSPs, of the future, they require actionable data for critical business functions such as network operations, customer support and marketing.

However, this data is often trapped in disparate systems or departmental silos.

Our Calix Cloud platform gathers, analyzes and applies machine learning to deliver real-time insights seamlessly to each key business function.

Our Calix platform, which includes Calix Cloud, Revenue EDGE and Intelligent Access EDGE, gathers, analyzes and applies machine learning to deliver real-time insights seamlessly to each key business function.

Our customers utilize these data and insights to simplify network operations, marketing and customer support and deliver experiences that excite their subscribers.

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to enable BSPs of all sizes to simplify, excite and grow.

We believe our platforms offer a competitive edge to BSPs at a critical time of increasing competition from direct-to-consumer device providers as they expand their reach and focus on owning the connected home experience.

For example, these competing device providers are entering the home by offering Wi-Fi enabled devices, and then leveraging behavioral insights to expand their direct relationship and brand with the subscriber by offering additional consumer services.

Over time, we expect this competition can erode a BSP’s brand and relationship with their subscribers, by reducing broadband to an easy-to-replace commodity, which can increase churn and reduce revenue.

Our platforms enable BSPs to compete with higher value managed services offerings for their subscribers.

Innovative BSPs, who are embracing our platforms, understand this competitive threat and that their brand’s central position in the home is strategic.

We believe our platform offers a competitive edge to BSPs at a critical time of increasing competition from direct-to-consumer cloud companies and device providers as they expand their reach and focus on owning the connected home experience.

For example, these competitors are entering the home by offering Wi-Fi enabled devices, and then leveraging behavioral insights to expand their direct relationship and build their brand with the subscriber by offering additional consumer services.

Over time, we expect this competition can erode a BSP’s brand and relationship with its subscribers, by reducing broadband to an easy-to-replace commodity, which can increase churn and reduce revenue.

Our platform enables BSPs to build next generation networks and offer higher-value managed services offerings that enable them to grow revenue, increase subscriber loyalty and monetize their network investments.

Innovative BSPs, who are embracing our platform, understand this competitive threat and that their brand’s central position in the home is their most valuable strategic asset.

As such, they must protect and expand continually.

Our Intelligent Access EDGE network solution and Revenue EDGE subscriber solution are designed to allow BSPs to simplify their business and reduce operating costs, while launching exciting new services in a matter of days and weeks instead of months and years.

Our role-based clouds enable BSP teams, such as marketing, operations and support, to leverage real-time behavioral analytics to anticipate the subscriber’s needs, whether that is optimized broadband speed or a new, differentiated service offering.

The BSP’s teams can then utilize these insights to offer new and innovative services to those subscribers who have the propensity to buy, thereby growing revenue as they deliver a connected home experience at significantly lower operating costs.

To expand our reach in the market, w e will continue to pursue strategic technology and distribution relationships that align with BSPs’ strategic priorities.

At the same time, we offer our Calix Customer Success and Support Services along with a growing portfolio of market activation resources that provide the BSP with best practices and programs to strengthen and grow their brand with their subscribers, thereby increasing subscriber loyalty and opportunities to grow their subscriber base.

Our Intelligent Access EDGE network solution and Revenue EDGE subscriber solution are designed to allow BSPs to simplify their businesses and reduce operating costs, while launching exciting new services in a matter of days and weeks instead of months and years.

Our role-based cloud enables BSP teams, such as marketing, operations or customer support, to leverage real-time behavioral analytics to anticipate the subscriber’s needs, whether that is optimized broadband speed, managed Wi-Fi or a new, differentiated managed service offering such as home network security, content control and connected cameras.

Our platform is built to enable BSPs to deploy a growing ecosystem of third-party solutions such as Arlo Secure and Bark Social as fully managed services quickly and easily.

This enables the BSP to add significant value to what were previously just “over-the-top” solutions.

We are also enabling deeper integration with workflow solutions such as Facebook and solutions from independent software vendors such as National Information Solutions Cooperative, or NISC.

This level of integration enables BSPs to simplify and streamline their operations and go-to-market execution.

The BSPs’ teams can then utilize insights from Calix Cloud to offer these new and innovative services to those subscribers who have the propensity to buy, thereby growing revenue as they deliver a connected home experience at significantly lower operating costs.

This also enables them to build their brand and value proposition around innovation and subscriber experience.

As a result, many of Calix’s BSP customers have experienced improved customer satisfaction scores, minimal churn and significant growth.

To expand our reach in the market, we will continue to pursue strategic technology and distribution relationships that align with BSPs’ strategic priorities.

At the same time, we offer our Calix Customer Success and Support Services along with a growing portfolio of market activation resources that provide the BSPs with best practices and programs to strengthen and grow their brand with their subscribers, thereby increasing subscriber loyalty and opportunities to grow their subscriber base.

Strategy Overview

Our strategy is to position Calix as the key partner providing cloud and software platforms, systems and services to enable and facilitate the transformation of BSP networks into networks that utilize real-time data generated in the access network and subscriber home network in order to provide an exceptional broadband experience for their subscribers.

Our strategy is to position Calix as the key partner providing a broadband delivery platform (cloud, software and systems) and managed services to enable and facilitate the transformation of BSP access networks and the home network experience in order to provide an exceptional broadband experience for their subscribers.

Most BSPs will require significant transformation of their business and operations to become an essential provider of data-driven, high-value managed services to their subscribers.

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Starting with the data – The principal way we gather, analyze and deliver actionable insights for BSPs is via the Calix Cloud.

Our role-based Cloud platforms enable critical functions within a BSP’s business, such as marketing, operations and support, to leverage real-time data to continually understand and optimize the experience for their subscribers.

Building and evolving our platforms – Our product strategy centers on our strategic platforms.

These platforms simplify BSPs’ businesses by delivering intelligence and automation across the entire subscriber facing network – from the data center edge to the subscriber’s devices.

Our strategy is to continually augment and extend these platforms with features and services directly or through partners to allow our customers to deliver cutting-edge services to their subscribers.

Engaging Directly with Customers – We continue to invest in our direct sales capabilities so that we can engage deeply with our customers to help them understand the differentiable value that our platforms provide.

As we deploy new solutions, we are building the expertise of our team by adding specialized resources in areas such as marketing, cloud platforms and network operations.

Our direct model is complemented with selective programs for our channel partners, who have established local

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market expertise and have demonstrated the ability to generate new market opportunities and support sales of cutting-edge technologies for BSPs.

Expanding Customer Footprint Across Our Total Addressable Market – Our total addressable market includes BSPs of any type and size, including local and competitive exchange carriers, cable multiple system operators, or cable MSOs, wireless internet service providers, or WISPs, fiber overbuilders such as municipalities and electric cooperatives and hospitality providers.

In 2021, we added 130 BSP customers purchasing directly or through our partners.

Our diverse and growing customer footprint is a critical source of our future growth as we expand our portfolio and sell additional platforms to both new and existing customers.

Our platforms expand our total addressable market and recurring revenue streams by allowing us to address the needs of not only traditional wireline-focused BSPs, but also emerging service providers.

Our role-based Calix Cloud enables critical functions within a BSP’s business, such as marketing, operations and support, to leverage real-time data to continually understand and optimize the experience for their subscribers.

Building and evolving our platform – Our product strategy centers on our strategic platform.

Our platform simplifies BSPs’ businesses by delivering intelligence and automation across the entire subscriber facing network – from the data center edge to the subscriber’s devices.

Our strategy is to continually augment and extend our platform with features and services directly or through partners to allow our BSP customers to deliver cutting-edge services to their subscribers.

Engaging directly with customers – We continue to invest in our direct sales capabilities so that we can engage deeply with our customers to help them understand the differentiable value that our platform provides.

As we deploy new solutions, we are building the expertise of our team by adding specialized resources in areas such as marketing, cloud and network operations.

Our direct model is complemented with selective programs for our channel partners, who have established local market expertise and have demonstrated the ability to generate new market opportunities and support sales of cutting-edge technologies for BSPs.

Expanding customer footprint across our total addressable opportunity – Our total addressable opportunity includes service providers of any type and size, including local and competitive exchange carriers, cable multiple system operators, or cable MSOs, wireless internet service providers, or WISPs, fiber overbuilders such as municipalities and electric cooperatives and hospitality providers.

We have added over 100 new BSP customers per year for the past three years purchasing directly or through our partners.

Our diverse and growing customer footprint is a critical source of our future growth as we expand our portfolio and sell additional components of our platform and managed services to both new and existing customers.

Our platform expands our total addressable opportunity and recurring revenue streams by allowing us to address the needs of not only traditional wireline-focused service providers, but also emerging service providers.

As such, we intend to continue to engage emerging providers that are creating entirely new customer segments, including fiber overbuilders, utilities and municipalities.

We will also continue to pursue service provider segments where our current share is relatively low, such as cable MSOs, large CSPs and international markets.

We will also continue to pursue service provider segments where there is an opportunity to grow our current share, such as cable MSOs, large traditional wireline-focused service providers and international markets.

Extending portfolio of Calix services – Our services team, Calix Services, supports our BSPs as they define their transformation strategies, build new skills, implement new technologies and deploy new subscriber services.

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We continue to invest to provide interoperability across the ecosystems that support our customers’ most critical business processes through our partner programs.

By adding new solutions to our platform ecosystem, we significantly enhance the value that our platforms deliver to BSPs.

By adding new solutions to our platform ecosystem, we significantly enhance the value that our platform delivers to BSPs.

In addition, we are expanding our relationships with organizations that help our customers plan and execute in market.

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Product Overview

Our product strategy centers on increasing the market adoption of our three product platforms - Calix Cloud ® , which comes in three role-base editions:

Our product strategy centers on increasing the market adoption of our platform, which consists of:

• Calix Cloud ® , which comes in three role-base editions:

Calix Marketing Cloud, Calix Support Cloud and Calix Operations Cloud;

EXOS ® , which is marketed as the Experience Innovation Platform;

and AXOS ® , which is marketed as the Network Innovation Platform.

These platforms are sold independently and are also offered as two strategic solutions that make BSP adoption simple and quick:

the “Revenue EDGE” and the “Intelligent Access EDGE.”

• Calix Revenue EDGE, our premises solution for subscriber managed services;

• Calix Intelligent Access EDGE, access network solution for automated, intelligent next generation networks.

These platform offerings are sold independently and offer unique entry points for new customers who are partnering with Calix to transform their businesses.

However, an increased segment of our customers is leveraging all three components of our platform in an end-to-end strategy to simplify their businesses, excite their subscribers and grow the value that they deliver for their subscribers and communities.

The Revenue EDGE

The Revenue EDGE is a subscriber experience solution designed to enable BSPs to rapidly deploy new subscriber services to grow their business.

The solution is built on EXOS, our carrier-class premises operating system, and fully integrated with our GigaSpire ® family of systems to be ready for deployment as a complete subscriber experience solution for a BSP’s residential and business subscribers.

The Revenue EDGE is a subscriber experience solution designed to enable BSPs to rapidly deploy new subscriber services to grow their businesses.

The platform is built on Experience Innovation Platform component (formerly known as EXOS) and fully integrated with our GigaSpire ® and GigaPro ® family of systems to be ready for deployment as a complete subscriber experience platform for a BSP’s residential subscribers, small business subscribers and community networks.

The Revenue EDGE also integrates real-time subscriber insights via our Calix Marketing Cloud, Calix Support Cloud and Calix Operations Cloud offerings, which are configurable to display role-based insights.

These insights enable BSPs to anticipate and target new revenue-generating services and applications through our mobile application, CommandIQ ® , and expanding EDGE Suites offerings.

Our Cloud offerings are also being integrated with other market leading platforms and solutions like Facebook, Mailchimp and HubSpot to further simplify BSP processes and accelerate their time to market.

We offer additional cloud-based services with the Revenue EDGE, which we refer to as EDGE Suites.

Today they include features for network security and parental controls.

We continue to expand these services with integrated third-party cloud offerings from our ecosystem Revenue EDGE partners such as Arlo Technologies, Inc., or Arlo, and Service Lee Technologies Private Limited, or Servify.

Finally, we offer Revenue EDGE Enablement resources to provide BSP teams with resources to quickly deploy, manage and monetize the services that they provide to subscribers.

These insights enable BSPs to anticipate and

target new revenue-generating services and applications through our mobile application, CommandIQ ® , and expanding portfolio of managed services.

Our Cloud enables simple integrations with other market leading workflow solutions for Marketing, including Facebook, Mailchimp, Constant Contact and HubSpot, support ticketing solutions and operations support systems and business support systems to further simplify BSP processes and accelerate their time to market.

Calix customers are evolving their go-to-market strategies to go beyond marketing broadband speed.

Increasingly, they are becoming “experience” providers by delivering valuable managed services built on top of their Wi-Fi offerings.

To date, Calix has launched nine managed services.

This unique portfolio gives BSPs more opportunities to provide differentiated services to their subscribers and grow their revenue.

The Revenue EDGE managed services portfolio enables BSPs to enter new markets for small businesses and communities, as well as expand their residential footprints.

By leveraging the power of the Calix platform, BSPs of any size can simplify their businesses, excite their subscribers and grow value in their communities.

• Managed Wi-Fi enables BSPs to actively manage all aspects of the subscriber’s Wi-Fi experience, ensuring they enjoy improved speeds, performance and Wi-Fi coverage that extends throughout their homes.

• Command IQ is an intuitive mobile app designed to be branded by each BSP and provides their subscribers with visibility and control to understand and manage their connected experience.

• Experience IQ offers the subscriber a full set of tools to manage and monitor each connected device in the home and the content it has access to.

• Protect IQ is a network-level security application that works quietly in the background and proactively keeps malicious websites, viruses and intrusions away from subscribers’ homes 24x7.

• Arlo Secure, a third-party application, enables BSPs to offer peace of mind to their subscribers with a fully managed connected camera solution.

• Bark, a third-party application, is an integrated cutting-edge social monitoring service that scans over 30 of the most popular apps and social media platforms to alert parents and caregivers of issues like cyberbullying, online predators and sexual content.

• Servify Care, a third-party application, enables BSPs to protect all eligible devices in a home under the same easy-to-use plan and potentially save subscribers hundreds of dollars annually.

• SmartTown is an innovative solution to enable BSPs of any size to connect people with private, secure and safe Wi-Fi experiences in town, at parks, at outdoor events and on the go.

• SmartBiz is an all-in-one integrated managed service to deliver a purpose-built, broadband solution to address the needs of the 34 million small businesses across the United States and Canada.

Finally, to support these managed services, we offer Market Activation resources and programs to enable BSP teams to quickly deploy, manage and monetize each service that they provide to subscribers.

These resources include marketing content that can be easily customized with on-line tools, training programs, success services and professional services.

The Intelligent Access EDGE

The Intelligent Access EDGE solution is built on the award-winning Calix AXOS software platform and redefines the access edge of the network by simplifying its architecture and operations.

AXOS is implemented in our E-Series family of modular, non-blocking systems, enabling BSPs to meet a wide variety of deployment scenarios.

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The Intelligent Access EDGE solution is built on the award-winning Network Innovation Platform component (formerly known as AXOS) and redefines the access edge of the network by simplifying its architecture and operations.

The Network Innovation Platform component is implemented in our E-Series family of modular, non-blocking systems, enabling BSPs to meet a wide variety of deployment scenarios.

The Intelligent Access EDGE allows BSPs to collapse multiple network elements in the access network into a single system and by using specialized software modules to add functionality and remove complexity, the solution reduces the total cost of ownership and the time to market for new services.

In addition, insights delivered through Calix Operations Cloud enable BSPs to more effectively monitor network performance and more efficiently address performance issues.

In addition, insights delivered through Calix Operations Cloud enable BSPs to monitor network performance more effectively and address performance issues more efficiently.

Intelligent Access EDGE Enablement services are designed to ensure BSP teams are fully enabled to deploy and manage next generation networks.

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We continue to support and offer customers our traditional family of EXA and GigaCenter ® Systems that are widely deployed in customer networks, primarily in North America.

We expect that these products will continue to be utilized in our customers’ networks for many years to come.

We market and sell our cloud and software platforms, systems and services to BSPs of all types and sizes.

To date, we have focused primarily on BSPs in the North American market.

We expect that these products will continue to be utilized in our customers’ networks in addition to our newer platform offerings.

We market and sell our platform (cloud, software and systems) and managed services to service providers of all types and sizes.

To date, we have focused primarily on service providers in the North American market.

Our customers span all sizes of broadband subscriber count from a few hundred to more than six million.

Our customers include:

We have enabled approximately 1,900 service providers, purchasing directly and through partners, to deploy passive optical, Active Ethernet and point-to-point Ethernet fiber access networks.

Our service provider customers include:

ALLO Communications;

Connect Holding II, LLC (dba Brightspeed);

CityFibre Holdings Limited;

Conexon Connect;

Cox Communications;

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(formerly known as CenturyLink, Inc.), or Lumen;

Paul Bunyan Communications;

Silver Star Communications;

TDS Telecommunications LLC;

Windstream Holdings, Inc., or Windstream;

Windstream Holdings, Inc.

and Verizon Communications, Inc.

We classify BSPs into large, medium and small based on the number of broadband subscribers they serve.

Large BSPs are those with wide geographic footprints and broadband subscribers of 2.5 million or more.

Medium BSPs also operate typically within a wide geographic footprint but are smaller in scale with broadband subscribers that range from 250,000 to 2.5 million.

Small BSPs consist primarily of over 1,000 predominantly local independent operating companies, or IOCs, typically focused on a single community or a cluster of communities.

Federal government has approved programs, totaling more than $60 billion, to fund broadband and connectivity expansion across the United States.

Calix has a dedicated team of funding specialists, assisting our customers with the most up-to-date information on broadband funding opportunities as they are introduced and personalized strategies to maximize their grants to support their growth.

We classify service providers into large, medium and small based on the number of broadband subscribers they serve.

Large service providers are those with wide geographic footprints and broadband subscribers of 2.5 million or more.

Medium service providers also operate typically within a wide geographic footprint but are smaller in scale with broadband subscribers that range from 250,000 to 2.5 million.

Small service providers consist primarily of over 1,000 predominantly local independent operating companies, or IOCs, typically focused on a single community or a cluster of communities.

They include a growing number of municipalities, electric cooperatives, fiber overbuilders and WISPs.

These entities range in size from a few hundred to 250,000 broadband subscribers.

Historically, Lumen has accounted for more than 10% of total revenue, representing 11% in 2020 and 15% in 2019 .

Our efforts to grow our product platforms, add new CSP customers and shift away from low value deployment services have all contributed to Lumen representing less than 10% of our total revenue in 2021.

No other customer represented more than 10% of total revenue in 2021, 2020 and 2019.

Sales to customers outside the United States represented 17% of our revenue in 2021, 13% of our revenue in 2020 and 14% of our total revenue in 2019.

Historically, Lumen accounted for more than 10% of revenue and represented 11% of revenue in 2020.

Our efforts to grow our Calix platform, add new BSP customers and shift away from low-value deployment services primarily related to Lumen have all contributed to Lumen representing less than 10% of our revenue in 2022 and 2021.

No other customer represented more than 10% of revenue in 2022, 2021 and 2020.

Sales to customers outside the United States represented 9% of our revenue in 2022, 17% of our revenue in 2021 and 13% of our revenue in 2020.

Our sales outside the United States have been and are currently predominantly to customers in the Americas and Europe.

Customer Engagement Model

We market, sell and support the success of our cloud and software platforms, systems and services predominantly through our direct sales force, supported by marketing, product management and customer success personnel.

We have expanded this model to include select channel partners in North America and more than 40 international channel partners.

We market, sell and support the success of our platform (cloud, software and systems) and managed services predominantly through our direct sales force, supported by marketing, product management and customer success personnel.

We have also expanded this model to include select channel partners in North America and more than 40 international channel partners.

Even in circumstances where a channel partner is involved, our sales and marketing personnel are generally selling side-by-side with the channel partner.

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Our research and development team is composed of engineers with expertise in software and cloud platforms, optics, wireless technologies and systems engineering.

Our research and development team is responsible for designing, developing and enhancing our cloud and software platforms and systems, performing product and quality assurance testing and ensuring the compatibility of our products with third-party hardware and software products.

Increasingly, our engineers are focused on enhancements to our cloud and software platforms.

Our research and development team is responsible for designing, developing and enhancing our platform and managed services, performing product and quality assurance testing and ensuring the compatibility of our products with third-party hardware and software products.

Increasingly, our engineers are focused on enhancements to our cloud and software platform components.

Our teams of engineers currently remain concentrated in San Jose and Petaluma, California;

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We also outsource a portion of our software and cloud development to domestic and international third parties, and we depend on these partners to meet our development plans.

In particular, certain of our research and development efforts may be extended by co-development partnerships with third-party developers such as Infosys whereby we can utilize their substantially larger product development teams to bring cutting edge, software-based products to market while creating new revenue opportunities for both parties.

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Manufacturing and Supply Chain

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Our global supply chain management organization oversees these third parties to source and procure materials, manufacture and deliver our products.

Our global supply chain management organization consists of planning, sourcing, logistics, test and manufacturing engineers and new product introduction personnel.

Our global supply chain management organization consists of order management, planning, sourcing, logistics, test and manufacturing engineers and new product introduction personnel.

We tightly integrate our supply chain management and new product introduction activities with the activities outsourced to these third parties.

We believe that our relationships with and our reliance on third parties allow us to improve new product introduction time, conserve working capital, reduce product costs and minimize delivery lead times while maintaining high product quality as well as the ability to scale quickly to handle increased order volume.

Over the past three years, we have reorganized our global supply chain to better align with our platform strategy as well as to reduce the impact from the imposition by the U.S.

government of tariffs on goods imported from China.

Such changes include the transition of manufacturing previously conducted in China to different manufacturing partners outside China in Taiwan and Vietnam as well as shifting a higher proportion of hardware systems design, management of raw materials used for manufacture and transition of specific supply chain operations to our ODM partners.

Order fulfillment is performed primarily by our logistics provider located in Texas.

We continue to qualify and utilize other vendors for various portions of our supply chain from time to time.

As a result of the current semiconductor and other component shortages, global restrictions and uncertainty related to the COVID-19 pandemic, we have experienced product supply delays as we and our supply chain partners experience longer lead times and shortages of components and materials.

We believe the impact of these shortages along with the COVID-19 pandemic and government responses to the pandemic will continue to impact the ability of our third-party manufacturers to supply products to us at the cost and in the time frames and volumes required by us.

We also continue to face challenges in managing global logistics and transport services for our products.

We believe the impact of these shortages will continue to impact the ability of our third-party manufacturers to supply products to us at the cost and in the time frames and volumes required by us.

Although global logistics and transport services have begun to improve, we continue to monitor potential challenges in managing these areas to ensure consistent delivery to our customers.

Fluctuations in our revenue occur due to many factors, including the varying budget cycles and seasonal buying patterns of our customers.

More specifically, our customers tend to spend less in the first fiscal quarter as they are finalizing their annual capital spending budgets, and in certain regions, customers are also challenged by winter weather conditions that inhibit outside fiber deployment.

Over the last couple of years, as our revenue from our large customers decreased, we have seen a reduction in year-end budgetary spending.

In recent years, as our revenue from our large customers decreased, we have experienced less year-end volatility due to capital budgetary spending or freezing.

This combined with an increase in recurring revenue has resulted in smaller seasonal fluctuations, and we expect this trend to continue.

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ADTRAN, Inc.;

Casa Systems, Inc.;

Ciena Corporation;

Cisco Systems, Inc.;

CommScope Inc.;

eero (an Amazon company);

eero/Ring (Amazon companies);

Huawei Technologies Co., Ltd.;

Juniper Networks, Inc.;

Nest (a Google company);

Google Nest (a Google company);

Nokia Corporation;

Plume Design, Inc.

Nokia Corporation and ZTE Corporation.

and Ubiquiti Inc.

In various geographic or vertical markets, there are also several smaller companies with which we compete.

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Intellectual Property

We rely on a combination of IP rights, including patents, trade secrets, copyrights and trademarks as well as customary contractual protections.

We rely on a combination of intellectual property, or IP, rights, including patents, trade secrets, copyrights and trademarks as well as customary contractual protections.

These rights and protections are accomplished through a combination of internal and external controls, including contractual protections with employees, contractors, customers and partners, and through a combination of U.S.

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As of December 31, 2022, we held 110 U.S.

patents and had two pending U.S.

patents and have seven pending U.S.

patent applications.

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patents generally have a term of twenty years from filing.

The remaining terms on our individual patents vary from less than a year to 17 years.

The remaining terms on our individual patents vary from less than a year to seventeen years.

patent, copyright and trade secret laws afford us only limited protection, and the laws of some foreign countries do not protect proprietary rights to the same extent.

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We believe that the frequency of assertions of patent infringement has and continues to increase in our industry.

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Human Capital

We employed 954 employees globally as of December 31, 2021, with 74% employees located in the United States and 24% primarily in Canada, China and India.

Except for one employee located in France and subject to customarily local collective bargaining arrangements, we do not have any employees represented by a labor union with respect to their employment with us.

We employed 1,426 employees globally as of December 31, 2022 with 930 employees located in the United States and 496 outside of the United States, primarily in Canada, China and India.

Except for one employee located in France and subject to customary local collective bargaining arrangements, we do not have any employees represented by a labor union with respect to their employment with us.

We have not experienced any work stoppages and consider our relations with our employees to be good.

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As such, we invest significant management attention, time and resources to attract, engage, develop and retain our talent.

Our talent strategy focuses on our culture and core values, our talent programs and the overall wellbeing and safety of our talent.

Our talent strategy focuses on our culture and core values, our talent programs and the overall well-being and safety of our talent.

Our culture and core values.

We believe that by nurturing a robust culture based on our core values we are able to attract, hire and retain a highly engaged team.

We believe that by nurturing a robust culture based on our core values we can attract, hire and retain a highly skilled and engaged team.

Our cultural pillars – to collaborate, create and communicate – reflect the way we lead and work with one another internally as well as externally with our customers, partners, suppliers and other stakeholders.

We seek to embed our core values to act responsibly and with integrity, to instill a sense of individual role and purpose at Calix, to communicate openly and honestly and to “take care of our own” in how we lead and conduct our business.

We seek to embed our core values to act responsibly and with integrity, to instill a sense of individual roles and purpose at Calix, to communicate openly and honestly and to “take care of our own” in how we lead and conduct our business.

Our culture of collaboration creates an inclusive working environment and inclusive engagement with our stakeholders;

our culture to create encourages innovation from a diversity of experiences, backgrounds and characteristics;

our culture to create encourages innovation from diverse experiences, backgrounds and characteristics;

and our culture to communicate encourages open and honest discussion.

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Although we do have facilities for our employees, we embrace a “work from anywhere” environment which allows us to hire top talent regardless of their physical location.

Our compensation and rewards programs are designed to foster an energized, engaged, motivated and high-performing workforce.

Our total rewards programs are designed to foster an energized, engaged, motivated and high-performing workforce.

We hire and compensate our talent based on their role, experiences, contributions and performance, regardless of their gender, race or ethnic background or other personal characteristics.

For example, our current programs include cash incentive bonuses designed to reward corporate and individual performance and cash bonus opportunities for internal promotions to leadership roles.

In addition to performance stock option grants for senior executives, we offer two employee stock purchase plans, because we believe stock ownership rewards employees for corporate performance aligned to our stockholders’ interests.

For example, our current programs include cash incentive bonuses designed to reward corporate and individual performance and cash bonus opportunities for internal promotions to senior leadership roles.

We offer performance stock option grants for senior executives, and because we believe stock ownership rewards employees for corporate performance aligned to our stockholders’ interests, we offer two separate employee stock purchase plans.

Our programs are regularly reviewed and adjusted based on benchmarks against competitive industry programs.

We encourage open communications with our teams and conduct both internal and third-party run surveys to improve how we engage with and support our talent.

We encourage open communication with our teams and reference third-party administered surveys to improve how we engage with and support our talent.

We also believe that continuous learning is core to ensuring our on-going success and have invested in multiple on-demand learning platforms and other knowledge resources and tools that are available to all employees globally.

Our wellness, safety and health programs.

A centerpiece of our culture is “taking care of our own,” which means we foster a collaborative and supportive environment so that every member of our team has the opportunity to thrive.

A centerpiece of our culture is “taking care of our own,” which means we foster a collaborative and supportive environment so that every member of our team can thrive.

This mindset starts with our CEO and is embedded in how we lead as well as in our wellness, safety and health programs.

Our programs seek to support wellbeing broadly, with comprehensive health benefit offerings, a 401(k) plan for retirement savings available upon hire and with employer match in the U.S.

and pension programs for most of our non-U.S.

locations, sick leave days and leave programs, unlimited time off, disability benefits and reimbursements under our wellness fund and remote office program.

Throughout the COVID-19 pandemic, our approach has been a combination of education and actions designed with the goal of ensuring we have a very safe work environment for all our employees globally.

We increased support and attention for our team in Nanjing, China, closely monitoring wellbeing and providing flexibility and tools to enable business continuity, while keeping our team safe.

We initiated CEO-led sessions in an open forum with all employees addressing the impact of the pandemic and our response to support our workforce and business.

We host a communications hub to provide and to enable our teams to share, resources and information such as public health and safety updates, resources for self-care, managing education and school-related challenges and leading remote teams, as well as interesting articles related to the pandemic.

We implemented work and safety protocols, including a COVID-19 vaccine mandate, that put the health and safety of our team first and transitioned our remote work program to apply to all employees in the U.S.

We also reconfigured our offices and adjusted our office and health screening protocols to create a safe place to conduct essential tasks.

We supplemented our wellness fund to cover broader health and wellness services, including in-home programs and child/family care, and expanded our home office program with ergonomic furniture, collaboration tools, virtual learning resources and telecommunications services to enable our teams.

Our programs seek to support wellbeing broadly, with comprehensive physical and mental health and financial benefit offerings, that include various time off programs as well as reimbursement benefits and a remote office program.

Corporate Information

Ta ble of Contents

Our principal executive offices are located at:

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Item 1. Business