May 3, 2016 1 This presentation includes forward-looking statements - - PowerPoint PPT Presentation

May 3, 2016

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Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

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 development of new products and product features; our anticipated growth and growth drivers; our future financial condition and results of operations; our future business, operational and financial performance; 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

• ur 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, Calix, Inc. undertakes no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

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Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website ($ in millions, except per share amounts)

Actual Guidance

Revenues

$98.4 $95.0-$99.0

Non-GAAP gross margin

48.1% 47%-48%

Non-GAAP operating expenses

$51.7* $52.0-$53.0**

Non-GAAP EPS – excluding Occam litigation

($0.02) ($0.10) – ($0.06)

Non-GAAP EPS – including Occam litigation

($0.09) ($0.15) – ($0.11)

Cash flow from operations

$5.3 Negative

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* Included approximately $3.4M of Occam litigation-related expenses ** Included approximately $2.6M of Occam litigation-related expenses

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

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$75.0 $80.0 $85.0 $90.0 $95.0 $100.0 $105.0 $110.0 $115.0

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

REVENUES IN $M ($0.15) ($0.10) ($0.05) $0.00 $0.05 $0.10 $0.15 $0.20

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

NON-GAAP EPS

Revenues +8% y/y

• 2 > 10%

customers

• Growth across

customers, platforms and geographies

Gross margins of 48.1%

• Favorable product

and customer mix,

• ffset by full

quarter contribution from turnkey network improvement program

Revenues within guidance

• Growth across

customers, platforms and geographies

EPS above guidance

• Better

performance on gross margin and

• perating

expenses contained

$0.5M $20.5M $40.5M $60.5M $80.5M $100.5M $120.5M 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Domestic Revenues International Revenues 45.9% 47.7% 44.8% 48.1% 49.2% 51.0% 49.3% 46.5% 48.1% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Gross Margin (%)

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

5 $75.5M $79.3M $88.1M $112.0M $97.8M $99.5M $93.9M $73.6M $64.3M

$0.0M $20.0M $40.0M $60.0M $80.0M $100.0M $120.0M 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Cash of $64.3M

• Operating cash

flow generation of $3.2M

• No debt and

untapped $50M line of credit expiring September 2018

Buyback activity complete

Program completed. Repurchased 5.3M shares at an average cost

• f $7.50 per

share

0.4 1.0 2.1 1.8 5.3 $3.4 $7.7 $16.1 $12.8 $40.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Total Buyback

Shares (M) Repurchased $M Repurchased

Operating cash flow rebounds

• Improved cash

cycle

• Strong collection

culture

Cash conversion cycle improvement

• Inventory velocity

improves by 10 days

• Linearity and key

focus on working capital

• $5.2M

$4.7M $15.1M

• $2.5M
• $11.9M

$5.0M $5.1M

• $4.5M

$5.3M

• $15.0M
• $10.0M
• $5.0M

$0.0M $5.0M $10.0M $15.0M $20.0M 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

132 Days 115 Days 101 Days 91 Days 113 Days 108 Days 90 Days 104 Days 107 Days

0 Days 20 Days 40 Days 60 Days 80 Days 100 Days 120 Days 140 Days 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

Revenues $104-$108M Gross margin 46.0-47.0% Operating expenses– excluding litigation $49.6-$50.6M* Operating expenses $52.0-$53.0M* Non-GAAP EPS– excluding litigation ($0.04) – $0.00* Non-GAAP EPS ($0.09) – ($0.05)* Cash flow from operations Negative

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*Does not take into account $4.5M (or $0.09) litigation settlement proceeds likely to be realized in Q2 or Q3 2016

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

Predictable, profitable long-term growth Reaccelerated top-line growth rate Increased leverage from Operating Expense investments Accelerated rate of change across industry Demand drivers remain intact

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Q&A

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Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

• Additional information available at http://investor-relations.calix.com/
• Stock Information
• Financial Information
• Events & Presentations
• Corporate Governance
• Interactive Financials
• Investor Resources

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Appendix

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Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

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*Q2 2016E based on estimated litigation expense provided in Guidance for 2Q16 ** Based on litigation expense reimbursement with estimated timing of settlement acceptance to be determined

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016E* Q2/Q3 2016E** Occam Litigation Expense ($M)

($1.7M) ($0.1M) ($0.6M) ($0.8M) ($3.4M) ($2.4M) $4.5M

Per share impact

($0.03) ($0.00) ($0.01) ($0.02) ($0.07) ($0.05) $0.09

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

Q1 2016 Reconciliation

(Unaudited in thousands, except earnings per share data)

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Non-GAAP Stock-Based Compensation Amortization of Intangible Assets Acquisition- Related Costs GAAP Revenue $ 98,375 $ — $ — $ — $ 98,375 Cost of revenue 51,103 127 1,663 — 52,893 Gross profit 47,272 (127) (1,663) — 45,482 Gross margin 48.1 % (0.1 )% (1.7 )% — % 46.2 % Operating expenses 51,650 2,594 1,701 275 56,220 Operating loss (4,378) (2,721) (3,364) (275) (10,738) Interest and other income (expense), net 130 — — — 130 Loss before provision for income taxes (4,248) (2,721) (3,364) (275) (10,608) Provision for income taxes 121 — — — 121 Net loss $ (4,369) $ (2,721) $ (3,364) $ (275) $ (10,729) Weighted average number of shares used to compute net loss per common share: Basic and diluted 48,591 48,591 48,591 48,591 48,591 Net loss per common share: Basic and diluted $ (0.09) $ (0.06) $ (0.07) $ (0.01) $ (0.22)

Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

Q4 2015 Reconciliation

(Unaudited in thousands, except earnings per share data)

Non-GAAP Stock-Based Compensation Amortization of Intangible Assets Acquisition- Related Costs GAAP Revenue $ 104,999 $ — $ — $ — $ 104,999 Cost of revenue 56,213 160 2,089 — 58,462 Gross profit 48,786 (160) (2,089) — 46,537 Gross margin 46.5 % (0.2) % (2.0) % — % 44.3 % Operating expenses 50,644 3,052 2,552 24 56,272 Operating loss (1,858) (3,212) (4,641) (24) (9,735) Interest and other income (expense), net 346 — — — 346 Loss before provision for income taxes (1,512) (3,212) (4,641) (24) (9,389) Provision for income taxes 157 — — — 157 Net loss $ (1,669) $ (3,212) $ (4,641) $ (24) $ (9,546) Weighted average diluted shares used to compute net loss per common share 50,578 50,578 50,578 50,578 50,578 Net loss per diluted share $ (0.03) $ (0.06) $ (0.09) $ — $ (0.19)

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Please refer to the reconciliation of GAAP to non-GAAP financial measures in the appendix and on the Investor Relations section of our website

Q1 2015 Reconciliation

(Unaudited in thousands, except earnings per share data)

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Non-GAAP Stock-Based Compensation Amortization of Intangible Assets Acquisition- Related Costs GAAP Revenue $ 91,038 $ — $ — $ — $ 91,038 Cost of revenue 46,285 175 2,088 — 48,548 Gross profit 44,753 (175) (2,088) — 42,490 Gross margin 49.2 % (0.2 )% (2.3 )% — % 46.7 % Operating expenses 48,148 3,487 2,552 190 54,377 Operating loss (3,395) (3,662) (4,640) (190) (11,887) Interest and other income (expense), net 48 — — — 48 Loss before taxes (3,347) (3,662) (4,640) (190) (11,839) Provision for income taxes 91 — — — 91 Net loss $ (3,438) $ (3,662) $ (4,640) $ (190) $ (11,930) Weighted average shares used to compute net loss per common share: Basic and diluted 51,732 51,732 51,732 51,732 51,732 Net loss per common share: Basic and diluted $ (0.07) $ (0.07) $ (0.09) $ — $ (0.23)

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