Calix, Inc

Greetings and welcome to the CALEX first quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tom Dingus, Director of Investor Relations. Thank you, sir. You may begin.

Thank you, operator, and good morning, everyone. Thank you for joining our first quarter 2020 earnings conference call. Today on the call, we have President and CEO Carl Russo, as well as Chief Financial Officer Corey Sindelar. As a reminder, yesterday after the close of market, we released our letter to stockholders in an 8K filing, as well as on the investor relations section of the Calix website. This conference call will be available for audio replay in the investor relations section of the Calix website. Before we continue, we want to remind you that in this call, we refer to forward-looking statements, which include all statements we make about our future financial and operating performance, growth strategy and market outlook, and actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause actual results and trends to differ materially are set forth in our first quarter 2020 letter to stockholders and in our annual and quarterly reports filed with the SEC. Galaxy assumes no obligation to update any forward-looking statements, which speak only as of their respective dates. Also on this conference call, we will discuss both GAAP and non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is included in our letter to stockholders. Unless otherwise stated on this call, we will reference non-GAAP financial measures. With that, let me turn the call over to Carl. Carl?

Thank you, Tom. On behalf of everyone at Calix, our heart goes out to all those around the world who have been affected by, and most especially, those who have succumbed to COVID-19. While these are the most uncertain of times due to this pandemic, our mission to connect everyone and everything has become more vital than ever. Thus, while uncertainty is all around us, we believe our future success is more certain than ever and likely sooner. However, before I discuss this opportunity, I want to share with you what my thoughts were at the onset of this pandemic and how we are leading the company through these turbulent times. As the leader of and the largest shareholder in Calix, my mind immediately went to ensuring our employees were safe. So, we moved to an all virtual stance earlier in March. I am happy to say that we have had only one reported illness among our employees, and that person has fully recovered. Second, I wanted to ensure that we had room to maneuver. So we tightened our operating expenses across all fronts and created plans to tighten even further if we saw the economy getting worse. Third, I wanted to ensure that our balance sheet was sound and strong so that we could execute through these challenging times. A goal that was eased by us outperforming and generating positive cash flow from operations in the quarter. With all this behind us, we could execute, and execute we did, starting with our move to an all-virtual stance during which the team performed flawlessly. This was no surprise, as we have been building a remote and virtual culture for some years now, even being recognized by Glassdoor in a recent Forbes article as one of the best companies to work at if you are a remote worker. This set us up to deliver first quarter results that were all in range and earnings per share that was at the top of our guidance range. While supply constraints remain due to the COVID-19 outbreak in Asia, our visibility into future demand continues to grow. This is due to our customer diversification and accelerating penetration of our all platform offerings. and this increased visibility is represented in our strong guidance for the second quarter. Secular forces that are sweeping through the communication space have just been pulled forward as this pandemic has required society to take actions that are representative of a significant acceleration of behaviors that were five to 10 years in our future. We intend to seize the opportunity We also believe the opportunity to accelerate transformation exists for our customers, and we will continue to help them as we have the right platforms and the right services at this critical time. With that, let's open the call for questions. Jessie?