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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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68-0438710
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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1035 N. McDowell Blvd.
Petaluma, California
(Address of Principal Executive Offices) |
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94954
(Zip Code)
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Registrant’s telephone number, including area code (707) 766-3000
Securities registered pursuant to Section 12(b) of the Act: |
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.025 par value
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The New York Stock Exchange
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Securities registered pursuant to section 12(g) of the Act:
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None
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(Title of class)
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Large Accelerated Filer
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o
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Accelerated Filer
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x
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Non-accelerated filer
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o
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(Do not check if a smaller reporting company)
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Smaller Reporting Company
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o
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Emerging Growth Company
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o
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ITEM 15.
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Exhibits, Financial Statement Schedules
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Exhibit
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Number
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Description
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2.1
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3.1
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3.2
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4.1
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10.1*
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10.2*
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10.3
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10.4
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10.5
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Exhibit
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Number
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Description
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10.6
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10.7
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10.8*
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10.9*
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10.10†
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10.11*
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10.12*
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10.13*
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10.14*
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10.15*
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10.16*
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10.17*
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10.18*
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10.19*
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10.20*
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10.21*
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10.22*
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10.23†
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10.24
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10.25*
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10.26*
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10.27*
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10.28*
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Exhibit
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Number
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Description
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21.1
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23.1
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23.2
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24.1
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31.1
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31.2
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31.3
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31.4
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32.1
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101.INS
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XBRL Instance Document.
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101.SCH
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XBRL Taxonomy Extension Schema Document.
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document.
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document.
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document.
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document.
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*
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Indicates management contract or compensatory plan or arrangement.
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†
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Confidential treatment has been granted as to certain portions of this agreement.
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CALIX, INC.
(Registrant)
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Dated:
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May 10, 2018
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By:
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/s/ Carl Russo
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Carl Russo
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Chief Executive Officer
(Principal Executive Officer)
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Dated:
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May 10, 2018
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By:
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/s/ Cory Sindelar
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Cory Sindelar
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Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
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Fiscal Month Ending
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Adjusted Quick Ratio
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January 31, 2018
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At least 0.80:1.00
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February 28, 2018
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At least 0.85:1.00
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March 31, 2018
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At least 0.90:1.00
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April 30, 2018
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At least 0.80:1.00
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May 31, 2018
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At least 0.85:1.00
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June 30, 2018
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At least 0.90:1.00
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July 31, 2018
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At least 0.95:1.00
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August 31, 2018
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At least 0.95:1.00
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September 30, 2018
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At least 1.00:1.00
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October 31, 2018 and each month thereafter
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At least 1.10:1.00
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Financial Covenants
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Required
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Actual
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Complies
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Maintain as indicated:
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Adjusted Quick Ratio (tested monthly)
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See attached schedule
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See attached schedule
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Yes No
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Adjusted EBITDA (tested quarterly)
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See attached schedule
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See attached schedule
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Yes No
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Performance Pricing
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Interest Rate
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Applies
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AQR
>
1.50
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LIBOR + 2.00% or Prime + 0.50%
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Yes No
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AQR
>
1.25 and <1.50
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LIBOR + 2.50% or Prime + 1.00
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Yes No
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AQR < 1.25
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LIBOR + 3.00% or Prime + 1.50%
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Yes No
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Unused Line Fee
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Applies
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AQR
>
1.25
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0.25%
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Yes No
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AQR < 1.25
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0.375%
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Yes No
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Streamline Period
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Applies
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(i) AQR
>
1.10 from the Effective Date through December 31, 2017, or (ii) AQR
>
1.25 from January 1, 2018 and at all times thereafter
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Yes
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Yes No
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(i) AQR <1.10 from the Effective Date through December 31, 2017, or (ii) AQR < 1.25 from January 1, 2018 and at all times thereafter
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No
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Yes No
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CALIX, INC.
By:
Name:
Title:
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BANK USE ONLY
Received by: _____________________
AUTHORIZED SIGNER
Date: _________________________
Verified: ________________________
AUTHORIZED SIGNER
Date: _________________________
Compliance Status: Yes No
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Fiscal Month Ending
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Adjusted Quick Ratio
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January 31, 2018
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At least 0.80:1.00
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February 28, 2018
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At least 0.85:1.00
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March 31, 2018
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At least 0.90:1.00
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April 30, 2018
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At least 0.80:1.00
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May 31, 2018
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At least 0.85:1.00
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June 30, 2018
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At least 0.90:1.00
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July 31, 2018
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At least 0.95:1.00
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August 31, 2018
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At least 0.95:1.00
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September 30, 2018
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At least 1.00:1.00
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October 31, 2018 and each month thereafter
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At least 1.10:1.00
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A.
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Aggregate value of the unrestricted and unencumbered cash and Cash Equivalents of Borrower at Bank and Bank’s Affiliates, or held in accounts subject to Control Agreements as permitted under the Agreement
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$
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B.
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Aggregate value of net billed accounts receivable of Borrower
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$
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C.
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Quick Assets (the sum of lines A and B)
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$
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D.
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Aggregate value of liabilities of Borrower on its consolidated balance sheet including all Indebtedness and current portion of Subordinated Debt permitted by Bank to be paid by Borrower (but excluding (i) all other Subordinated Debt, (ii) Obligations to Bank, and (iii) any Indebtedness that is cash secured or is otherwise collateralized pursuant to terms acceptable to Bank in its sole discretion), that matures within one (1) year
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$
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E.
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Aggregate value of Obligations to Bank
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$
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F.
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The sum of lines D and E
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$
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G.
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Aggregate value of the current portion of all amounts received or invoiced by Borrower in advance of performance under contracts and not yet recognized as revenue
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$
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H.
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Line F minus line G
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$______
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I.
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Adjusted Quick Ratio (line C divided by line H)
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:1.00
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Fiscal Quarter Ending
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Adjusted EBITDA
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March 31, 2018
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($6,000,000)
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June 30, 2018
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($3,000,000)
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September 30, 2018
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$3,000,000
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December 31, 2018
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$5,000,000
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A.
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Net Income of Borrower
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$_________
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B.
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To the extent included in the determination of Net Income
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1. The provision for income taxes
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$_________
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2. Depreciation expense
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$_________
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3. Amortization expense
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$_________
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4. Interest Expense
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$_________
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C.
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EBITDA (line A plus lines B.1-B.4)
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$_________
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D.
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Non-cash stock compensation expense
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$_________
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E.
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Other non-cash items approved by Bank in writing on a case-by-case basis
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$_________
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F.
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One-time non-recurring restructuring expenses actually incurred by Borrower in the fiscal quarter ending March 31, 2018 not to exceed $3,000,000 in the aggregate
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$_________
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G.
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Adjusted EBITDA (line C plus lines D-F
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$_________
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1.
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I have reviewed this annual report on Form 10-K/A of Calix, Inc. for the year ended December 31, 2017;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: May 10, 2018
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/s/ Carl Russo
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Carl Russo
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Chief Executive Officer
(Principal Executive Officer)
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1.
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I have reviewed this annual report on Form 10-K/A of Calix, Inc. for the year ended December 31, 2017;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: May 10, 2018
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/s/ Cory Sindelar
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Cory Sindelar
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Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer) |
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