Two Petaluma telecom companies announced record third-quarter revenues Tuesday, reaching new milestones as they develop markets for their technology.
Calix, the telecom equipment developer, announced third-quarter revenues of $103.6 million, up 27 percent from a year ago.
"It was another very solid quarter for us, with revenues over $100 million for the first time," Michael Ashby, executive vice president and chief financial officer for Calix, told investors in a conference call.
The company, which employs 730 employees mostly in Sonoma County, achieved profitability for the first time using Generally Accepted Accounting Principles (GAAP), he said.
Profits for the third quarter at Calix were $10.2 million using non-GAAP accounting, up from $1.8 million during the same quarter last year.
"We have shown strong improvement in each of the quarters of this year," Ashby said.
Calix shares rose about 6 percent to $12.50 on Tuesday, but fell slightly in after-hours trading.
The company expects slower growth in the fourth quarter, because many customers have spent the funds in their budgets, said Carl Russo, CEO of Calix.
"However, the level of excitement for 2014 is exactly the opposite," Russo said.
Calix plans on increasing employee bonuses in the fourth quarter, Ashby said.
"That is something we'll attempt to continue to maintain in 2014," he added.
Networking equipment maker Cyan, Inc., also reported record revenues, which grew to $37.7 million, up 31 percent from last year. But the company posted a net loss of $8.6 million, or 19 cents per share.
"The telecom space is historically lumpy," Mark Floyd, chairman and CEO of Cyan, said in a conference call. "This can be particularly true towards the end of the year, as capital budgets are largely exhausted."
Cyan expects lower revenues and bigger losses in the fourth quarter.
The economic uncertainty driven by the debt ceiling crisis and lack of a federal budget are exacerbating the situation, Floyd said.
Cyan shares rose about 5 percent Tuesday to $7.86 but fell a steep 14 percent in after-hours trading.
Key events for Keysight
1939: Bill Hewlett and David Packard form Hewlett-Packard, selling an early product, an audio oscillator, to Walt Disney Studios.
1972: HP begins manufacturing at an interim plant in Santa Rosa.
1975: With 6,000 guests in attendance, HP opens its hillside campus on Fountaingrove Parkway. The site eventually will expand to 1 million square feet of office, research and manufacturing space.
1982: HP begins construction on the first of four buildings at its Rohnert Park campus.
1999: The Sonoma County operations become part of Agilent Technologies, a new test and measurement company split off from HP.
2001: Agilent’s employment peaks at more than 5,000 workers in the county.
2004: Battered by the dot.com bust and intense competition, Agilent shutters the Rohnert Park plant and transfers manufacturing overseas. Local employment drops to 2,300.
2013: Agilent announces plans to split the company and form a stand-alone electronic measurement business named Keysight Technologies.
Nov. 1: Keysight begins operation as its own company with about 1,250 employees in Santa Rosa and 9,500 worldwide.