Needham lowered the firm's price target on Calix to $62 from $70 but keeps a Buy rating on the shares. The company delivered solid Q1 results at the high end of its guide but guided Q2 inline vs. consensus as higher memory costs are passed through to customers, impacting gross margins, the analyst tells investors in a research note. Needham adds, however, that the Calix One platform is fully completed exiting Q1, and the management is confident in a return to strong double-digit software bookings by Q3.
