Calix and its strategic manufacturing solutions
provider, Jabil, join with government leaders, including US
Assistant Secretary of Commerce Alan Davidson and Michigan
Lieutenant Governor Garlin Gilchrist, to unveil the details of its
strategy to meet Build America, Buy America (BABA) requirements by
manufacturing critical broadband hardware systems from the unique
US-built Calix software and cloud platform at Jabil’s facility in
Auburn Hills, Michigan
Calix, Inc. (NYSE: CALX) today affirmed its commitment to “Build
America, Buy America” (BABA) for the Broadband Equity, Access, and
Deployment (BEAD) program during a special event held at a
manufacturing facility in Auburn Hills, Michigan, operated by Jabil
Inc (NYSE: JBL). This commitment includes expanding a manufacturing
services agreement with Jabil at its Michigan facility. Calix was
joined by government leaders United States Assistant Secretary of
Commerce Alan Davidson and Michigan Lieutenant Governor Garlin
Gilchrist.
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Director of the Office of Minority
Broadband Initiatives at NTIA, Dr. Jon Gant; Calix Chairman Carl
Russo; Lt. Governor Garlin Gilchrist; US Assistant Secretary of
Commerce for Communications and Information and NTIA Administrator
Alan Davidson; Jabil Executive Vice President of Operations Gerald
“JJ” Creadon; President and CEO of Midwest Energy and
Communications, Robert Hance at the Jabil manufacturing facility in
Auburn Hills, MI. c/o Jabil
Calix was founded in the United States (US) 24 years ago with an
exclusive focus on enabling rural broadband service providers
(BSPs). Over the past 12 years, Calix has invested $1.2 billion to
build the only end-to-end software and cloud broadband platform,
further establishing the company as the leading technology partner
to rural BSPs across the US. Calix has more than 1,300 active US
customers and nearly 100 percent serve rural markets, where they
are leading the way to close the digital divide. The decision to
move manufacturing to the US will ensure that Calix customers can
leverage the BEAD program to meet this objective—and it will create
new, high-value manufacturing jobs nationwide by building on
decades of US-led innovation across Calix Cloud®, software, and
systems.
“We founded Calix 24 years ago in the US by focusing on and
partnering with US rural broadband providers as they innovated to
close the digital divide,” said Calix Chairman Carl Russo.
“Cooperatives, tribal and community-owned, family and community
run, and private equity-backed local broadband providers are the
lifeblood of rural America, and we appreciate the opportunity to
partner with federal and state leaders on broadband programs that
help them expand the great work that they do every day. In doing
so, they have created tremendous value for underserved communities
across the US as our America-led software and cloud innovation in
broadband has enabled even the smallest BSP to thrive and provide
the essential broadband services that enable economic growth,
education, health, and safety. Calix, our customers, and our
partners are tremendously thankful to the National
Telecommunications and Information Administration (NTIA) and the
Commerce Department for their leadership in ensuring that we can
deliver world-class broadband and life-enhancing managed services
to every citizen and local business. More importantly, they are
doing it through a program that will help us meet this objective
through Calix America-led software and cloud innovation while
contributing to America’s manufacturing renaissance.”
With an initial investment from Calix of $4 million to $6
million and an ongoing spend for operations of $10 million to $15
million per year, Calix manufacturing solutions providers will hire
workers in manufacturing, operations, engineering, quality
assurance, and administrative roles as they ramp US production of
Calix optical solutions—a first step in the company’s BABA
initiative. The ongoing collaboration with these manufacturers will
create more than 100 American jobs, with additional jobs planned as
Calix customers participate in the BEAD program over the next five
to 10 years.
“President Biden’s Investing in America agenda and commitment to
‘Made in America’ is driving a resurgence in manufacturing across
the country,” said US Secretary of Commerce Gina Raimondo. “Today’s
announcement is more evidence that we can close the digital divide
and connect everyone in America to high-speed internet networks
built by American workers with American-made equipment.”
“The ‘Internet for All’ initiative is not just a connectivity
program; it’s a jobs program—for the people who build the networks
and for the people who make the equipment those networks need,”
said US Assistant Secretary of Commerce for Communications and
Information and NTIA Administrator Alan Davidson. “If network
equipment can be made in America, it should be made in America.
Companies like Calix are stepping up and answering that call.”
Today, Calix employs over 1,000 professionals in the US who
design, develop, market, sell, and service its end-to-end broadband
platform and managed services. Calix will add to its US operations
by expanding its hardware manufacturing relationships.
Specifically, Calix has longstanding partnerships with three
manufacturing solutions providers: a five-year partnership with
Jabil, an eight-year partnership with Gemtek, and a 10-year
partnership with Hisense Broadband. The manufacturing services
agreements between Calix and these providers reflect the
following:
- Jabil will produce optical network terminals (ONTs) and optical
line terminals (OLTs) in Michigan
- Gemtek will produce ONTs at its California facility
- Hisense Broadband will produce optical modules at its New
Jersey facility
“Jabil is excited to join Calix in supporting the BEAD program
while bridging the digital divide to bring critical broadband
access to those who need it most,” said Jabil Executive Vice
President of Operations Gerald “JJ” Creadon. “As a global
manufacturing solutions provider, we have a presence in 30
countries and more than 100 facilities, yet Jabil was founded less
than 30 miles from this state-of-the-art factory in Auburn Hills.
We are extremely proud to ramp production of Calix’s
industry-leading platforms here in Michigan, incorporating the
latest automation and process technologies to accelerate the
delivery of Calix’s industry-leading broadband-access
equipment.”
Creadon joined leaders of the NTIA at the event, along with many
Calix customers, including Robert Hance, President and CEO of
Midwest Energy and Communications (MEC) in Cassopolis,
Michigan.
“Midwest Energy and Communications has been committed to serving
rural communities in Michigan, Indiana, and Ohio for nearly a
century,” said Hance. “From our founding as an electric cooperative
in the 1930s, our mission has never changed: bringing essential
services where no one else would meet the needs of the communities.
That’s why we added fiber broadband services to our offerings eight
years ago. This has resulted in tremendous investment into our
region while enabling children, parents, and communities to thrive.
Calix has always been an essential partner to MEC, enabling rural
service providers like us to innovate through their software and
cloud platform and systems at the fastest pace in the industry. We
are thrilled that Calix is partnering with the NTIA to take the
critical step to bring hardware manufacturing to the US while
continuing their leadership as an American innovator. Thanks to
this commitment, we are confident that we can lead the way in
delivering new services that are essential to our communities.”
Calix will continue to partner with the NTIA, leading broadband
associations, and state broadband offices to ensure that Calix
products and solutions can be leveraged by customers across federal
and state broadband programs such as BEAD. Once the NTIA issues
final guidance on BABA, Calix will share additional details of its
programs with industry associations and customers.
Learn more about the resources Calix makes available to
customers related to broadband funding.
About Calix
Calix, Inc. (NYSE: CALX)—Broadband service providers of
all sizes leverage the Calix platform and teams to simplify their
business and excite their subscribers to grow the value of their
business and for their communities for generations. The
democratizing power of the platform and portfolio of managed
services enables them to operate efficiently, acquire subscribers,
and deliver exceptional experiences. Calix is dedicated to driving
continuous improvement in partnership with our growing ecosystem to
support the transformation of our customers and their
communities.
This press release contains forward-looking statements that are
based upon management’s current expectations and are inherently
uncertain. Forward-looking statements are based upon information
available to us as of the date of this release, and we assume no
obligation to revise or update any such forward-looking statement
to reflect any event or circumstance after the date of this
release, except as required by law. Actual results and the timing
of events could differ materially from current expectations based
on risks and uncertainties affecting Calix’s business. The reader
is cautioned not to rely on the forward-looking statements
contained in this press release. Additional information on
potential factors that could affect Calix’s results and other risks
and uncertainties are detailed in its quarterly reports on Form
10-Q and Annual Report on Form 10-K filed with the SEC and
available at www.sec.gov.
Calix and the Calix logo are trademarks or registered trademarks
of Calix and/or its affiliates in the US and other countries. A
listing of Calix’s trademarks can be found at
https://www.calix.com/pages/trademarks.html. Third-party trademarks
mentioned are the property of their respective owners.
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Press Inquiries: Alison Crisci 919-353-4323
alison.crisci@calix.com
Investor Inquiries: Jim Fanucchi
investorrelations@calix.com
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