DALLAS and IRVINE, Calif., Oct. 16, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a global leader of Networking, Connectivity and Cloud Edge software solutions and AXON Networks (AXON), a global leader of advanced Service Management and Orchestration solutions, today announced the acquisition of DZS' Service Assurance and WiFi Management software portfolio by AXON Networks. The all-cash, $34 million transaction transfers all CloudCheck, Expresse and TruSpeed assets and IP patents to AXON, along with a highly sk ...

DALLAS, Sept. 13, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Networking and Connectivity solutions enabling broadband everywhere, today announced that Chief Financial Officer (CFO) Misty Kawecki will step down at the end of September following the successful completion of the company's financial restatement. "The Board of Directors and I appreciate Misty guiding us through the completion of our restatement process," said Charlie Vogt, President and CEO, DZS. "With the restatement now behind us ...

Financial Data and Key Metrics Changes - The company has restated its financial results, with $17 million of revenue previously recorded in 2022 deferred and not recognized [9] - Revenue for the first half of 2024 was $58.7 million, a decline of 21% year-over-year from $74.9 million in the first half of 2023 [11] - Adjusted gross margin from continuing operations improved to 39.8% in the first half of 2024 from 38.1% in the same period of 2023 [12] Business Line Data and Key Metrics Changes - The divestiture of the ASSIA business in April 2024 represented approximately 50% of the consolidated business, impacting results from continuing operations starting Q1 2024 [10] - Software revenue as a percentage of revenue from continuing operations increased to 17% in the first half of 2024 from 14% in the same period of the prior year [11] Market Data and Key Metrics Changes - Industry revenue associated with shipments of access equipment declined over 25% in 2023 compared to 2022 due to a spending pause by telecom service providers [10] - The company experienced a significant increase in inventory in the second half of 2023, leading to a $25 million charge for excess inventory [10] Company Strategy and Development Direction - The focus for the second half of 2024 and full year 2025 will be on achieving synergies from the NetComm acquisition, drawing down inventory levels, and converting inventory to cash [14] - The acquisition of NetComm is seen as strategic, expected to be accretive and add significant scale and new revenues to the company's connectivity products [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the broadband market, anticipating double-digit growth in orders and revenue in the second half of 2024 [20] - The company aims to be relisted on NASDAQ, with a focus on delivering for customers and generating positive cash flow during the second half of 2024 [16] Other Important Information - The company has approximately $128 million of working capital on the balance sheet as of June 30, 2024, with $75 million of paid inventory [13] - The company has invested approximately $130 million in advancing its broadband access, optical connectivity, and cloud software portfolios over the past few years [19] Q&A Session Summary Question: Insights on fiber opportunities in Europe and the Americas - Management noted that while the Americas business is down, there is optimism about the fiber opportunities in Europe, with expectations for trials to convert in the second half of the year [29][30] Question: Update on the Middle Mile opportunity with Saber - Management highlighted the market opportunity for the Saber-4400, which addresses bottlenecks at the access edge and is now past the initial deployment phase with satisfied customers [33][34] Question: Guidance for the second half and organic growth expectations - Management indicated a cautious approach to guidance, with expectations for breakeven by the end of 2024, driven by the inclusion of NetComm and organic growth [36][38] Question: Update on U.S. rural fiber market opportunities - Management reported progress in the BEAD process and emphasized the importance of product certification for accessing funding, with meaningful dollars expected to flow in the second half of next year [39][40]

Financial Performance - Q2 2024 orders reached $38 million, a 6% increase from $36 million in Q2 2023, while 1H 2024 orders totaled $67 million, down 7% from $72 million in 1H 2023[3] - Revenue for Q2 2024 was $31 million, unchanged from Q2 2023, and 1H 2024 revenue was $59 million, a decrease of 21% from $75 million in 1H 2023[3] - Net income for Q2 2024 was $23 million GAAP, with an adjusted non-GAAP loss of $(11) million, compared to a loss of $(13) million in Q2 2023[3] - Net revenue for Q2 2024 was $31,066,000, an increase of 12.9% from $27,667,000 in Q1 2024 but a decrease of 1.8% from $30,623,000 in Q2 2023[14] - Operating loss for Q2 2024 was $(17,166,000), worsening from $(10,892,000) in Q1 2024 and $(21,072,000) in Q2 2023[14] - Net income for Q2 2024 was $23,073,000, a significant improvement from a net loss of $(13,535,000) in Q1 2024 and $(22,604,000) in Q2 2023[14] - Earnings per diluted share for Q2 2024 was $0.61, compared to a loss of $(0.36) in Q1 2024 and $(0.72) in Q2 2023[14] Margins and Expenses - GAAP gross margin improved to 33.6% in Q2 2024 from 32.7% in Q2 2023, and 39.2% in 1H 2024 compared to 36.3% in 1H 2023[3] - Non-GAAP operating expenses decreased by 27% to $35 million in 1H 2024 from $48 million in 1H 2023[3] - Gross profit for Q2 2024 was $10,439,000, resulting in a gross margin of 33.6%, compared to a gross margin of 32.7% in Q2 2023[18] - The gross profit margin slightly improved from 36.3% to 38.1% when adjusted for non-GAAP items[21] Assets and Liabilities - Total current assets decreased to $137,951,000 as of June 30, 2024, down from $196,368,000 at the end of 2023[15] - Total liabilities decreased to $128,812,000 as of June 30, 2024, down from $226,822,000 at the end of 2023[15] - Cash and cash equivalents decreased to $8,137,000 from $15,102,000 at the end of 2023[15] - Inventories increased significantly to $80,149,000 from $33,113,000 at the end of 2023[15] Strategic Initiatives - The divestiture of the Asia business is expected to enhance gross margins and allow a focus on North America, Europe, and other regions[2] - The acquisition of NetComm in June 2024 is anticipated to be accretive and is already generating positive cross-selling sales synergy[2] - The company aims to convert approximately $150 million of scheduled backlog into orders and cash[4] - DZS will provide a comprehensive report on its accomplishments and future outlook during the earnings call on September 5, 2024[4] Other Financial Adjustments - The company reported a bargain purchase gain of $41,544,000 in Q2 2024, contributing to the positive net income[14] - GAAP revenue was $47,805 million with a gross profit of $27,185 million, resulting in a gross margin of 36.3%[21] - Operating expenses totaled $65,695 million, leading to an operating loss of $38,510 million and a net loss of $42,639 million[21] - Adjusted (Non-GAAP) revenue was $46,435 million with an adjusted gross profit of $28,555 million, achieving a gross margin of 38.1%[21] - The company reported a net loss per diluted share of $1.37 under GAAP and $(0.53) under Non-GAAP adjustments[21] - The company incurred litigation and restatement costs of $476 million, impacting overall financial performance[21] - Unrealized foreign exchange losses amounted to $189 million, affecting the net income figures[21] - Non-GAAP adjustments to the tax rate contributed $10,678 million, with a tax effect of $(3,415) million[21] - The company is focusing on cost management strategies to mitigate operating losses and improve future profitability[21]

DALLAS, Sept. 03, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Networking and Connectivity solutions enabling broadband everywhere, today announced it has filed Q2 2024 financial results. "The second quarter of 2024 represented a defining period for DZS," said Charlie Vogt, President and CEO, DZS. "Foremost, we are now current with all restated and delayed Form 10-Q and 10-K filings with the SEC through Q2 2024. From a sales and financial performance perspective, we continue to make progress wit ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $0.001 par value DZSI The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPO ...

DALLAS, Texas, Aug. 27, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Network Edge, Connectivity and Cloud Software solutions enabling gigabit broadband everywhere, today announced that it will host an earnings call to discuss its financial results for all of 2022, 2023, and for the first and second quarters of 2024. Conference Call Details: Date: Thursday, September 5, 2024 Time: 11:00 a.m. EDT Participant Toll-Free: (800) 715-9871 Conference ID: 3713874 Webcast: https://edge.media-server.com/mm ...

DALLAS, Aug. 20, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Network Edge, Connectivity and Cloud Software solutions enabling gigabit broadband everywhere, today announced that it has filed its Q1 2024 financial results. "As previously disclosed, we completed the restatements with respect to 2022 and the first quarter of 2023, as well as the reports for the remaining periods in 2023 and now completed the delayed filing for Q1 2024," said Charlie Vogt, President and CEO, DZS. "Our priority throu ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, $0.001 par value DZSI The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR o TRANSITION REP ...

DALLAS, Aug. 13, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Network Edge, Connectivity and Cloud Software solutions enabling gigabit broadband everywhere, today announced that it has filed with the SEC its restated financial results for the periods from the first quarter of 2022 through the first quarter of 2023 as well as its remaining periods in 2023. DZS is now current with its Form 10-Q and 10-K filings with the SEC through 2023. "We took an extremely thorough approach to the restatement p ...