DZS Completes Restatement of 2022 and Q1 2023 Financial Results and Files Reports for Remaining Periods in 2023
DZS (OTC: DZSI), a developer of Network Edge, Connectivity and Cloud Software solutions, has completed the restatement of its financial results for 2022 and Q1 2023, and filed reports for the remaining periods in 2023. The company is now current with its SEC filings through 2023. Despite facing market challenges in 2023, DZS advanced its technology and accelerated customer trials. The restatement resulted in $17 million of revenue from 2022 being deferred, while in 2023, $200K of previously-deferred revenue was recognized. As of December 31, 2023, DZS had a cash balance of $21 million and approximately $75 million in inventory. The company is focusing on advancing its broadband portfolio, implementing AI and security, and optimizing operational costs.
DZS (OTC: DZSI), sviluppatore di soluzioni software per Network Edge, connettività e cloud, ha completato la revisione dei suoi risultati finanziari per il 2022 e il primo trimestre del 2023, e ha presentato report per i restanti periodi del 2023. La società è ora attuale con le sue dichiarazioni SEC fino al 2023. Nonostante le sfide del mercato nel 2023, DZS ha avanzato la sua tecnologia e accelerato i test con i clienti. La revisione ha comportato un differimento di $17 milioni di ricavi del 2022, mentre nel 2023 sono stati riconosciuti $200K di ricavi precedentemente differiti. Al 31 dicembre 2023, DZS disponeva di un saldo di cassa di $21 milioni e circa $75 milioni in inventario. L'azienda si sta concentrando sull'avanzamento del suo portafoglio di banda larga, sull'implementazione di AI e sicurezza, e sull'ottimizzazione dei costi operativi.
DZS (OTC: DZSI), desarrollador de soluciones de software para Network Edge, conectividad y nube, ha completado la revisión de sus resultados financieros para 2022 y el primer trimestre de 2023, y ha presentado informes para los períodos restantes en 2023. La empresa ahora está al día con sus presentaciones ante la SEC hasta 2023. A pesar de enfrentar desafíos en el mercado en 2023, DZS avanzó en su tecnología y aceleró las pruebas con clientes. La revisión resultó en $17 millones de ingresos de 2022 siendo diferidos, mientras que en 2023 se reconocieron $200K de ingresos previamente diferidos. Al 31 de diciembre de 2023, DZS tenía un saldo de efectivo de $21 millones y aproximadamente $75 millones en inventario. La compañía se está enfocando en avanzar su portafolio de banda ancha, implementar inteligencia artificial y seguridad, y optimizar costos operativos.
DZS (OTC: DZSI)는 Network Edge, 연결성 및 클라우드 소프트웨어 솔루션 개발업체로서, 2022년 및 2023년 1분기 재무 결과를 수정완료하였고, 2023년 남은 기간에 대한 보고서를 제출하였습니다. 이 회사는 이제 2023년까지 SEC 제출서류가 모두 완료된 상태입니다. 2023년 시장에서의 도전에도 불구하고, DZS는 기술을 발전시키고 고객 시험을 가속화했습니다. 수정으로 인해 2022년의 1,700만 달러 수익이 이연되었습니다. 2023년에는 이전에 이연된 수익 중 20만 달러가 인식되었습니다. 2023년 12월 31일 기준으로 DZS는 2,100만 달러의 현금 잔고와 약 7,500만 달러의 재고를 보유하고 있었습니다. 이 회사는 광대역 포트폴리오 강화, AI 및 보안 구현, 운영 비용 최적화에 집중하고 있습니다.
DZS (OTC: DZSI), développeur de solutions logicielles pour le Network Edge, la connectivité et le cloud, a terminé la révision de ses résultats financiers pour 2022 et le premier trimestre de 2023, et a déposé des rapports pour les périodes restantes de 2023. L'entreprise est maintenant à jour avec ses dépôts auprès de la SEC jusqu'en 2023. Malgré des défis sur le marché en 2023, DZS a fait avancer sa technologie et accéléré les essais clients. La révision a entraîné un report de 17 millions de dollars de revenus de 2022, tandis qu'en 2023, 200 000 dollars de revenus précédemment reportés ont été reconnus. Au 31 décembre 2023, DZS avait un solde de trésorerie de 21 millions de dollars et environ 75 millions de dollars en inventaire. L'entreprise se concentre sur l'amélioration de son portefeuille de large bande, l'implémentation de l'IA et de la sécurité, et l'optimisation des coûts opérationnels.
DZS (OTC: DZSI), ein Entwickler von Softwarelösungen für Network Edge, Konnektivität und Cloud, hat die Neufeststellung seiner finanziellen Ergebnisse für 2022 und das erste Quartal 2023 abgeschlossen und Berichte für die verbleibenden Zeiträume 2023 eingereicht. Das Unternehmen ist jetzt aktuell mit seinen SEC-Einreichungen bis 2023. Trotz der Marktchallenges im Jahr 2023 hat DZS seine Technologie weiterentwickelt und die Kundenversuche beschleunigt. Die Neufeststellung führte zu 17 Millionen Dollar an Einnahmen aus 2022, die verschoben wurden, während im Jahr 2023 200.000 Dollar an zuvor verschobenen Einnahmen anerkannt wurden. Am 31. Dezember 2023 verfügte DZS über einen Barbestand von 21 Millionen Dollar und etwa 75 Millionen Dollar an Inventar. Das Unternehmen konzentriert sich darauf, sein Breitbandportfolio zu verbessern, KI und Sicherheit umzusetzen und die Betriebskosten zu optimieren.
- Completion of financial restatement process for 2022 and Q1 2023
- Current status with SEC filings through 2023
- Advancement in technology and acceleration of customer trials despite market challenges
- Focus on broadband portfolio advancement and AI implementation
- Cash balance of $21 million and $75 million in inventory as of December 31, 2023
- Deferral of $17 million revenue previously recorded in 2022
- $16.8 million of deferred revenue not recognized as of December 31, 2023
- Missed Nasdaq deadline for SEC filings, resulting in delisting
- Challenging market and business environment in 2023
- Divestiture of low margin Asia business
Insights
The restatement of financial results is a significant development for DZS, impacting investor confidence and financial transparency. The
The
DZS's focus on fiber and fixed wireless broadband, along with AI and advanced security integration, aligns with industry trends towards edge computing and enhanced network capabilities. The mention of accelerating trials with marquee service providers across multiple regions is promising, suggesting potential for future growth.
However, the company faces challenges from delays in government broadband stimulus programs, particularly the BEAD Program in the US. This could impact near-term growth prospects. The emphasis on operational cost optimization and portfolio advancement indicates a strategic pivot to improve competitiveness. The acquisition of NetComm could strengthen DZS's position in broadband connectivity, potentially offsetting some of the headwinds faced in 2023.
The completion of the restatement process and filing of reports with the SEC is a critical step in addressing compliance issues. However, missing the Nasdaq deadline for current filings is a serious matter that could lead to potential delisting concerns if not resolved promptly. The company's acknowledgment of enhancements to internal controls and governance following this process is positive, but investors should closely monitor future compliance.
The restatement's impact on revenue recognition, particularly the deferral and non-recognition of significant amounts, raises questions about past accounting practices. While the company has taken corrective action, this situation may increase scrutiny from regulators and auditors, potentially leading to additional compliance costs or legal challenges in the future.
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 process, and now have completed the restatements with respect to 2022 and the first quarter of 2023, as well as the reports for the remaining periods in 2023,” said Charlie Vogt, President and CEO, DZS. “Following a strong top line revenue growth environment in 2021 and 2022, 2023 represented a challenging market and business environment. Despite the market challenges in 2023, we advanced our technology and accelerated numerous marquee customer trials. We believe that 2023’s slowdown in capital investments from service providers was primarily caused by an over-rotation of inventory, delays with government broadband stimulus programs, including the United States Broadband Equity, Access and Deployment (BEAD) Program, and distractions surrounding our financial statement restatement. Notwithstanding, DZS continued to implement its vision and optimize its business in 2024, divesting our low margin Asia business and acquiring broadband connectivity leader NetComm. I am thankful for the commitment of our employees and support from our customers that have enabled us to remain resilient and better prepared for the future.”
DZS is capitalizing on new opportunities fueled by the accelerating demands of emerging applications, the industry evolution moving bandwidth and intelligence closer to the network edge and the operational requirements to deliver enhanced network assurance for improving the subscriber experience.
From a technology, customer and operational perspective, DZS is focused on advancing its fiber and fixed wireless broadband portfolio, implementing AI and advanced security across its portfolio, accelerating active trials with marquee service providers spanning North America, Europe/Middle East/Africa (EMEA) and Australia/New Zealand (ANZ), and continuing to optimize operational cost.
“Although we missed the required deadline imposed by Nasdaq to be current with our SEC filings, which has been disappointing, the process has yielded necessary actions which have resulted in enhancements to our internal controls and governance,” said Misty Kawecki, CFO, DZS.
The specific changes resulting from the restatement of DZS financial statements are in DZS filings.
The following summarizes certain effects:
- On an annualized basis,
$17 million of revenue previously recorded in 2022 is deferred and not recognized in 2022 - For 2023, on an annualized basis,
$200 K of previously-deferred revenue is being recognized which is the result of$2.9 million in net recognized revenue for the Americas and EMEA and net$2.7 million in net deferred revenue for Asia $16.8 million of deferred revenue will not be recognized by DZS as of December 31, 2023 of which we anticipate$15 million will be attributable to the Asia business at the time of divestiture
The revenue above are annualized and do not include revenue deferred in one quarter and recognized in another within a given year. As of December 31, 2023, DZS had a cash balance of
About DZS
DZS Inc. (OTC: DZSI) is a developer of Network Edge, Connectivity and Cloud Software solutions enabling gigabit broadband everywhere.
DZS, the DZS logo, and all DZS product names are trademarks of DZS Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of the Company’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results could differ materially and adversely from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risk factors contained in the Company’s SEC filings available at www.sec.gov, including without limitation, the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings. In addition, additional or unforeseen affects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.
For further information see: www.DZSi.com
DZS on Twitter: https://twitter.com/dzs_innovation
DZS on LinkedIn: https://www.linkedin.com/company/DZSi/
Investor Inquiries:
Ted Moreau, Vice President, Investor Relations
Email: IR@dzsi.com
FAQ
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