DZS Receives Expected Delisting Notice from Nasdaq
DZS (Nasdaq: DZSI) has received a delisting notice from Nasdaq due to failure to meet the August 5, 2024 deadline for regaining compliance with periodic filing obligations. Trading of DZS common stock will be suspended on August 8, 2024. The company is working to complete restatements and file delayed reports, including Quarterly Reports for Q2, Q3 2023, and Q1 2024, as well as the 2023 Annual Report. DZS plans to apply for relisting on Nasdaq once filings are complete, but success is not guaranteed. In the interim, DZS expects its shares to trade over-the-counter under the DZSI ticker. The company cites the impact of its recently divested Asia business and acquisition of NetComm as factors in the delay. DZS plans to host an earnings call after filing all restated and delayed reports, including Q2 2024.
DZS (Nasdaq: DZSI) ha ricevuto un avviso di esclusione da Nasdaq per non essere riuscita a rispettare la scadenza del 5 agosto 2024 per ripristinare la conformità con le obbligazioni di deposito periodico. La negoziazione delle azioni comuni di DZS sarà sospesa l'8 agosto 2024. L'azienda sta lavorando per completare le rettifiche e presentare i rapporti in ritardo, inclusi i Rapporti Trimestrali per il secondo e il terzo trimestre del 2023, e il primo trimestre del 2024, oltre al Rapporto Annuale 2023. DZS prevede di fare richiesta per essere riammessa al Nasdaq una volta completati i depositi, ma il successo non è garantito. Nel frattempo, DZS si aspetta che le sue azioni vengano negoziate over-the-counter sotto il ticker DZSI. L'azienda cita l'impatto della sua recente dismissione dell'attività in Asia e l'acquisizione di NetComm come fattori del ritardo. DZS prevede di ospitare una chiamata sugli utili dopo aver presentato tutti i rapporti rettificati e in ritardo, incluso il secondo trimestre del 2024.
DZS (Nasdaq: DZSI) ha recibido un aviso de exclusión de Nasdaq debido a su incapacidad para cumplir con el plazo del 5 de agosto de 2024 para recuperar la conformidad con las obligaciones de presentación periódica. La negociación de las acciones comunes de DZS se suspenderá el 8 de agosto de 2024. La compañía está trabajando para completar las correcciones y presentar los informes retrasados, incluidos los Informes Trimestrales para el segundo y tercer trimestre de 2023, y el primer trimestre de 2024, así como el Informe Anual de 2023. DZS planea solicitar la reinscripción en Nasdaq una vez que se completen las presentaciones, pero no se garantiza el éxito. Mientras tanto, DZS espera que sus acciones se negocien en el mercado extrabursátil bajo el ticker DZSI. La compañía cita el impacto de su reciente desinversión en Asia y la adquisición de NetComm como factores en la demora. DZS planea realizar una conferencia telefónica de resultados después de presentar todos los informes rectificados y retrasados, incluido el segundo trimestre de 2024.
DZS (Nasdaq: DZSI)는 정기 제출 의무를 충족하기 위한 2024년 8월 5일 마감일까지 기한을 지키지 못해 Nasdaq으로부터 상장 폐지 통보를 받았습니다. DZS의 보통주 거래는 2024년 8월 8일에 중단됩니다. 회사는 2023년 2분기, 3분기 및 2024년 1분기의 분기 보고서를 포함하여 수정 및 지연된 보고서를 제출하기 위해 작업하고 있습니다. DZS는 제출이 완료되면 Nasdaq에 재상장 신청을 할 계획이지만 성공이 보장되지는 않습니다. 그 사이에 DZS는 DZSI 티커로 장외에서 주식이 거래될 것으로 예상하고 있습니다. 회사는 최근 아시아 사업 매각과 NetComm 인수로 인한 지연 요인을 언급하고 있습니다. DZS는 모든 수정된 보고서와 지연된 보고서, 특히 2024년 2분기를 제출한 후 실적 발표 전화를 개최할 계획입니다.
DZS (Nasdaq: DZSI) a reçu un avis de radiation de Nasdaq en raison de son incapacité à respecter la date limite du 5 août 2024 pour retrouver la conformité aux obligations de publication périodique. La négociation des actions ordinaires de DZS sera suspendue le 8 août 2024. L'entreprise travaille à finaliser les corrections et à déposer des rapports en retard, y compris les rapports trimestriels pour le deuxième et le troisième trimestre 2023, ainsi que le premier trimestre 2024, ainsi que le rapport annuel 2023. DZS prévoit de demander une nouvelle inscription sur Nasdaq une fois les dépôts terminés, mais le succès n'est pas garanti. Dans l'intervalle, DZS s'attend à ce que ses actions se négocient hors cote sous le ticker DZSI. L'entreprise cite l'impact de sa récente cession de son activité en Asie et l'acquisition de NetComm comme facteurs du retard. DZS prévoit d'organiser une conférence téléphonique sur les résultats après avoir déposé tous les rapports rectifiés et en retard, y compris le deuxième trimestre 2024.
DZS (Nasdaq: DZSI) hat eine Nachricht über die Delistung von Nasdaq erhalten, da es versäumt hat, die Frist vom 5. August 2024 für die Wiederherstellung der Einhaltung der regelmäßigen Offenlegungspflichten einzuhalten. Der Handel mit den Stammaktien von DZS wird am 8. August 2024 ausgesetzt. Das Unternehmen arbeitet daran, die Neuverlautbarungen abzuschließen und verspätete Berichte einzureichen, einschließlich der Quartalsberichte für Q2, Q3 2023 und Q1 2024 sowie dem Jahresbericht 2023. DZS plant, einen Antrag auf Wiederaufnahme an der Nasdaq zu stellen, sobald die Einreichungen abgeschlossen sind, doch der Erfolg ist nicht garantiert. In der Zwischenzeit erwartet DZS, dass seine Aktien unter dem Ticker DZSI außerbörslich gehandelt werden. Das Unternehmen nennt die Auswirkungen der kürzlich veräußerten Asien-Geschäfte und die Übernahme von NetComm als Faktoren für die Verzögerung. DZS plant, eine Ergebnisbesprechung abzuhalten, nachdem alle berichteten und verspäteten Berichte, einschließlich des zweiten Quartals 2024, eingereicht wurden.
- Company plans to apply for relisting on Nasdaq after completing filings
- Shares expected to continue trading over-the-counter under DZSI ticker
- DZS to be delisted from Nasdaq effective August 8, 2024
- Failed to meet August 5, 2024 deadline for regaining compliance with filing obligations
- Delayed filing of restated financials for 2022, Q1 2023, and subsequent reports
- Uncertainty regarding future acceptance for Nasdaq listing
Insights
The delisting of DZS from Nasdaq is a significant negative development for the company and its investors. This action typically results in reduced liquidity, decreased investor confidence and potential difficulty in raising capital. The company's failure to meet filing deadlines for multiple quarters raises serious concerns about its financial management and transparency.
The transition to over-the-counter (OTC) trading may lead to increased volatility and wider bid-ask spreads, potentially impacting shareholder value. While DZS expresses intent to relist on Nasdaq, the process is often lengthy and challenging. Investors should be aware that OTC stocks are subject to less stringent reporting requirements, which could further complicate the company's financial transparency issues.
The mention of recent divestiture and acquisition activities amidst these financial reporting challenges suggests a complex operational environment that may require careful scrutiny from investors.
The delisting scenario for DZS presents significant legal and compliance implications. Failure to meet Nasdaq's listing requirements, particularly regarding timely financial reporting, could expose the company to potential shareholder lawsuits alleging securities fraud or breach of fiduciary duty.
The company's statement about working diligently to complete restatements and file delayed reports is important from a legal standpoint. However, the lack of a definitive timeline for these filings could be viewed unfavorably in any potential legal proceedings.
Investors should be aware that the transition to OTC markets doesn't absolve the company of its reporting obligations under SEC rules. Continued delays in financial reporting could lead to further regulatory scrutiny and potential enforcement actions.
The delisting of DZS from Nasdaq could have far-reaching market implications. Institutional investors often have mandates preventing them from holding OTC stocks, which could lead to forced selling and increased downward pressure on the stock price.
The company's focus on network edge solutions and gigabit broadband is in a high-growth sector, but the financial reporting issues may overshadow its market potential. Competitors could seize this opportunity to gain market share while DZS grapples with these challenges.
The recent divestiture of the Asia business and acquisition of NetComm indicate a strategic shift, but the timing amidst financial restatements raises questions about the company's ability to effectively execute its business strategy. Investors should closely monitor how these changes impact DZS's market position and financial performance once reports are filed.
Company continues to work diligently toward filing restated financials and delayed reports
DALLAS, Aug. 06, 2024 (GLOBE NEWSWIRE) -- DZS (Nasdaq: DZSI), a developer of Network Edge, Connectivity and Cloud Software solutions enabling gigabit broadband everywhere, announced today, as expected, it received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Nasdaq Hearing Panel (“the Panel”) has determined to delist the common stock of the Company from Nasdaq (the “Decision”). The Decision indicates that the Company failed to meet the August 5, 2024, deadline to regain compliance with its periodic filing obligations under Nasdaq Listing Rule 5250(c)(1).
The Decision indicates that trading in the Company’s common stock will be suspended effective at the open of business on August 8, 2024, following which Nasdaq will complete the delisting of the Company’s common stock.
The Company is working diligently to complete the previously disclosed restatements and to file as soon as reasonably practicable the Company’s delayed Quarterly Reports on Form 10-Q for the three months ended June 30, 2023, September 30, 2023 and March 31, 2024, and the Annual Report on Form 10-K for the year ended December 31, 2023 (the “Delayed Reports”). The Company then intends to apply to restore its listing on Nasdaq as soon as practicable; however, no assurance can be given at this point regarding a definitive date on which such periodic reports will be filed or whether the Company will ultimately be accepted to be listed again on Nasdaq in the future.
While the Company’s common stock will be suspended and then delisted from trading on Nasdaq, the Company expects its shares will be traded on an over-the-counter market with its existing ticker symbol (DZSI).
“We missed the required filing of our restated periodic reports for the periods of 2022 and Q1 2023 and Delayed Reports,” said Misty Kawecki, Chief Financial Officer, DZS. “We have taken a thorough approach to completing the filing of these reports, which included assessing the related impact of our recently divested Asia business on April 5, 2024, and our acquisition of NetComm on June 1, 2024. Unfortunately, we did not meet the timeline required by Nasdaq to file such restated periodic reports and Delayed Reports.”
Once DZS has filed all restated periodic reports and Delayed Reports, as well as our Form 10-Q for the second quarter of 2024, the Company will host an earnings call.
About DZS
DZS Inc. (Nasdaq: 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
Why is DZS (DZSI) being delisted from Nasdaq?
When will DZS (DZSI) stock be suspended from trading on Nasdaq?
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