DZS files Q2 2024 financial results with progress in key areas and improved profitability.

From GlobeNewswire: 2024-09-03 08:16:00

DZS (OTC: DZSI) filed Q2 2024 financial results, showing progress in key areas like creating broadband solutions, on-time delivery, cost optimization, and inventory monetization. Revenue was $31 million, down from $36 million in Q2 2023. The divestiture of the Asia business is expected to improve gross margin. Acquisition of NetComm in June is expected to be beneficial.

Financial highlights for Q2 and 1H 2024 included: Orders of $38 million, an increase of 6% from Q2 2023. Revenue of $31 million compared to $31 million in Q2 2023. Gross margin of 33.6%. Operating expenses of $28 million. Net income of $23 million GAAP and $(11) million adjusted non-GAAP in Q2 2024. Diluted Net EPS of $.61 on a GAAP basis.

DZS experienced improved profitability despite soft capital spending from service providers. They remain focused on converting $150 million backlog, increasing sales pipeline, and turning $75 million of inventory into cash. An earnings call to discuss restated results, including 2022-2024 financials, Asia business divestiture, and NetComm acquisition, will be held on September 5, 2024, at 11:00 a.m. EDT.

DZS reported non-GAAP financial measures like Adjusted Gross Margin, Operating Expenses, Net Income, EBITDA, and Adjusted EBITDA to provide a clearer understanding of its financial performance. These metrics are used by management and industry analysts for evaluation and comparison purposes. The presentation of this information is not a substitute for GAAP measures but complements them for a more holistic view of financial performance.



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