From GlobeNewswire:

DZS has obtained $25 million in funding and signed an agreement to sell its Asia operations for $48 million, leaving the expected cash refund to the company at $5 million. They have also gained $25 million in cash from EdgeCo LLC and Invites Ventures, following acquisitions over the past two years.

The company expects the sale of their Asia business to enable them to focus on the Americas, EMEA, and ANZ regions to facilitate growth and sustain a more software-driven business model, especially in light of new multi-year FTTX networking and 5G projects secured in 2023. DZS anticipates a refocus on fiber-forward service providers in these regions will enhance gross margins by the end of 2024.

DZS attributes the reset taking place in 2023, citing post-pandemic supply chain challenges, supply and inventory difficulties, and a recently published restatement process. They believe a contribution from invigorated service providers who are transitioning away from Chinese vendors due to security concerns will allow them to see valuable growth over the next several years.

DZS is hosting a conference call on Monday, January 8, 2024, at 8:30 a.m. ET. DZS Inc. is a global leader of access, optical and AI-driven cloud software solutions. The Company’s actual results could differ materially and adversely due to the risks, uncertainties, and assumptions difficult to predict in the global economic climate and the effects of the COVID-19 pandemic.



Read more: DZS Secures $25 Million in Funding and Signs Definitive