Q3 2024 DZS Inc Earnings Call Transcript
Key Points
- DZS Inc (DZSI) reported a 23% increase in revenue quarter over quarter, reaching $38.1 million.
- The company achieved a nongaap adjusted gross margin of 36.7%, up by 6.5% from the previous quarter.
- DZS Inc (DZSI) successfully divested its network assurance and in-home Wi-Fi management portfolio, securing $34 million in an all-cash transaction.
- The acquisition of Netcomm has added market-leading fiber extension, home broadband, and fixed wireless access technology to DZS Inc (DZSI)'s portfolio.
- The company has a growing sales pipeline and a robust backlog, indicating potential for future revenue growth.
- Operating expenses increased due to costs associated with the Netcomm acquisition and final restatement-related costs.
- Adjusted EBITDA was unfavorable by $2 million compared to Q2 2024 due to backlog shipment conversion issues.
- The company faced challenges from an over-rotation of inventory and higher costs of capital.
- DZS Inc (DZSI) reported a loss of $9.3 million in adjusted EBITDA for the third quarter.
- Days payable outstanding (DPO) remained high at 242 days, indicating potential cash flow management issues.
Good day. Ladies and gentlemen, thank you for standing by. My name is John and I'll be your conference operator for today. At this time. I would like to welcome everyone to the DZS third quarter, 2024 financial results conference call.
At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question. Press star one again. Thank you. I would now like to turn the call over to Mr Geoff Burke SVP, marketing and investor relations. Please go ahead.
Thank you John and welcome to the DZS conference call to discuss Q3 2024 financial results. Joining me today are DZS President and CEO Charlie vote and interim CFO Brian Chestnut. During our call, we will provide projections and other forward-looking statements based on our current expectations regarding
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