Financial Results for 2022, 2023, Q1 and Q2 2024 DZS Inc Earnings Call Transcript
Key Points
- DZS Inc (DZSI) has successfully completed its restated and delayed periodic reports, ensuring compliance with SEC requirements.
- The company has made significant progress in reducing operating expenses by approximately 29% during the second half of 2023.
- DZS Inc (DZSI) reported an improvement in adjusted gross margins from 38.1% in the first half of 2023 to 39.8% in the first half of 2024.
- The acquisition of NetComm is expected to be accretive, adding significant scale and new revenues to DZS Inc (DZSI)'s connectivity products.
- The company anticipates double-digit growth in orders and revenue in the second half of 2024, driven by the inclusion of NetComm and the timing of fiber to the home and enterprise projects.
- DZS Inc (DZSI) experienced a decline in revenue, with first half 2024 revenue at $58.7 million compared to $74.9 million in the first half of 2023, a 21% year-over-year decrease.
- The company recorded a $2.8 million loss on the sale of its Asia business during Q2 2024.
- DZS Inc (DZSI) faced a significant charge for excess inventory of $25 million in 2023, impacting gross margins.
- The restatement process and associated delays have caused disappointment among customers, suppliers, and shareholders.
- The company reported an adjusted EBITDA loss of $11 million in the first half of 2024, although this was an improvement from a loss of $20 million in the first half of 2023.
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the DZS's Q2 2024, financial results conference call. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Jeff Berkes, SVP Marketing and Investor Relations. Sir, please begin.
Thank you, Denny, and welcome to the DZS conference call to discuss Q2 2024, financial results. Joining me today are DZS President and CEO, Charlie Vogt and CFO, Misty Kawecki.
During the call, we will provide projections and other forward-looking statements based on our current expectations regarding future events or the future financial performance of the company. Such statements are subject to risks and uncertainties, and actual events or results may differ materially.
Please refer to documents that the company files with the SEC, including the most recent 10-Q and 10-K reports and the forward-looking statements section of our Tuesday, September 3, press release. These documents identify important risk factors which can
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