Dzs Inc. (NASDAQ:DZSI)

Thursday, October 29, 2020

DZS stockholders and prospective stockholders,

I am pleased to share with you our inaugural DZS quarterly stockholder letter. Moving forward, we will use this vehicle to provide a quarterly market, business and financial stockholder update.
Growing demand for our disruptive and leading-edge mobile transport solutions, and continued demand for our fiber-based broadband access and customer premises solutions, resulted in record quarterly revenue in the third quarter of 2020 of $93.9 million, up 33% compared with $70.5 million in the second quarter of 2020 and 31% compared with $71.5 million in the third quarter of 2019.

One of the most important technology, business, and go-to-market strategy assessments stockholders should understand and appreciate about DZS is the company’s expansion plan targeting the North America, Latin America, Europe, Middle East, and Africa (EMEA) regions. Over the past decade, countries such as South Korea and Japan have been widely recognized as leading the world in the rapid evolution towards ultra high-speed broadband and mobile services. These countries have often led the lists of the most connected nations, with the highest average broadband speeds and wide adoption of many of the world’s most advanced broadband applications. Much of this success has been achieved by utilizing regional access vendors based in Asia and leveraging the deep relationships these companies have with local service providers.

Despite innovative technologies and compelling products, it has historically been challenging for western-based technology companies to compete, partner, and succeed in the most advanced Asian markets. What sets DZS apart from many of our peers is that we are an American company, headquartered in Plano, Texas, and already an established technology leader and widely deployed in many of Asia’s most connected countries.

To see the full letter go here.

First Quarter 2013 Results

• Revenue for the first quarter of 2013 was $28.4 million compared to $27.1 million for the first quarter of 2012 and $28.3 million for the fourth quarter of 2012.
• Net income for the first quarter of 2013, calculated in accordance with generally accepted accounting principles (“GAAP”), was $0.2 million or $0.01 per share compared with a net loss of $3.4 million or $0.11 per share for the first quarter of 2012 and a net income of $0.7 million or $0.02 per share for the fourth quarter of 2012.

"We’re very pleased to announce that we achieved or exceeded our revenue, gross margin and expense targets thereby generating positive free cash flow from operations and further improving our liquidity," stated Mory Ejabat, Zhone's chief executive officer. "We’re now focused on generating more profitability in each consecutive quarter based on the continued success of our industry leading MxK and the generation of new revenue from our recently launched FiberLAN Optical LAN Solution."