Tue, Aug 20, 12:00 PM (147 days ago)
For the quarter ended March 31, 2024, DZS Inc. reported a significant decline in net revenue, falling 37.6% to $27.7 million from $44.4 million in the prior year. This decline was primarily driven by reduced spending from major customers in the Americas and EMEA regions. Gross profit decreased to $12.6 million, with a gross margin increase to 45.6% due to lower costs of revenue, which fell by 44.7% to $15.1 million. Operating expenses also decreased significantly by 32.1% to $23.5 million, reflecting cost-saving measures, particularly in research and development and selling, general, and administrative expenses. The net loss narrowed by 21.5% to $18.7 million compared to $23.8 million a year earlier. The company’s cash position weakened, with cash and equivalents dropping to $2.6 million from $13.8 million. DZS's total debt stood at $7.6 million, and it reported cash used in operations of $20.4 million, indicating ongoing liquidity challenges. The recent divestiture of Asian subsidiaries aims to streamline operations and refocus resources, although uncertainties remain regarding future revenue streams and market conditions.