DZS Reports Q2 2024 Financial Performance Highlights
DZS Reports Q2 2024 Financial Highlights
DZS (NASDAQ: DZSI), a leader in networking and connectivity solutions, announced its financial results for the second quarter of 2024, marking a significant milestone for the company. This announcement comes after the firm has successfully filed all necessary Form 10-Q and 10-K reports with the SEC, illustrating its commitment to transparency and compliance.
“The second quarter of 2024 represented a defining period for DZS,” stated Charlie Vogt, President and CEO. The company's key priorities included developing high-quality broadband access solutions, ensuring on-time product delivery, optimizing cost structures, and monetizing $75 million in paid inventory. The divestiture of the Asia division has allowed DZS to sharpen its focus on North America and other regions, fostering improved gross margins moving forward. Additionally, the strategic acquisition of NetComm is projected to enhance overall financial performance.
Revenue and Earnings Overview
In Q2 2024, DZS reported orders totaling $38 million, a notable increase from $36 million in Q2 2023. However, the total orders for the first-half of 2024 reached $67 million, down from $72 million in the previous year.
Revenue remained steady at $31 million for Q2 2024, aligning with revenue figures from Q2 2023. However, comparing first-half revenue figures, there was a notable decline from $75 million in 2023 to $59 million in 2024, reflecting broader market influences.
Profitability Metrics
Gross margin improved to 33.6% in Q2 2024 compared to 32.7% in the same quarter of the prior year. The non-GAAP gross margin stood at 34.5%, while total GAAP operating expenses reduced significantly to $28 million from $31 million in Q2 2023. It reflects DZS’s strong commitment to reducing overhead and enhancing operational efficiency.
Adjusted EBITDA and Earnings Per Share
DZS reported a net income of $23 million under GAAP standards for Q2 2024, contrasting with a net loss of $(11) million in adjusted non-GAAP terms. The loss in Adjusted EBITDA improved to $(7) million compared to $(13) million in the second quarter of 2023. This adjustment showcases DZS's ongoing efforts towards stabilizing financial performance.
Strategic Focus Ahead
Going forward, DZS is intent on capitalizing on approximately $150 million of scheduled backlog while expanding its sales pipeline and converting inventory into cash. These strategic objectives are key to bolstering the company’s growth potential in upcoming quarters.
Frequently Asked Questions
What were DZS's revenue figures in Q2 2024?
DZS reported revenue of $31 million for Q2 2024, matching the revenue from Q2 2023.
How did DZS's gross margin perform in Q2 2024?
The gross margin for DZS increased to 33.6% in Q2 2024, up from 32.7% the previous year.
What strategic actions did DZS take in 2024?
DZS divested its Asia business to focus on regions like North America, Europe, and Australia, and acquired NetComm to enhance sales.
What is the outlook for DZS in subsequent quarters?
DZS is optimistic about its backlog of scheduled orders and plans to convert $75 million of paid inventory into cash in the near future.
Who can I contact for investor inquiries related to DZS?
For investor inquiries, you can reach Geoff Burke, SVP of Marketing, via email at IR@dzsi.com.
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