DZS INC Reports Fourth Quarter Earnings Results for FY2022
March 7, 2023
Earnings report
DZS INC ($NASDAQ:DZSI) reported their earnings results for the fourth quarter of FY2022, ending on December 31, 2022, on February 16, 2023. During this period, the company experienced a total revenue of -$14.6 million, a decrease of 538.6% from the previous year. Despite this decrease, DZS INC was able to report net income of $100.2 million, a 2.2% increase from the prior year. This demonstrates the company’s ability to stay profitable despite challenging times.
The increased net income can be attributed to their efforts to control costs and optimize their operations. Going forward, the company is confident that they will continue to drive profitability by maintaining their current strategies and expanding into new markets. With their solid financial record and commitment to innovation, DZS INC is positioned to remain a strong leader in their industry.
Price History
The company’s stock opened at $12.6, but quickly slid, closing at $12.1, down by 4.5% from its prior closing price of $12.6. This marks a significant downturn for DZS INC, with the stock currently trading significantly lower than the 12.6 opening price. Investors have been closely monitoring DZS INC’s financial performance as the company restructures and looks to expand its operations. As a result of this report, it appears that the company’s stock is likely to remain volatile in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dzs Inc. More…
| Total Revenues | Net Income | Net Margin |
| 375.69 | -37.43 | -9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dzs Inc. More…
| Operations | Investing | Financing |
| -36.9 | -9.48 | 23.78 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dzs Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 385.01 | 242.28 | 3.95 |
Key Ratios Snapshot
Some of the financial key ratios for Dzs Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | – | -9.0% |
| FCF Margin | ROE | ROA |
| -10.8% | -16.7% | -5.5% |
Analysis
GoodWhale has conducted an analysis of DZS INC‘s financials and concluded that it is classified as a ‘rhino’ by our Star Chart. This type of company is one that has achieved moderate revenue or earnings growth. Investors who may be interested in such a company may be looking for strong growth prospects along with a decent level of profitability. DZS INC scores decently in terms of growth and profitability but scores relatively weakly in terms of asset and dividend. However, its intermediate health score of 4/10 considering its cash flows and debt suggests that it is likely to safely ride out any crisis without the risk of bankruptcy. This makes it an attractive option for investors looking for a safe yet moderately growing investment option. More…
Peers
The competition in the telecommunications industry is fierce. DZS Inc. is up against some of the biggest names in the business, including Extreme Networks Inc., ADVA Optical Networking SE, and Ciena Corp. Each company is striving to provide the best products and services to their customers. While DZS Inc. has a strong presence in the market, its competitors are not far behind.
– Extreme Networks Inc ($NASDAQ:EXTR)
With a market cap of $2.5 billion and a return on equity of 40.12%, Extreme Networks is a publicly traded networking company that provides software-driven networking solutions to enterprise customers. The company delivers high-performance switching, routing, and security solutions that enable customers to build agile, data-driven networks that connect their people, applications, and devices.
– ADVA Optical Networking SE ($LTS:0NOL)
ADVA Optical Networking SE has a market cap of 1.08B as of 2022, a Return on Equity of 4.24%. The company provides optical and Ethernet-based networking solutions.
– Ciena Corp ($NYSE:CIEN)
Ciena is a network specialist that provides equipment, software and services that support mission-critical applications for communications service providers, enterprises and governments worldwide. Its products and services enable its customers to drive revenue, reduce expenses and improve efficiency by delivering high-capacity, high-speed networking solutions. Ciena’s common stock is listed on the NASDAQ Global Select Market under the symbol CIEN and is included in the S&P 500 index.
ROE is return on equity and is a measure of how well a company uses investment funds to generate profits. A company with a higher ROE is using funds more effectively to generate profits. Ciena’s ROE of 6.6% indicates that it is using funds efficiently to generate profits.
Ciena’s market cap is 6.64B as of 2022. This means that the market value of Ciena’s outstanding shares is 6.64B. Ciena’s market cap is a good indicator of the company’s size and its position in the market.
Summary
DZS Inc. reported a decrease of 538.6% in total revenue from the prior year to -$14.6 million. However, net income increased 2.2% from the previous year to $100.2 million. This financial news was met with a decline in stock price, which has investors asking questions about their investment in DZS Inc. With such large swings in revenue and income, further analysis is needed to determine the future performance of this company. Investors should take note of the financial trends and research the underlying drivers of the revenue and income changes before committing to an investment.
Related Posts
Recent Posts
