DZS INC Reports Lower Than Expected Q3 Non-GAAP EPS and Revenue
May 10, 2023
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DZS INC ($NASDAQ:DZSI), a global provider of communications solutions and services, recently announced its third quarter financial results. The company reported Non-GAAP earnings per share (EPS) of -$0.06, which fell short of analyst expectations by $0.01. Revenue also came in below projections at $90.81M, missing estimates by $4.49M. DZS INC is a publicly traded company that offers innovative network solutions and services to the telecommunications industry.
The company develops, manufactures, and markets a broad range of communication products and services, such as access networks, data access solutions, and customer premise equipment. DZS INC is headquartered in California and has offices across North America, Europe, and Asia.
Earnings
DZS INC released its latest earning report for Fiscal Year 2022 Q4, with non-GAAP earnings per share (EPS) and revenue lower than expected. As of December 31 2022, the company earned a total revenue of 100.18M USD with a net income loss of 14.56M USD. Despite this lower-than-expected performance, there has been a 2.2% increase in total revenue compared to the previous year. Over the past three years, DZS INC’s total revenue increased from 88.68M USD to 100.18M USD.
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 |
| -50.9 | -28.01 | 64.77 |
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 | 4.61 |
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 |
| -14.8% | -16.8% | -5.5% |
Share Price
On Monday, DZS INC, a provider of networking solutions, reported lower than expected third-quarter non-GAAP earnings per share (EPS) and revenue. As a result, DZS INC stock opened at $6.7 and closed at $6.6, up by 0.3% from the prior closing price of 6.6. Live Quote…
Analysis
At GoodWhale, we recently completed an analysis of DZS INC‘s financials. Our risk rating flagged DZS INC is a high risk investment in terms of both financial and business aspects. Our detection system identified two risk warnings in the income sheet and balance sheet – register with us to take a closer look. By taking an in depth analysis of DZS INC’s financials, we have identified several risk indicators that investors should be aware of. This includes examining the company’s current assets and liabilities, cash flow, equity, and more. Additionally, our risk rating system has analyzed the company’s business model, competitive landscape, and other factors to determine its overall risk profile. By registering with GoodWhale, investors can take a closer look at DZS INC’s financials and the associated risks. Our analysis provides valuable insight into the potential risks associated with investing in DZS INC. With this information, investors can make more informed decisions about their investments. More…
Peers
The competition in the telecommunications industry is fierce. DZS Inc. is up against some of the biggest names in the business, including Extreme Networks Inc., ADVA Optical Networking SE, and Ciena Corp. Each company is striving to provide the best products and services to their customers. While DZS Inc. has a strong presence in the market, its competitors are not far behind.
– Extreme Networks Inc ($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., a global leader in network access solutions, recently reported its quarterly financial results. The company reported a non-GAAP earnings per share of -$0.06, missing analysts’ estimates by $0.01. Investors may be concerned with the company’s weak performance and outlook.
Nevertheless, DZS’s long-term fundamentals remain strong, with a leading customer base, extensive patent portfolio, and experienced management team. Strategic investments and an effective cost-containment program could prove beneficial for investors as the company works to increase shareholder value and improve its financial performance.
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