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DZS (DZSIQ) AI Stock Analysis
DZS
(Other OTC:DZSIQ)
DZS faces substantial financial difficulties, with declining revenues and negative profit margins. Despite technical indicators suggesting potential stock momentum and recent strategic initiatives, the company's valuation remains poor due to negative earnings. Positive earnings call projections and corporate strategies provide some optimism, but significant risks remain.
DZS (DZSIQ) vs. SPDR S&P 500 ETF (SPY)
Not enough price history over this period.
- Market Cap
- $3,879
- Dividend Yield
- ―
- Average Volume (3M)
- ―
- Price to Earnings (P/E)
- 0.0
- Beta (1Y)
- -57.82
- Revenue Growth
- ―
- EPS Growth
- ―
- Country
- US
- Employees
- 626
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Communication Equipment
DZS Business Overview & Revenue Model
Company Description
DZS, Inc. engages in the provision of packet-based mobile transport and broadband access solutions. It includes the research, development, test, sale, manufacture, and support of communications equipment in the following areas: broadband access, Ethe...
How the Company Makes Money
DZS makes money through the sale of its network access solutions and services to telecommunications service providers and enterprises. The company generates revenue from the sale of hardware products like optical line terminals and customer premises...
DZS Earnings Call Summary
The earnings call presented a strong revenue growth and improved gross margin, driven by strategic divestitures and successful cost-saving measures. However, increased operating expenses and continued EBITDA losses pose challenges. The company remains optimistic about future profitability and cash flow improvements.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
During the DZS third quarter 2024 earnings call, the company provided guidance with several key performance indicators and projections. DZS reported a 23% quarter-over-quarter increase in revenue to $38.1 million and a non-GAAP adjusted gross margin of 36.7%, up by 6.5% from the previous quarter. The firm also highlighted a significant inventory of $79 million and a backlog of $90 million. They anticipate improved revenue and profitability in Q4 2024 and throughout 2025, driven by a growing sales pipeline and the benefits of the NetComm acquisition. The strategic divestiture of their network assurance and in-home WiFi management portfolio added $34 million in cash and reduced debt by $50 million. Additionally, DZS set four KPIs: growth and profitability, cost savings, sales synergies from the NetComm acquisition, and monetizing inventory. The company aims to achieve breakeven on an adjusted EBITDA basis and positive cash flow in 2025.
DZS Risk Analysis
DZS disclosed 42 risk factors in its most recent earnings report. DZS reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
1 New RiskDZS Peers Comparison
Overall Rating
- DZSIQ53Neutral
AIRG50Neutral
VTSI47Neutral
ASNS46Neutral
PHUN46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| DZSIQ | 53Neutral | $3,908 | 0.00 | -163.61% | ― | ― | ― |
| AIRG | 50Neutral | $54.82M | -7.34 | -24.30% | ― | -9.62% | 2.86% |
| VTSI | 47Neutral | $29.54M | -10.67 | -6.13% | ― | -33.51% | -788.76% |
| ASNS | 46Neutral | $1.30M | -0.02 | -143.41% | ― | -22.15% | 71.74% |
| PHUN | 46Neutral | $38.27M | -2.88 | -13.83% | ― | 14.63% | 11.10% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DZSIQ | Dzs Inc. | ― | ― | ― | |
| AIRG | Airgain Inc | 4.18 | -0.04 | -0.83% | |
| PHUN | Phunware | 1.87 | -0.58 | -23.67% | |
| VTSI | Virtra | 2.61 | -3.21 | -55.15% | |
| ASNS | Actelis Networks, Inc. | 0.04 | -4.95 | -99.10% |
DZS Corporate Events
DZS Inc. Completes Financial Restatement and Strategic Moves
PositiveDZS Inc. has completed its financial restatement and made strategic moves to optimize its business, including divesting certain business units and acquiring NetComm to enhance connectivity solutions. With a focus on sustained profitable growth, the c...
DZS Sells IoT Portfolio to Lantronix for $6.5M
PositiveDZS Inc. has announced the sale of its Industrial IoT solutions portfolio to Lantronix for $6.5 million, a move that enhances Lantronix’s reach in the IoT market while allowing DZS to focus on its core Broadband Networking and Connectivity syst...
DZS Reports Q3 2024 Growth Amid Challenges
NeutralDZS Inc. announced its Q3 2024 financial results, highlighting a quarter of topline growth and progress on key initiatives despite a drop in orders compared to the previous year. The company reported a 22.8% increase in net revenue from Q2 2024 and i...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Feb 01, 2025