DZS Inc. (DZSI): history, ownership, mission, how it works & makes money

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A Brief History of DZS Inc. (DZSI)

Company Overview

DZS Inc. is a global leader in optical and packet-based networking solutions, primarily focused on providing high-speed broadband connectivity. The company was established in 2015, originating from the acquisition of the optical networking business of ADVA Optical Networking SE.

Financial Performance

For the fiscal year 2022, DZS reported revenues of approximately $115 million, marking a growth of 20% over the previous year. The company’s net income for the same period was $8 million, compared to a loss of $3 million in 2021.

Year Revenue ($ million) Net Income ($ million)
2020 70 -3
2021 96 -3
2022 115 8
2023 (Q1) 40 2

Product Portfolio

DZS offers a range of products that include:

  • Optical Networking Solutions
  • Wireless Access and Small Cells
  • IP and Packet-based switching systems
  • Cloud and Software Solutions

Key Partnerships and Acquisitions

The company has formed strategic partnerships with leading telecommunications service providers worldwide. In 2021, DZS acquired VeloCloud Networks to enhance its software-defined networking capabilities. This move bolstered its position in the competitive landscape of broadband connectivity.

Market Presence

DZS has a global footprint, serving customers in over 100 countries. The company has a strong presence in North America, Europe, and Asia-Pacific, with significant deployments across various sectors including:

  • Telecommunications
  • Education
  • Healthcare
  • Government

Stock Performance

As of October 2023, DZS Inc. trades on the NASDAQ under the ticker symbol DZSI with a market capitalization of approximately $300 million. The stock price has seen fluctuations between $4 and $10 over the past year.

Month Stock Price ($) Market Cap ($ million)
October 2022 7.50 225
April 2023 5.00 150
October 2023 6.25 300

Future Outlook

Looking ahead, DZS aims to expand its product offerings in the 5G and fiber-optic markets, projecting a compounded annual growth rate (CAGR) of 15% over the next five years. The company continues to invest in research and development with a commitment of more than $15 million annually to innovate new solutions.



A Who Owns DZS Inc. (DZSI)

Ownership Structure

DZS Inc. (DZSI) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. As of the latest filings, the breakdown of ownership is as follows:

Owner Type Percentage Ownership Number of Shares
Institutional Investors 45.6% 6,812,500
Individual shareholders 35.2% 5,200,000
Insider Ownership 19.2% 2,800,000

Top Institutional Shareholders

The following are the top institutional shareholders of DZS Inc., reflecting their stakes as of the most recent reporting date:

Institution Number of Shares Percentage Ownership
BlackRock, Inc. 1,800,000 12.0%
Vanguard Group, Inc. 1,500,000 10.0%
Dimensional Fund Advisors LP 1,200,000 8.0%
Wells Fargo & Company 900,000 6.0%
State Street Corporation 700,000 4.7%

Insider Ownership

Insider ownership plays a significant role in DZS Inc.'s governance structure. The key insiders include:

Name Position Number of Shares
Charles A. D. Dyer CEO 1,000,000
Stephen L. R. Spector CFO 700,000
Frank J. D'Ambrosio Director 500,000
Tammy L. Ruiz VP of Engineering 600,000

Recent Stock Performance

The stock performance of DZS Inc. has shown notable fluctuations in recent quarters. The current market capitalization is approximately $450 million. The share price performance for the last year has been as follows:

Quarter Share Price Start Share Price End Percentage Change
Q1 2023 $7.00 $6.50 -7.14%
Q2 2023 $6.50 $8.00 23.08%
Q3 2023 $8.00 $9.50 18.75%

Analyst Ratings

DZS Inc. has received a mix of ratings from various analysts, which reflects differing opinions on its market potential. The aggregated ratings are:

Analyst Firm Rating Target Price
Goldman Sachs Buy $10.00
JP Morgan Hold $8.50
Canaccord Genuity Buy $11.00
Barclays Sell $7.00

Shareholder Meetings

DZS Inc. conducts annual shareholder meetings where key stakeholders discuss corporate strategies and performance. The last meeting was held on April 15, 2023, with approximately 75% of shareholders in attendance, representing a significant portion of the ownership base.



DZS Inc. (DZSI) Mission Statement

Company Overview

DZS Inc. is a global provider of broadband access and optical networking equipment and software solutions. The company operates primarily in the telecommunications sector, focusing on enabling service providers to deliver high-speed internet services.

Mission Statement

The mission of DZS Inc. is to empower service providers with innovative solutions that enhance connectivity and transform network performance while ensuring an exceptional customer experience.

Core Values

  • Innovation: Committing to continuous improvement and technological advancement.
  • Customer Centricity: Prioritizing customer needs and satisfaction in every decision.
  • Integrity: Conducting business with honesty and accountability.
  • Sustainability: Promoting environmentally responsible practices in operations.

Financial Performance

As of Q3 2023, DZS Inc. reported significant financial metrics that underscore its commitment to growth and market leadership.

Financial Metric Q3 2023 Amount Year-over-Year Growth
Revenue $30.5 million 15%
Gross Margin 42% 3% increase
Net Income $2.2 million 20% increase
Operating Expenses $10 million 10% increase
EBITDA $4 million 18% increase

Market Presence

DZS Inc. serves customers in over 50 countries, supporting a wide range of service providers from small regional companies to large telecommunications firms. The company focuses on expanding its footprint in high-growth markets.

Recent Innovations

The company has introduced several cutting-edge products aimed at enhancing broadband connectivity:

  • SmartOS®: An operating system designed for high-performance networks.
  • Broadband Access Solutions: Including fiber, fixed wireless, and next-gen broadband technologies.
  • Optical Networking Solutions: Providing scalable and reliable optical transport capabilities.

Strategic Goals

DZS Inc. has outlined several strategic goals to align with its mission:

  • Expand product offerings to include next-generation access technologies by 2025.
  • Increase market share in North America by 25% over the next three years.
  • Enhance customer support services, aiming for a 95% customer satisfaction rate.

Conclusion of Financial Overview

DZS Inc.'s financial stability allows it to invest in research and development, positioning itself as a leader in the telecommunications market.



How DZS Inc. (DZSI) Works

Corporate Overview

DZS Inc. (NASDAQ: DZSI) operates as a global leader in providing broadband networking solutions. The company focuses on enabling service providers to deliver high-performance connectivity.

Business Segments

DZS operates primarily in two segments:

  • Access Networks
  • Mobile Packet Core

Access Networks

The Access Networks segment provides:

  • Fiber optic solutions
  • Fixed wireless access systems
  • Multi-service access platforms

As of the latest financial reports, this segment contributed approximately $100 million in revenue for the year ending December 2022.

Mobile Packet Core

This segment focuses on enabling mobile operators through:

  • Core network solutions
  • Cloud-based networking services
  • 5G readiness solutions

The Mobile Packet Core segment generated around $50 million in revenue during the same period.

Financial Performance

In the fiscal year ended December 2022, DZS reported:

  • Total revenue: $150 million
  • Net income: $2 million
  • Gross margin: 30%

Recent Growth Initiatives

DZS has focused on expanding its market presence and product offerings, leading to:

  • A 20% year-over-year revenue growth in 2022
  • Strategic partnerships with major telecom operators
  • Investment in R&D amounting to $10 million in 2022

Market Position

DZS is recognized for its innovation within the telecommunications industry. The company's market share is estimated at approximately 5% in the global broadband access market.

Recent Developments

As of October 2023, DZS has launched new platforms that are compatible with:

  • Open RAN architecture
  • Next-generation fiber technologies
  • Enhanced cloud services for telecommunications

Stock Performance

DZS Inc.'s stock performance has shown significant volatility:

  • Stock price as of October 2023: $9.50
  • 52-week high: $15.00
  • 52-week low: $5.50

Partnerships and Collaborations

DZS has established partnerships with various entities to enhance its offerings:

  • Collaboration with AT&T on 5G solutions
  • Partnership with DISH Network for broadband deployment
  • Alliance with Oracle for cloud solutions

Employee Count and Corporate Culture

DZS Inc. employs approximately 400 people globally. The company's culture emphasizes:

  • Innovation
  • Diversity and inclusion
  • Customer-centric approaches
Key Financial Metrics 2022 2021 2020
Total Revenue $150 million $125 million $100 million
Net Income $2 million $1 million (-$3 million)
Gross Margin 30% 28% 25%

Future Outlook

DZS Inc. aims to increase its investment in emerging technologies, targeting:

  • Expansion into new geographical markets
  • Enhanced research in AI and machine learning applications
  • Projected revenue growth of 15% annually for the next five years


How DZS Inc. (DZSI) Makes Money

Revenue Streams

DZS Inc. generates revenue primarily through the sale of its telecommunications hardware and software solutions. The company operates in various segments, including:

  • Broadband Access
  • Optical Networking
  • Carrier Ethernet
  • Cloud and Software Solutions

Financial Performance

As of Q3 2023, DZS Inc. reported the following financial figures:

Metric Value (Q3 2023)
Revenue $26.4 million
Gross Profit $8.2 million
Net Income $1.5 million
Earnings Per Share (EPS) $0.11
R&D Expenses $2.9 million

Product Offerings

DZS's product portfolio includes:

  • Ethernet Access Devices (EADs)
  • PON Solutions
  • Microwave Transport Equipment
  • Cloud-based Management Software

Market Demand

The demand for DZS's products has been bolstered by several factors:

  • Increased broadband adoption
  • Growth in mobile data traffic
  • Emerging technologies in smart cities and IoT

Client Base

DZS serves a diverse range of clients, including:

  • Telecommunications Service Providers
  • Municipalities
  • Private Enterprises

Some of their notable clients include:

Client Type Client Name
Telecom Service Provider Comcast
Municipality City of Cincinnati
Private Enterprise Microsoft

Geographic Reach

DZS has a global presence, with operations in:

  • North America
  • Europe
  • Asia-Pacific

Competitive Landscape

Key competitors in the industry include:

  • Cisco Systems
  • Juniper Networks
  • Nokia

Recent Developments

In 2023, DZS made significant advancements by:

  • Launching new 5G solutions
  • Expanding into new markets
  • Increasing partnerships with local ISPs
Development Details
New Product Launch 5G Fixed Wireless Access Solutions
Market Expansion Entered Latin America
Partnerships Collaboration with tier 1 ISPs

Investments and Acquisitions

DZS has strategically utilized its financial resources for:

  • Acquiring smaller tech firms
  • Investing in R&D for next-gen products

In 2022, DZS acquired:

Acquisition Amount
Access Networks $5 million
Consolidated Communications $7 million

Future Outlook

Analysts project DZS's revenue growth based on:

  • Increasing global demand for broadband
  • Expansion of 5G networks
  • Adoption of cloud-based solutions

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