DASAN Withers on Weak Q3 Numbers

DASAN Zhone Solutions Inc (NASDAQ:DZSI) reported weak preliminary sales results for its third quarter. The company said it expects preliminary Q3 sales of $70 million to $72 million.

The Oakland-based company expects net revenue for the third quarter of 2019 to range between $70.0 million and $72.0 million (against previous guidance of $88.0 million to $94.0 million issued on August 13), which compares to $71.9 million reported for the third quarter of
2018.

DZS’s preliminary net revenue range for the third quarter of 2019 reflects the recent industry wide trends in reduced carrier spend combined with temporary postponements in capital spending for Fiber-to-the-Home project at selected DZS customers.

Said CEO Yung Kim, "Although our preliminary Q3 results were lower than anticipated due to various factors, including softer global telco wireline carrier spending in the second half of 2019, we continue to be very encouraged by the progress we are making on our 5G growth initiatives."

DZS intends to report complete financial results for the third quarter of 2019 after the market closes on Tuesday, November 12.
Zazan prides itself on being “a global leader in network access solutions for service providers and enterprise networks.

"The Company provides a wide array of reliable, value-add networking technologies—including broadband access, mobile backhaul, Ethernet switching, Passive Optical LAN, and software-defined networks—to a wide range of the world’s most innovative network operators."

Shares slumped $1.83, or 19%, to $7.63