DZS Inc. (NASDAQ:DZSI) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET

Company Participants

Ted Moreau - Head of IR

Charles Vogt - President & CEO

Misty Kawecki - CFO

Miguel Alonso - Chief Product Officer

Conference Call Participants

Tore Svanberg - Stifel

Christian Schwab - Craig-Hallum Capital Group

Ryan Koontz - Needham & Co.

Operator

Hello. My name is Jean-Louis. Welcome to the DZS Q1 2023 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to Mr. Ted Moreau, Head of Investor Relations. Please go ahead.

Ted Moreau

Thank you, Jean-Louis, and welcome to the DZS first quarter 2023 earnings conference call. Joining me today to discuss our results are DZS President and CEO, Charlie Vogt; and CFO, Misty Kawecki. Chief Product Officer, Miguel Alonso is also on the call to participate in the Q&A session.

After market closed today, we published first quarter earnings release along with an updated investor presentation which will be referenced throughout today’s earnings call and you can follow along with Charlie and Misty’s commentary.

Our discussion today will contain forward-looking statements based on our current expectations regarding future events or the future financial performance of the company. These statements are subject to risks and uncertainties and actual events or results may differ materially. Please refer to documents that the company files with the SEC, including its most recent 10-Q and 10-K reports as well as being available on the Investor Relations section of our website.

Please note that unless otherwise indicated, the financial metrics being provided to you on this call are determined on a non-GAAP basis. These items together with corresponding GAAP numbers and the reconciliation to GAAP are contained in today’s earning press release. During the second quarter, we will be attending investor conferences hosted by Needham, B. Riley, Craig-Hallum, Cowen and Stifel. Additionally, this Wednesday, May 10th, we will look forward to hosting investors and analysts at an exciting Investor Day that we have planned at our headquarters in Dallas.

I will now turn the call over to Charlie.

Charles Vogt

Thanks Ted and welcome to our first quarter earnings call. As reflected in our first quarter 2023 operating results and despite a robust backdrop for smart, secure and high-speed broadband solutions, certain customer deployments -- certain customer inventory levels hindered our ability to maximize revenue at the high end of our revenue guidance. Beneath the headline numbers, we continue to make encouraging progress in positioning the company to benefit from what will be a favorable long-term secular growth trend. I'm referring to both revenue growth and improved gross margin expansion, which combined will deliver favorable financial results measured by earnings and cash flow.