Net Income
Operating Net (Loss) per
Cost of Gross Gross Margin Operating Income Income Diluted
Revenue Profit Percentage Expenses (Loss) (Loss) Share
-------- -------- ------------ --------- --------- --------- -------------
GAAP amount $23,774 $(1,037) -4.6% $ 29,345 $(30,382) $(29,385) $(0.92)
Adjustments to GAAP
amounts:
Depreciation and
amortization (60) 60 0.3% (1,683) 1,743 1,743 0.05
Stock-based
compensation (268) 268 1.2% (2,897) 3,165 3,165 0.10
Restructuring
and other
charges (4,673) 4,673 20.6% (135) 4,808 4,808 0.15
Acquisition
costs 256 (256) (256) -
Litigation and
restatement (3,641) 3,641 3,641 0.11
Amortization of
capitalized
costs (303) 303 303 0.01
Loss on debt
extinguishment 375 0.01
Unrealized
foreign
exchange
(gains) losses 93 -
Non-GAAP
adjustments to
tax rate 3,096 0.09
Tax effect on
Non-GAAP
adjustments (2,427) (0.08)
Adjusted (Non-GAAP)
amount $18,773 $ 3,964 17.4% $ 21,415 $(17,451) $(15,317) $(0.48)
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DZS INC. AND SUBSIDIARIES
Unaudited Reconciliation of GAAP to Non-GAAP Results
from Continuing Operations
($ in thousands, except per share data)
Set forth below are reconciliations of Non-GAAP Cost
of Revenue, Non-GAAP Gross Profit, Non-GAAP Operating
Expenses, Non-GAAP Operating Income (Loss) (also referred
to as Adjusted EBITDA), Non-GAAP Net Income (Loss),
and Non-GAAP Net Income (Loss) per Diluted Share to
GAAP Cost of Revenue, Gross Profit, Operating Expenses,
Operating Income (Loss), Net Income (Loss), and Net
Income (Loss) per Diluted Share, respectively, which
the Company considers to be the most directly comparable
U.S. GAAP financial measures.
Nine Months Ended September 30, 2024 - Continuing
Operations
--------------------------------------------------------------------------------
Net Income
Operating Net (Loss) per
Cost of Gross Gross Margin Operating Income Income Diluted
Revenue Profit Percentage Expenses (Loss) (Loss) Share
-------- -------- ------------ --------- --------- --------- -------------
GAAP amount $62,605 $34,277 35.4% $ 84,337 $(50,060) $(16,108) $(0.43)
Adjustments to GAAP
amounts:
Depreciation and
amortization (216) 216 0.2% (5,350) 5,566 5,566 0.15
Stock-based
compensation (127) 127 0.1% (6,540) 6,667 6,667 0.18
Restructuring
and other
charges (781) 781 0.8% (459) 1,240 1,240 0.03
Inventory step
up
amortization (1,999) 1,999 2.1% - 1,999 1,999 0.05
Acquisition
costs (933) 933 933 0.02
Litigation and
restatement (11,223) 11,223 11,223 0.30
Amortization of
capitalized
costs (1,303) 1,303 1,303 0.03
Headquarters and
facilities
relocation (51) 51 51 -
Divestiture
costs (610) 610 610 0.02
Bargain purchase
gain - - (41,544) (1.10)
Unrealized
foreign
exchange
(gains) losses 509 0.01
Non-GAAP
adjustments to
tax rate 1,750 0.05
Tax effect on
Non-GAAP
adjustments (479) (0.01)
Adjusted (Non-GAAP)
amount $59,482 $37,400 38.6% $ 57,868 $(20,468) $(26,280) $(0.70)
====== ====== ====== === ======= ======= ======= ===== ====
Nine Months Ended September 30, 2023 - Continuing
Operations
--------------------------------------------------------------------------------
Net Income
Operating Net (Loss) per
Cost of Gross Gross Margin Operating Income Income Diluted
Revenue Profit Percentage Expenses (Loss) (Loss) Share
-------- -------- ------------ --------- --------- --------- -------------
GAAP amount $71,579 $26,148 26.8% $ 95,040 $(68,892) $(72,024) $(2.29)
Adjustments to GAAP
amounts:
Depreciation and
amortization (247) 247 0.3% (4,997) 5,244 5,244 0.17
Stock-based
compensation (894) 894 0.9% (10,040) 10,934 10,934 0.35
Restructuring
and other
charges (5,230) 5,230 5.4% (4,881) 10,111 10,111 0.32
Acquisition
costs (79) 79 79 -
Executive
transition 2 (2) (2) -
Litigation and
restatement (4,117) 4,117 4,117 0.13
Amortization of
capitalized
costs (830) 830 830 0.03
Bad debt
expense, net of
recoveries 213 (213) (213) (0.01)
Long lived
assets
impairment (499) 499 499 0.02
Loss on debt
extinguishment 375 0.01
Unrealized
foreign
exchange
(gains) losses 282 0.01
Non-GAAP
adjustments to
tax rate 13,774 0.44
Tax effect on
Non-GAAP
adjustments (5,842) (0.19)
Adjusted (Non-GAAP)
amount $65,208 $32,519 33.3% $ 69,812 $(37,293) $(31,836) $(1.01)
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(END) Dow Jones Newswires
November 06, 2024 08:03 ET (13:03 GMT)