NEW YORK, June 10, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DZS Inc. ("DZS" or the "Company") (NASDAQ: DZSI).
If you suffered losses exceeding $50,000 investing in DZS stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/DZSI.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The investigation focuses on the propriety of DZS's accounting and the effectiveness of its internal controls over financial reporting.
On May 8, 2023, DZS announced its financial results for Q1 2023 that included Q1 revenue of $91 million, an 18% increase year-over-year and within the guidance range of $90 - $100 million.
But, on June 1, 2023, DZS announced that it would restate its financial results for its fiscal quarter ended Mar. 31, 2023. The company admitted that it improperly recognized approximately $15 million of revenue during the quarter. The company further revealed that "[t]he restatement relates to the timing of revenue recognition with respect to two customer projects" and "'[t]he most significant of the two revenue restatements is with a long-standing, highly valued customer.'" The improperly recognized revenue equates to an approximate 19% overstatement during Q1 2023, without which DZS would have fallen well short of the guidance range.
In addition, DZS withdrew its Q2 2023 guidance issued on May 8, 2023.
This news drove the price of DZS shares crashing lower on June 1, 2023.
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SOURCE Faruqi & Faruqi, LLP
