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| DZS Inc. Gets Nasdaq Delisting Notice, Sets Hearing Request Deadline for February 13 |
In a recent development, DZS Inc. ("DZS" or the "Company") received a notice from Nasdaq, indicating a potential delisting of its securities due to non-compliance with Nasdaq Listing Rule 5250(c)(1). This rule requires companies to timely file all required financial reports with the Securities and Exchange Commission (SEC).
While the notice does not immediately affect the trading of DZS's common stock, the Company is taking proactive steps to address the situation. DZS intends to request a hearing before a Nasdaq Hearings Panel to appeal the delisting determination. Additionally, they seek to extend the stay of any suspension or delisting action until August 3, 2024.
The reason behind the delisting threat is the Company's failure to file its Quarterly Reports on Form 10-Q for the quarterly periods ending June 30, 2023, and September 30, 2023, by the specified deadline. Nasdaq had previously granted DZS an extension until February 5, 2024, to regain compliance, but the Company missed this deadline.
DZS plans to prepare and file the necessary financial statements, including those affected by previous restatements, for the relevant periods. However, there is uncertainty regarding the timeline for completing these filings and whether they will meet the extension granted by the Hearings Panel.
DZS Inc. is a global leader in access, optical, and AI-driven cloud software solutions, listed on the Nasdaq under the ticker symbol DZSI.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and results, subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect management's beliefs and assumptions as of the date hereof, but actual results may differ materially due to various factors and uncertainties. Readers are advised to refer to the Company's filings with the SEC for a discussion of risk factors that could cause actual results to differ.