DZS Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the DCS Third Quarter 2020 Earnings Conference Call. At this time, all participant lines are in listen-only mode, so if you require operator assistance, please press star, then zero. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, then one. Please be advised that today's conference may be recorded. I'd now like to hand the conference over to your host today, Mr. Ted Moreau, Vice President, Investor Relations. Please go ahead.

Thank you, Liz. Welcome to DZS's third quarter 2020 earnings conference call. Before beginning, I would like to comment it has been fun working with the management team since I joined DZS two months ago. This is an exciting time for the company as we position the business to take advantage of a number of growth opportunities we see in the coming years. This is all outlined in our stockholder letter published last night to the investor relations section of our website at DZSI.com. I look forward to interacting with our analysts shareholders, and prospective shareholders. Joining me today are President and CEO Charlie Vogt, CFO Tom Cancro, and CTO Andrew Bender. I would now like to provide the DZS Safe Harbor Statement. During this call, we will provide projections and other forward-looking statements regarding future events or the future financial performance of the company. The company cautions you that such statements are only current expectations and actual results or actual events or results may differ materially. Please refer to documents that the company files with the SEC, including its most recent 10Q and 10K reports and the forward-looking statement section of the letter to stockholders that was filed on a form 8K, as well as being available on the investor relations section of our website. These documents identify important risk factors that could cause actual results to differ materially, from those contained in the company's projections or forward-looking statements. 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 the letter to stockholders. So with that, I will now turn the call over to Charlie.

Thanks, Ted, and welcome, investors and guests. and especially our West Coast attendees for getting up early with us this morning. Following the market closed yesterday, we released our inaugural quarterly stockholder letter highlighting our performance for the quarter ending September 30th. Our quarterly stockholder letter provided an overview of our alignment with today's market trends, as well as our regional expansion plans, government-sponsored programs such as the United States Secure Trusted Communications Act, and the Rural Digital Opportunity Fund. We also profiled the enhancements we have made regarding our new leadership team, as well as a broader overview of where our products and solutions are being deployed within fixed mobile and enterprise networks. As Ted mentioned, our Chief Financial Officer, Ted Cancro, and our Chief Technology Officer, Andrew Bender, who recently joined DZS from VMware, are here today with me to expand on topics of interest, as well as answer any questions you may have that was represented in our stockholder letter. Closing out my first quarter, I'm thrilled to report all-time record revenue for the quarter, which was led by growing demand for our next-generation mobile transport solutions, as well as continued demand for our fiber-based broadband access and customer premise solutions. We had an exceptional top-line quarter, delivering 33% revenue growth when compared to Q2 and 31% compared to the same period a year ago. I want to recognize and applaud our employees and partners for achieving this outstanding milestone, especially in light of the ongoing global pandemic, which has impacted component shortages, customer evaluation, trials, and deployments. Before I open the call to questions, I want to amplify three key themes represented in the stockholder letter. First is our expansion into North America, Latin America, and India, leveraging our fiber-rich portfolio of broadband access solutions and next-generation mobile network transport solutions, which are being deployed in volume in the world's first open RAN network. Second is our skilled and agile research and development team that spans both fixed and mobile domains and our follow the sun geographic capabilities across the United States, Germany, South Korea, Vietnam, and India. And finally, the more than 30 new employees, including executive management team members, as well as key leaders spanning product, engineering, supply chain, sales, marketing, and finance, that have joined DZS since my appointment in early August. Over the past three months, we have made significant progress integrating former DAZN, Zone, and KeyMile, creating a one DZS brand and culture. We have rationalized and accelerated our commitment towards unified technology roadmaps and aligned our employees and partners with a vision and strategy to capture market share in the burgeoning 5G, fiber to the premise, and connected home and enterprise market segments. With that, I'll turn things back over to the moderator for questions.