DZS Inc.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the DCS Q2 2024 Financial Results Conference Call. At this time, all participants are in listen-only mode. After this speaker's presentation, there will be a question and answer session. At this time, I would like to turn the conference over to Mr. Jeff Burt, SVP Marketing and Investor Relations. Sir, please begin.

Thank you, Demi, and welcome to the DZS conference call to discuss Q2 2024 financial results. Joining me today are DZS President and CEO Charlie Vogt and CFO Missy Kowecki. During our call, we will provide projections and other forward-looking statements based on our current expectations regarding future events or the future financial performance of the company. Such 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 the most recent 10Q and 10K reports, and the forward-looking statement section of our Tuesday, September 3rd press release. These documents identify important risk factors that can cause actual results to differ materially from those contained in our projections or forward-looking statements. Please note that unless otherwise indicated, the financial metrics we provide to you in this call will include those determined on a non-GAAP basis. These metrics, together with corresponding GAAP numbers and a reconciliation to GAAP, were contained in the press release issued on Tuesday, September 3rd, which we have posted to our website and filed with the SEC on Form 8K. We will also discuss historical, financial, and other statistical information regarding our business and operations. and some of this information is included in the press release. I will now turn the call over to Charlie.

Thank you, Jeff. Good morning, and thank you for joining us today. I'm pleased to share that we have now filed our restated and delayed periodic reports, including NETCOM's two-year audited financials and the DZS and NETCOM pro forma financial analysis as of June 30, 2024. This means that we are now current with our required SEC periodic report filings. We understand that many customers, suppliers, and shareholders are disappointed with how long the restatement process has taken. The restatement process required all parties involved to be thorough, definitive, and complete. As a multinational global business with tens of thousands of orders, shipments, and revenue transactions, Our finance and external independent audit firm took the necessary steps and time required to ensure this process was thorough and complete. To provide a more detailed timeline, our finance leadership team self-discovered a revenue recognition matter in June of 2023 associated with two customers for which we recorded revenue in Q1 of 2023. The main portion of the Audit Committee's independent investigation in connection with the restatement was substantially complete in early 2024. We then began a thorough independent auditor RFP process and ultimately selected BDO as our new independent auditor in March of 2024. Over the next five months, our finance team, Audit Committee, and independent audit partner worked diligently and collaboratively to complete 2022, 2023, and the first half of 2024's quarterly and annual reports, including the Investiture of Asia and our recently acquired NetCom. As a result of the various financial work streams and a compressed timeline, we were unable to file the required filings by the NASDAQ required date, appreciating that our number one priority from the beginning of this process was to ensure that we followed a thorough and appropriate process. With our SEC periodic reports complete and current, and while it's our goal to relist on the NASDAQ, our number one priority remains delivering for customers, gaining the synergies from our newly acquired Netcom business and converting $75 million of paid inventory to cash. Throughout this process, our customers, systems integrators, suppliers, and manufacturing partners have been incredibly supportive. We value our partner alignment and support, and together we are focused on creating incremental momentum with the innovation that spans our networking and connectivity solutions. Following Misty's remarks regarding our financials, I will share more specifics about the investments and advancements we have made over the past 18 months, including the divestiture of our former Asia business, and most recently, our acquisition of Netcom. I will also provide our insights on the broader market and our outlook for the second half of 2024. Misty?