DZS reported Q3 2021 revenue of $88.4 million, representing a sequential 6.9% increase, and a 5.9% decline compared with record revenue of $93.9 million reported in the third quarter of 2020. Adjusted Gross Margin was 36.8% and adjusted EBITDA was $5.1 million.
DZS said order growth continued at an elevated pace, increasing 47% year-over-year to $124.5 million. Year-to-date orders reached $369.5 million. Some other highlights:
- Revenue from the Americas region increased 3% sequentially and 62% year-over-year to $27.3 million for the third quarter of 2021.
- Revenue from the EMEA region increased 22% sequentially and 2% year-over-year to $20.4 million for the third quarter of 2021.
- Revenue from Asia represented 46% of total revenue in the third quarter of 2021, increasing 3% sequentially to $40.7 million, declining 28.6% year-over-year from an exceptionally strong third quarter of 2020.
- Broadband Connectivity revenue of $64.8 million in the third quarter of 2021 (73% of total revenue) increased 3.2% from $62.8 million in the second quarter of 2021 and 2.0% compared with $63.5 million in the third quarter of 2020.
- Mobile Transport revenue was $23.6 million in the third quarter of 2021 (27% of total revenue), an increase of 18.6% from $19.9 million in the second quarter of 2021 and a decrease from $30.5 million in the third quarter of 2020. The sequential increase was the result of increased sales in the Asia region associated with service provider 5G and O-RAN initiatives, while the year-over-year decline reflects a timing factor of volume deployments with several marquee customers.
- DZS also noted that as a result of 18 months of supply chain disruptions and increased prices from many of the industry’s leading semiconductor and component suppliers, it has begun to implement price increases.
- DZS recently announced an expanded contract manufacturing partnership with Jabil, and extended its strategic partnership with Broadcom.
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