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Share Name | Share Symbol | Market | Type |
---|---|---|---|
DZS Inc | NASDAQ:DZSI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.065 | 6.50% | 1.065 | 0.311 | 1.80 | 1.07 | 0.9801 | 1.01 | 174,629 | 05:00:08 |
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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22-3509099
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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7195 Oakport Street
Oakland, California
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94621
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(Address of principal executive offices)
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(Zip code)
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Large accelerated filer
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¨
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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x
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Emerging growth company
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¨
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Page
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PART I. FINANCIAL INFORMATION
|
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Item 1.
|
||
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Item 2.
|
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Item 3.
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Item 4.
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||
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PART II. OTHER INFORMATION
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Item 1.
|
||
Item 1A.
|
||
Item 6.
|
||
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
20,028
|
|
|
$
|
17,475
|
|
Restricted cash
|
7,825
|
|
|
12,425
|
|
||
Accounts receivable - trade, net
|
|
|
|
||||
Third parties
|
58,880
|
|
|
48,257
|
|
||
Related parties
|
2,139
|
|
|
13,498
|
|
||
Other receivables
|
|
|
|
|
|||
Suppliers and others
|
28,097
|
|
|
12,494
|
|
||
Related parties
|
91
|
|
|
164
|
|
||
Inventories
|
45,457
|
|
|
25,344
|
|
||
Prepaid expenses and other current assets
|
12,256
|
|
|
3,652
|
|
||
Total current assets
|
174,773
|
|
|
133,309
|
|
||
Property and equipment, net
|
5,374
|
|
|
5,873
|
|
||
Goodwill
|
3,977
|
|
|
3,977
|
|
||
Intangible assets, net
|
5,933
|
|
|
6,785
|
|
||
Non-current deferred taxes
|
2,895
|
|
|
2,954
|
|
||
Long-term restricted cash
|
847
|
|
|
1,512
|
|
||
Other assets
|
1,400
|
|
|
4,717
|
|
||
Total assets
|
$
|
195,199
|
|
|
$
|
159,127
|
|
Liabilities, Stockholders’ Equity and Non-controlling Interest
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable - trade
|
|
|
|
||||
Third parties
|
$
|
52,943
|
|
|
$
|
31,441
|
|
Related parties
|
1,302
|
|
|
1,351
|
|
||
Short-term debts
|
|
|
|
|
|
||
Bank and trade facilities
|
34,171
|
|
|
19,790
|
|
||
Related party
|
3,148
|
|
|
—
|
|
||
Other payables
|
|
|
|
||||
Third parties
|
1,769
|
|
|
2,032
|
|
||
Related parties
|
1,859
|
|
|
1,956
|
|
||
Contract liabilities - current
|
2,394
|
|
|
3,279
|
|
||
Accrued and other liabilities
|
10,315
|
|
|
11,174
|
|
||
Total current liabilities
|
107,901
|
|
|
71,023
|
|
||
Long-term debts
|
|
|
|
||||
Bank and trade facilities
|
—
|
|
|
2,987
|
|
||
Related parties
|
5,000
|
|
|
6,800
|
|
||
Contract liabilities - non-current
|
1,851
|
|
|
1,883
|
|
||
Other long-term liabilities
|
2,677
|
|
|
2,667
|
|
||
Total liabilities
|
117,429
|
|
|
85,360
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
||||
Stockholders’ equity and non-controlling interest:
|
|
|
|
||||
Common stock, authorized 36,000 shares, 16,566 shares and 16,410 shares outstanding as of September 30, 2018 and December 31, 2017 at $0.001 par value
|
16
|
|
|
16
|
|
||
Additional paid-in capital
|
92,408
|
|
|
90,198
|
|
||
Accumulated other comprehensive income
|
5
|
|
|
1,871
|
|
||
Accumulated deficit
|
(15,190
|
)
|
|
(18,852
|
)
|
||
Total stockholders’ equity
|
77,239
|
|
|
73,233
|
|
||
Non-controlling interest
|
531
|
|
|
534
|
|
||
Total stockholders’ equity and non-controlling interest
|
77,770
|
|
|
73,767
|
|
||
Total liabilities, stockholders’ equity and non-controlling interest
|
$
|
195,199
|
|
|
$
|
159,127
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net revenue:
|
|
|
|
||||||||||||
Third parties
|
$
|
70,227
|
|
|
$
|
60,513
|
|
|
$
|
203,317
|
|
|
$
|
150,834
|
|
Related parties
|
1,687
|
|
|
5,925
|
|
|
4,358
|
|
|
27,657
|
|
||||
Total net revenue
|
71,914
|
|
|
66,438
|
|
|
207,675
|
|
|
178,491
|
|
||||
Cost of revenue:
|
|
|
|
|
|
|
|
||||||||
Products and services - third parties
|
46,565
|
|
|
38,301
|
|
|
134,234
|
|
|
95,103
|
|
||||
Products and services - related parties
|
1,765
|
|
|
5,569
|
|
|
4,651
|
|
|
22,851
|
|
||||
Amortization of intangible assets
|
153
|
|
|
153
|
|
|
459
|
|
|
459
|
|
||||
Total cost of revenue
|
48,483
|
|
|
44,023
|
|
|
139,344
|
|
|
118,413
|
|
||||
Gross profit
|
23,431
|
|
|
22,415
|
|
|
68,331
|
|
|
60,078
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and product development
|
8,655
|
|
|
8,939
|
|
|
26,346
|
|
|
27,462
|
|
||||
Selling, marketing, general and administrative
|
11,106
|
|
|
11,661
|
|
|
35,212
|
|
|
33,096
|
|
||||
Amortization of intangible assets
|
131
|
|
|
154
|
|
|
393
|
|
|
1,191
|
|
||||
Total operating expenses
|
19,892
|
|
|
20,754
|
|
|
61,951
|
|
|
61,749
|
|
||||
Operating income (loss)
|
3,539
|
|
|
1,661
|
|
|
6,380
|
|
|
(1,671
|
)
|
||||
Interest income
|
42
|
|
|
36
|
|
|
203
|
|
|
82
|
|
||||
Interest expense
|
(447
|
)
|
|
(263
|
)
|
|
(1,330
|
)
|
|
(793
|
)
|
||||
Other income (expense), net
|
(572
|
)
|
|
60
|
|
|
(859
|
)
|
|
43
|
|
||||
Income (loss) before income taxes
|
2,562
|
|
|
1,494
|
|
|
4,394
|
|
|
(2,339
|
)
|
||||
Income tax expense
|
735
|
|
|
107
|
|
|
1,071
|
|
|
646
|
|
||||
Net income (loss)
|
1,827
|
|
|
1,387
|
|
|
3,323
|
|
|
(2,985
|
)
|
||||
Net income (loss) attributable to non-controlling interest
|
29
|
|
|
(12
|
)
|
|
2
|
|
|
172
|
|
||||
Net income (loss) attributable to DASAN Zhone Solutions, Inc.
|
$
|
1,798
|
|
|
$
|
1,399
|
|
|
$
|
3,321
|
|
|
$
|
(3,157
|
)
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
391
|
|
|
(284
|
)
|
|
(1,839
|
)
|
|
1,782
|
|
||||
Comprehensive income (loss)
|
2,218
|
|
|
1,103
|
|
|
1,484
|
|
|
(1,203
|
)
|
||||
Comprehensive income (loss) attributable to non-controlling interest
|
16
|
|
|
(14
|
)
|
|
(3
|
)
|
|
191
|
|
||||
Comprehensive income (loss) attributable to DASAN Zhone Solutions, Inc.
|
$
|
2,202
|
|
|
$
|
1,117
|
|
|
$
|
1,487
|
|
|
$
|
(1,394
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to DASAN Zhone Solutions, Inc.
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.20
|
|
|
$
|
(0.19
|
)
|
Diluted
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.20
|
|
|
$
|
(0.19
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding used to compute basic net income (loss) per share
|
16,683
|
|
|
16,382
|
|
|
16,425
|
|
|
16,380
|
|
||||
Weighted average shares outstanding used to compute diluted net income (loss) per share
|
16,891
|
|
|
16,382
|
|
|
16,640
|
|
|
16,380
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
3,323
|
|
|
$
|
(2,985
|
)
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
2,033
|
|
|
3,105
|
|
||
Stock-based compensation
|
1,357
|
|
|
670
|
|
||
Valuation allowance on inventories
|
753
|
|
|
1,003
|
|
||
Unrealized loss (gain) on foreign currency transactions
|
226
|
|
|
(185
|
)
|
||
Deferred taxes
|
(56
|
)
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(14,536
|
)
|
|
(2,948
|
)
|
||
Inventories
|
(21,967
|
)
|
|
(1,581
|
)
|
||
Prepaid expenses and other assets
|
(7,942
|
)
|
|
(101
|
)
|
||
Accounts payable
|
24,790
|
|
|
6,713
|
|
||
Accrued and other liabilities
|
(3,695
|
)
|
|
(4,314
|
)
|
||
Net cash used in operating activities
|
(15,714
|
)
|
|
(623
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Proceeds from sale of short-term investments
|
—
|
|
|
1,463
|
|
||
Purchase of short-term investments
|
—
|
|
|
(430
|
)
|
||
Proceeds from disposal of property and equipment and other assets
|
1
|
|
|
6
|
|
||
Purchase of property and equipment
|
(753
|
)
|
|
(840
|
)
|
||
Purchase of intangible asset
|
—
|
|
|
(72
|
)
|
||
Net cash (used in) provided by investing activities
|
(752
|
)
|
|
127
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from short-term borrowings from bank and trade facilities
|
61,419
|
|
|
13,778
|
|
||
Proceeds from short-term borrowings from related party
|
6,098
|
|
|
—
|
|
||
Repayments of borrowings from bank and trade facilities
|
(48,739
|
)
|
|
(15,627
|
)
|
||
Repayments of borrowings related party
|
(4,460
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock
|
853
|
|
|
28
|
|
||
Net cash provided by (used in) financing activities
|
15,171
|
|
|
(1,821
|
)
|
||
Effect of exchange rate changes on cash and restricted cash
|
(1,417
|
)
|
|
977
|
|
||
Net decrease in cash and cash equivalents
|
(2,712
|
)
|
|
(1,340
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
31,412
|
|
|
24,543
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
$
|
28,700
|
|
|
$
|
23,203
|
|
Reconciliation of cash, cash equivalents and restricted cash to statement of financial position
|
|
|
|
||||
Cash and equivalents
|
$
|
20,028
|
|
|
$
|
10,145
|
|
Restricted cash
|
7,825
|
|
|
13,058
|
|
||
Long-term restricted cash
|
847
|
|
|
—
|
|
||
Cash, cash equivalents and restricted cash in statement of financial position
|
$
|
28,700
|
|
|
$
|
23,203
|
|
(1)
|
Organization and Summary of Significant Accounting Policies
|
(a)
|
Description of Business
|
(b)
|
Risks and Uncertainties
|
•
|
increasing its vulnerability to adverse economic conditions in its industry or the economy in general;
|
•
|
requiring substantial amounts of cash to be used for debt servicing, rather than other purposes, including operations;
|
•
|
limiting its ability to plan for, or react to, changes in its business and industry;
|
•
|
limiting its ability to complete the Keymile acquisition; and
|
•
|
influencing investor and customer perceptions about its financial stability and limiting its ability to obtain financing or acquire customers.
|
(c)
|
Reclassifications
|
(d)
|
Basis of Presentation
|
(e)
|
Reverse Stock Split
|
(f)
|
Concentration of Risk
|
(g)
|
Recent Accounting Pronouncements
|
•
|
Topic 606 requires an allocation of revenue to performance obligations identified within an arrangement. Topic 605 restricted the allocation of revenue that is contingent on future deliverables to current deliverables, however, Topic 606 removes this restriction, to the extent that the future deliverables represent performance obligations that are distinct. Under Topic 606, the nature of the performance obligations identified within a contract impacts the allocation of the transaction price between deliverables.
|
•
|
Some of the Company’s contracts include customer acceptance terms, which provide protection to the customer by allowing it to either cancel a contract or force the Company to take corrective actions if products or services do not meet the requirements in the contract. Under Topic 606, customer acceptance that is considered a “formality”, would result in revenue recognized when control of the product or service
|
|
As of January 1, 2018
|
||||||||||
|
Balance after adoption of ASC 606
|
|
Adjustments
|
|
Balance without adoption of ASC 606
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
62,099
|
|
|
$
|
344
|
|
(1)
|
$
|
61,755
|
|
Inventories
|
25,239
|
|
|
(105
|
)
|
(2)
|
25,344
|
|
|||
Liabilities
|
|
|
|
|
|
|
|||||
Contract liabilities - current
|
3,038
|
|
|
(241
|
)
|
(2)
|
3,279
|
|
|||
Accrued and other liabilities
|
11,518
|
|
|
344
|
|
(1)
|
11,174
|
|
|||
Contract liabilities - non-current
|
1,711
|
|
|
(172
|
)
|
(2)
|
1,883
|
|
|||
Stockholders’ equity
|
|
|
|
|
|
||||||
Accumulated deficit
|
(18,544
|
)
|
|
308
|
|
|
(18,852
|
)
|
|
As of September 30, 2018
|
|||||||||||
|
As reported
|
|
Adjustments
|
|
|
Balance without adoption of ASC 606
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
$
|
61,019
|
|
|
$
|
(5,356
|
)
|
(1)
|
(3)
|
$
|
66,375
|
|
Inventories
|
45,457
|
|
|
62
|
|
(2)
|
|
45,395
|
|
|||
Prepaid expenses and other current assets
|
12,256
|
|
|
5,984
|
|
(3)
|
|
6,272
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Contract liabilities - current
|
2,394
|
|
|
(75
|
)
|
(2)
|
|
2,469
|
|
|||
Accrued and other liabilities
|
10,315
|
|
|
628
|
|
(1)
|
|
9,687
|
|
|||
Contract liabilities - non-current
|
1,851
|
|
|
36
|
|
(2)
|
|
1,815
|
|
|||
Stockholders’ equity
|
|
|
|
|
|
|
||||||
Accumulated deficit
|
(15,190
|
)
|
|
101
|
|
|
|
(15,291
|
)
|
|
Three Months Ended September 30, 2018
|
||||||||||
|
As reported
|
|
Adjustments
|
|
Balance without adoption of ASC 606
|
||||||
Net revenue
|
$
|
71,914
|
|
|
$
|
386
|
|
|
$
|
71,528
|
|
Cost of revenue - products and services
|
48,483
|
|
|
5
|
|
|
48,478
|
|
|||
Gross profit
|
23,431
|
|
|
381
|
|
|
23,050
|
|
|||
Income tax expense
|
(735
|
)
|
|
—
|
|
|
(735
|
)
|
|||
Net income
|
1,827
|
|
|
381
|
|
|
1,446
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||
|
As reported
|
|
Adjustments
|
|
Balance without adoption of ASC 606
|
||||||
Net revenue
|
$
|
207,675
|
|
|
$
|
39
|
|
|
$
|
207,636
|
|
Cost of revenue - products and services
|
139,344
|
|
|
(62
|
)
|
|
139,406
|
|
|||
Gross profit
|
68,331
|
|
|
101
|
|
|
68,230
|
|
|||
Income tax expense
|
(1,071
|
)
|
|
—
|
|
|
(1,071
|
)
|
|||
Net income
|
3,323
|
|
|
101
|
|
|
3,222
|
|
Item
|
|
Balance Sheet Location
|
|
September 30,
2018 |
|
January 1,
2018 |
|
$ change
|
|
% change
|
|||||||
Contract assets
|
|
Prepaid expenses and other current assets
|
|
$
|
5,984
|
|
|
$
|
—
|
|
|
$
|
5,984
|
|
|
—
|
|
Contract liabilities - current
|
|
Contract liabilities - current
|
|
2,394
|
|
|
3,038
|
|
|
(644
|
)
|
|
(21
|
)%
|
|||
Contract liabilities - non-current
|
|
Contract liabilities - non-current
|
|
1,851
|
|
|
1,711
|
|
|
140
|
|
|
8
|
%
|
(2)
|
Fair Value Measurement
|
Level 1 –
|
Inputs are quoted prices in active markets for identical assets or liabilities.
|
Level 2 –
|
Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
|
Level 3 –
|
Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.
|
(3)
|
Cash, Cash Equivalents and Restricted Cash
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Cash and cash equivalents
|
$
|
20,028
|
|
|
$
|
17,475
|
|
Restricted cash
|
7,825
|
|
|
12,425
|
|
||
Long-term restricted cash
|
847
|
|
|
1,512
|
|
||
Cash, cash equivalents and restricted cash
|
$
|
28,700
|
|
|
$
|
31,412
|
|
(4)
|
Balance Sheet Detail
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Gross accounts receivable
|
$
|
61,324
|
|
|
$
|
63,446
|
|
Allowance for doubtful accounts
|
(305
|
)
|
|
(922
|
)
|
||
Allowance for sales returns
|
—
|
|
(1)
|
(769
|
)
|
||
Total allowances
|
(305
|
)
|
|
(1,691
|
)
|
||
Accounts receivable - trade, net
|
$
|
61,019
|
|
|
$
|
61,755
|
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Raw materials
|
$
|
19,227
|
|
|
$
|
12,671
|
|
Work in process
|
3,474
|
|
|
2,150
|
|
||
Finished goods
|
22,756
|
|
|
10,523
|
|
||
Total inventories
|
$
|
45,457
|
|
|
$
|
25,344
|
|
(5)
|
Property and Equipment
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Furniture and fixtures
|
$
|
22,495
|
|
|
$
|
22,988
|
|
Machinery and equipment
|
5,577
|
|
|
5,455
|
|
||
Leasehold improvements
|
3,619
|
|
|
3,647
|
|
||
Computers and software
|
728
|
|
|
621
|
|
||
Others
|
1,034
|
|
|
1,007
|
|
||
|
33,453
|
|
|
33,718
|
|
||
Less: accumulated depreciation and amortization
|
(27,872
|
)
|
|
(27,584
|
)
|
||
Less: government grants
|
(207
|
)
|
|
(261
|
)
|
||
Property and equipment, net
|
$
|
5,374
|
|
|
$
|
5,873
|
|
(6)
|
Goodwill and Intangible Assets
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
Beginning balance
|
$
|
3,977
|
|
|
$
|
3,977
|
|
Less: accumulated impairment
|
—
|
|
|
—
|
|
||
Ending balance
|
$
|
3,977
|
|
|
$
|
3,977
|
|
|
September 30, 2018
|
||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Developed technology
|
$
|
3,060
|
|
|
$
|
(1,276
|
)
|
|
$
|
1,784
|
|
Customer relationships
|
5,240
|
|
|
(1,091
|
)
|
|
4,149
|
|
|||
Backlog
|
2,179
|
|
|
(2,179
|
)
|
|
—
|
|
|||
Total intangible assets
|
$
|
10,479
|
|
|
$
|
(4,546
|
)
|
|
$
|
5,933
|
|
|
December 31, 2017
|
||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
||||||
Developed technology
|
$
|
3,060
|
|
|
$
|
(816
|
)
|
|
$
|
2,244
|
|
Customer relationships
|
5,240
|
|
|
(699
|
)
|
|
4,541
|
|
|||
Backlog
|
2,179
|
|
|
(2,179
|
)
|
|
—
|
|
|||
Total intangible assets
|
$
|
10,479
|
|
|
$
|
(3,694
|
)
|
|
$
|
6,785
|
|
(7)
|
Debts
|
|
|
|
|
As of September 30, 2018
|
||||||
|
|
|
|
Maturity Date
|
Denomination
|
Interest rate (%)
|
|
Amount
|
||
Industrial Bank of Korea
|
|
Credit facility
|
|
10/2/2018 - 2/4/2019
|
USD
|
3.81~4.03
|
|
$
|
4,229
|
|
Industrial Bank of Korea
|
|
Credit facility
|
|
10/10/2018 - 11/12/2018
|
USD
|
3.81~3.84
|
|
1,834
|
|
|
Industrial Bank of Korea
|
|
Trade finance
|
|
10/15/2018
|
USD
|
6.82
|
|
651
|
|
|
Shinhan Bank
|
|
General loan
|
|
3/30/2019
|
KRW
|
6.06
|
|
2,876
|
|
|
NongHyup Bank
|
|
Credit facility
|
|
11/19/2018 - 3/4/2019
|
USD
|
3.95~4.17
|
|
852
|
|
|
The Export-Import Bank of Korea
|
|
Export development loan
|
|
12/29/2018
|
KRW
|
3.28
|
|
6,471
|
|
|
The Export-Import Bank of Korea
|
|
Import development loan
|
|
11/14/2018
|
USD
|
4.02
|
|
850
|
|
|
Korea Development Bank
|
|
General loan
|
|
8/8/2019
|
KRW
|
3.48
|
|
4,494
|
|
|
LGUPlus
|
|
General loan
|
|
6/17/2019
|
KRW
|
0
|
|
1,797
|
|
|
JECC Factoring
|
|
AR Factoring
|
|
10/26/2018 - 12/25/2018
|
JPY
|
1.58
|
|
3,236
|
|
|
Shoko Chukin Bank
|
|
General loan
|
|
6/28/2019
|
JPY
|
1.33
|
|
881
|
|
|
|
|
|
|
|
|
|
|
$
|
28,171
|
|
|
|
|
|
As of December 31, 2017
|
||||||
|
|
|
|
Maturity Date
|
Denomination
|
Interest rate (%)
|
|
Amount
|
||
Industrial Bank of Korea
|
|
Credit facility
|
|
1/2/2018 - 5/2/2018
|
USD
|
2.89 - 3.26
|
|
$
|
2,328
|
|
Industrial Bank of Korea
|
|
Trade Finance
|
|
1/2/2018 - 5/23/2018
|
USD
|
4.47 - 5.97
|
|
2,401
|
|
|
Shinhan Bank
|
|
General loan
|
|
3/30/2019
|
KRW
|
5.91
|
|
2,987
|
|
|
Shinhan Bank
|
|
Trade finance
|
|
2/19/2018- 3/26/2018
|
KRW
|
3.90 - 4.14
|
|
3,050
|
|
|
NongHyup Bank (Korea)
|
|
Credit facility
|
|
1/8/2018- 6/18/2018
|
USD
|
2.83 - 3.42
|
|
860
|
|
|
The Export-Import Bank of Korea
|
|
Export development loan
|
|
2/13/2018 & 6/29/2018
|
KRW
|
3.20 - 3.28
|
|
7,570
|
|
|
Mitsubishi Bank (Japan)
|
|
AR factoring
|
|
1/31/2018 - 5/31/2018
|
JPY
|
1.58
|
|
1,872
|
|
|
Shinhan Bank (India)
|
|
General loan
|
|
4/24/2018 - 11/12/2018
|
INR
|
8.70 - 8.90
|
|
1,709
|
|
|
|
|
|
|
|
|
|
|
$
|
22,777
|
|
(8)
|
Non-Controlling Interests
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
2017
|
||||
Beginning non-controlling interests
|
|
$
|
534
|
|
|
$
|
416
|
|
Net income (loss) attributable to non-controlling interests
|
|
2
|
|
|
172
|
|
||
Foreign currency translation adjustments
|
|
(5
|
)
|
|
19
|
|
||
Ending non-controlling interests
|
|
$
|
531
|
|
|
$
|
607
|
|
(9)
|
Related-Party Transactions
|
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
Counterparty
|
|
DNI ownership Interest
|
|
Sales
|
|
Cost of revenue
|
|
Research and product development
|
|
Selling, marketing,
general and administrative
|
|
Interest expense
|
|
Other expenses
|
||||||||||||
DNI (Parent Company)
|
|
N/A
|
|
$
|
1,472
|
|
|
$
|
1,270
|
|
|
$
|
—
|
|
|
$
|
784
|
|
|
$
|
112
|
|
|
$
|
89
|
|
Tomato Soft Ltd.
|
|
100%
|
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Tomato Soft (Xi'an) Ltd.
|
|
100%
|
|
—
|
|
|
—
|
|
|
119
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Chasan Networks Co., Ltd.
|
|
100%
|
|
—
|
|
|
260
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Handysoft, Inc.
|
|
17.63%
|
|
215
|
|
|
208
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
$
|
1,687
|
|
|
$
|
1,765
|
|
|
$
|
140
|
|
|
$
|
786
|
|
|
$
|
112
|
|
|
$
|
89
|
|
|
|
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||
Counterparty
|
|
DNI ownership Interest
|
|
Sales
|
|
Cost of revenue
|
|
Research and product development
|
|
Selling, marketing,
general and administrative |
|
Other expenses
|
||||||||||
DNI (Parent Company)
|
|
N/A
|
|
$
|
3,976
|
|
|
$
|
3,604
|
|
|
$
|
—
|
|
|
$
|
1,291
|
|
|
$
|
51
|
|
Chasan Networks Co., Ltd.
|
|
100%
|
|
—
|
|
|
257
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|||||
Dasan France
|
|
100%
|
|
662
|
|
|
576
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|||||
Dasan India Private Limited
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|||||
D-Mobile
|
|
100%
|
|
1,233
|
|
|
1,077
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|||||
HandySoft, Inc.
|
|
17.64%
|
|
54
|
|
|
12
|
|
|
—
|
|
|
6
|
|
|
4
|
|
|||||
Tomato Soft Ltd.
|
|
100%
|
|
—
|
|
|
43
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|||||
Tomato Soft (Xi'an) Ltd.
|
|
100%
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
$
|
5,925
|
|
|
$
|
5,569
|
|
|
$
|
272
|
|
|
$
|
1,532
|
|
|
$
|
55
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
Counterparty
|
|
DNI ownership Interest
|
|
Sales
|
|
Cost of revenue
|
|
Research and product development
|
|
Selling, marketing,
general and administrative
|
|
Interest expense
|
|
Other expenses
|
||||||||||||
DNI (Parent Company)
|
|
N/A
|
|
$
|
3,683
|
|
|
$
|
3,143
|
|
|
$
|
—
|
|
|
$
|
2,950
|
|
|
$
|
338
|
|
|
$
|
234
|
|
Tomato Soft Ltd.
|
|
100%
|
|
—
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Tomato Soft (Xi'an) Ltd.
|
|
100%
|
|
—
|
|
|
10
|
|
|
396
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Chasan Networks Co., Ltd.
|
|
100%
|
|
—
|
|
|
880
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dasan France
|
|
100%
|
|
202
|
|
|
177
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
HandySoft, Inc.
|
|
17.63%
|
|
473
|
|
|
357
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
$
|
4,358
|
|
|
$
|
4,651
|
|
|
$
|
453
|
|
|
$
|
2,954
|
|
|
$
|
338
|
|
|
$
|
234
|
|
|
|
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||
Counterparty
|
|
DNI ownership Interest
|
|
Sales
|
|
Cost of revenue
|
|
Research and product development
|
|
Selling, marketing,
general and administrative |
|
Other expenses
|
||||||||||
DNI (Parent Company)
|
|
N/A
|
|
$
|
16,608
|
|
|
$
|
14,020
|
|
|
$
|
—
|
|
|
$
|
3,491
|
|
|
$
|
171
|
|
Chasan Networks Co., Ltd.
|
|
100%
|
|
—
|
|
|
578
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|||||
Dasan France
|
|
100%
|
|
1,612
|
|
|
1,512
|
|
|
—
|
|
|
383
|
|
|
—
|
|
|||||
Dasan India Private Limited
(1)
|
|
100%
|
|
6,287
|
|
|
4,783
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|||||
D-Mobile
(1)
|
|
100%
|
|
3,054
|
|
|
1,831
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|||||
Fine Solution
|
|
100%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|||||
HandySoft, Inc.
|
|
17.64%
|
|
88
|
|
|
23
|
|
|
—
|
|
|
6
|
|
|
4
|
|
|||||
J-Mobile Corporation
|
|
90.47%
|
|
8
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|||||
Tomato Soft Ltd.
|
|
100%
|
|
|
|
104
|
|
|
108
|
|
|
|
|
|
||||||||
Tomato Soft (Xi'an) Ltd.
|
|
100%
|
|
—
|
|
|
—
|
|
|
448
|
|
|
37
|
|
|
—
|
|
|||||
Solueta
|
|
27.21%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
|
|
|
|
$
|
27,657
|
|
|
$
|
22,851
|
|
|
$
|
635
|
|
|
$
|
4,401
|
|
|
$
|
178
|
|
(10)
|
Net Income (Loss) Per Share Attributable to DASAN Zhone Solutions, Inc.
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss) attributable to DASAN Zhone Solutions, Inc.
|
|
$
|
1,798
|
|
|
$
|
1,399
|
|
|
$
|
3,321
|
|
|
$
|
(3,157
|
)
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
16,683
|
|
|
16,382
|
|
|
16,425
|
|
|
16,380
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options, restricted stock units and share awards
|
|
208
|
|
|
—
|
|
|
215
|
|
|
—
|
|
||||
Diluted
|
|
16,891
|
|
|
16,382
|
|
|
16,640
|
|
|
16,380
|
|
||||
Net income (loss) per share attributable to DASAN Zhone Solutions, Inc.:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.20
|
|
|
$
|
(0.19
|
)
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
0.09
|
|
|
$
|
0.20
|
|
|
$
|
(0.19
|
)
|
(11)
|
Commitments and Contingencies
|
|
Operating Leases
|
||
Year ending December 31:
|
|
||
2018 (remainder of the year)
|
$
|
1,053
|
|
2019
|
4,088
|
|
|
2020
|
2,998
|
|
|
2021
|
2,590
|
|
|
2022
|
2,664
|
|
|
Thereafter
|
8,423
|
|
|
Total minimum lease payments
|
$
|
21,816
|
|
|
Nine Months Ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
Beginning balance
|
$
|
931
|
|
|
$
|
878
|
|
Charged to cost of revenue
|
1,022
|
|
|
126
|
|
||
Claims and settlements
|
(598
|
)
|
|
(195
|
)
|
||
Foreign exchange impact
|
6
|
|
|
14
|
|
||
Ending balance
|
$
|
1,361
|
|
|
$
|
823
|
|
Guarantor
|
|
Amount Guaranteed (in thousands)
|
|
Description of Obligations Guaranteed
|
||
DNI
|
|
$
|
3,451
|
|
|
Borrowings from Shinhan Bank
|
DNI
|
|
1,726
|
|
|
Purchasing Card from Shinhan Bank
|
|
DNI
|
|
10,730
|
|
|
LC from Industrial Bank of Korea
|
|
DNI
|
|
2,157
|
|
|
Purchasing Card from Industrial Bank of Korea
|
|
DNI
|
|
6,000
|
|
|
LC from NongHyup Bank
|
|
DNI
|
|
6,170
|
|
|
Borrowings from Export-Import Bank of Korea
|
|
DNI
|
|
6,000
|
|
|
LC from KookMin Bank
|
|
DNI
|
|
5,392
|
|
|
Borrowings from Korea Development Bank
|
|
DNI
|
|
8,400
|
|
|
LC from Korea Development Bank
|
|
Industrial Bank of Korea
|
|
6,486
|
|
|
Borrowings and letter of credit
|
|
NongHyup Bank
|
|
3,497
|
|
|
Borrowings and letter of credit
|
|
Kookmin Bank
|
|
304
|
|
|
Letter of credit
|
|
Korea Development Bank
|
|
894
|
|
|
Letter of credit
|
|
Shinhan Bank
|
|
933
|
|
|
Purchasing Card
|
|
Industrial Bank of Korea
|
|
4,075
|
|
|
Performance bonds
|
|
State Bank of India
|
|
34
|
|
|
Performance bonds
|
|
Seoul Guarantee Insurance Co.
|
|
4,232
|
|
|
Performance payment guarantee*
|
|
|
|
$
|
70,481
|
|
|
|
(12)
|
Stock Option and Other Benefit Plans
|
(13)
|
Enterprise-Wide Information
|
|
Three Months Ended
|
|
Nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue by geography:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
11,125
|
|
|
$
|
13,068
|
|
|
$
|
41,373
|
|
|
$
|
37,176
|
|
Canada
|
1,131
|
|
|
1,498
|
|
|
3,344
|
|
|
4,112
|
|
||||
Total North America
|
12,256
|
|
|
14,566
|
|
|
44,717
|
|
|
41,288
|
|
||||
Latin America
|
6,841
|
|
|
7,480
|
|
|
21,713
|
|
|
19,425
|
|
||||
Europe, Middle East, Africa
|
10,425
|
|
|
7,378
|
|
|
27,264
|
|
|
19,134
|
|
||||
Korea
|
19,609
|
|
|
20,520
|
|
|
50,844
|
|
|
69,032
|
|
||||
Other Asia Pacific
|
22,783
|
|
|
16,494
|
|
|
63,137
|
|
|
29,612
|
|
||||
Total International
|
59,658
|
|
|
51,872
|
|
|
162,958
|
|
|
137,203
|
|
||||
Total
|
$
|
71,914
|
|
|
$
|
66,438
|
|
|
$
|
207,675
|
|
|
$
|
178,491
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine months ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue by classification:
|
|
|
|
|
|
|
|
||||||||
Products
|
$
|
68,787
|
|
|
$
|
63,257
|
|
|
$
|
198,830
|
|
|
$
|
169,831
|
|
Services
|
3,127
|
|
|
3,181
|
|
|
8,845
|
|
|
8,660
|
|
||||
Total
|
$
|
71,914
|
|
|
$
|
66,438
|
|
|
$
|
207,675
|
|
|
$
|
178,491
|
|
|
As of September 30,
2018
|
|
As of December 31,
2017
|
||||
United States
|
$
|
3,131
|
|
|
$
|
3,393
|
|
Korea
|
1,441
|
|
|
1,633
|
|
||
Other Asia Pacific
|
802
|
|
|
847
|
|
||
|
$
|
5,374
|
|
|
$
|
5,873
|
|
(14)
|
Income Taxes
|
(15)
|
Subsequent Events
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Net revenue:
|
|
|
|
|
|
|
|
||||
Third parties
|
98
|
%
|
|
91
|
%
|
|
98
|
%
|
|
85
|
%
|
Related parties
|
2
|
%
|
|
9
|
%
|
|
2
|
%
|
|
15
|
%
|
Total net revenue
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Cost of revenue:
|
|
|
|
|
|
|
|
||||
Products and services - third parties
|
65
|
%
|
|
58
|
%
|
|
65
|
%
|
|
53
|
%
|
Products and services - related parties
|
2
|
%
|
|
8
|
%
|
|
2
|
%
|
|
13
|
%
|
Amortization of intangible assets
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Total cost of revenue
|
67
|
%
|
|
66
|
%
|
|
67
|
%
|
|
66
|
%
|
Gross profit
|
33
|
%
|
|
34
|
%
|
|
33
|
%
|
|
34
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
||||
Research and product development
|
12
|
%
|
|
13
|
%
|
|
13
|
%
|
|
15
|
%
|
Selling, marketing, general and administrative
|
16
|
%
|
|
18
|
%
|
|
17
|
%
|
|
19
|
%
|
Amortization of intangible assets
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
1
|
%
|
Total operating expenses
|
28
|
%
|
|
31
|
%
|
|
30
|
%
|
|
35
|
%
|
Operating income (loss)
|
5
|
%
|
|
3
|
%
|
|
3
|
%
|
|
(1
|
)%
|
Interest income
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest expense
|
—
|
%
|
|
(1
|
)%
|
|
—
|
%
|
|
—
|
%
|
Other income, net
|
(1
|
)%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Income (loss) before income taxes
|
4
|
%
|
|
2
|
%
|
|
3
|
%
|
|
(1
|
)%
|
Income tax provision
|
1
|
%
|
|
—
|
%
|
|
1
|
%
|
|
—
|
%
|
Net income (loss)
|
3
|
%
|
|
2
|
%
|
|
2
|
%
|
|
(1
|
)%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
Increase/ (decrease)
|
|
% change
|
|
2018
|
|
2017
|
|
Increase
|
|
% change
|
|
||||||||||||||
Products
|
$
|
68.8
|
|
|
$
|
63.2
|
|
|
$
|
5.6
|
|
|
9
|
%
|
|
$
|
198.8
|
|
|
$
|
169.8
|
|
|
$
|
29.0
|
|
|
17
|
%
|
|
Services
|
3.1
|
|
|
3.2
|
|
|
(0.1
|
)
|
|
(3
|
)%
|
|
8.9
|
|
|
8.7
|
|
|
0.2
|
|
|
2
|
%
|
|
||||||
Total
|
$
|
71.9
|
|
|
$
|
66.4
|
|
|
$
|
5.5
|
|
|
8
|
%
|
|
$
|
207.7
|
|
|
$
|
178.5
|
|
|
$
|
29.2
|
|
|
16
|
%
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
Increase/(decrease)
|
|
% change
|
|
2018
|
|
2017
|
|
Increase/(decrease)
|
|
% change
|
||||||||||||||
Revenue by geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
United States
|
$
|
11.2
|
|
|
$
|
13.1
|
|
|
$
|
(1.9
|
)
|
|
(15
|
)%
|
|
$
|
41.4
|
|
|
$
|
37.2
|
|
|
$
|
4.2
|
|
|
11
|
%
|
Canada
|
1.1
|
|
|
1.5
|
|
|
(0.4
|
)
|
|
(27
|
)%
|
|
3.3
|
|
|
4.1
|
|
|
(0.8
|
)
|
|
(20
|
)%
|
||||||
Total North America
|
12.3
|
|
|
14.6
|
|
|
(2.3
|
)
|
|
(16
|
)%
|
|
44.7
|
|
|
41.3
|
|
|
3.4
|
|
|
8
|
%
|
||||||
Latin America
|
6.8
|
|
|
7.5
|
|
|
(0.7
|
)
|
|
(9
|
)%
|
|
21.7
|
|
|
19.5
|
|
|
2.2
|
|
|
11
|
%
|
||||||
Europe, Middle East, Africa (EMEA)
|
10.4
|
|
|
7.4
|
|
|
3.0
|
|
|
41
|
%
|
|
27.3
|
|
|
19.1
|
|
|
8.2
|
|
|
43
|
%
|
||||||
Korea
|
19.6
|
|
|
20.4
|
|
|
(0.8
|
)
|
|
(4
|
)%
|
|
50.9
|
|
|
69.0
|
|
|
(18.1
|
)
|
|
(26
|
)%
|
||||||
Other Asia Pacific
|
22.8
|
|
|
16.5
|
|
|
6.3
|
|
|
38
|
%
|
|
63.1
|
|
|
29.6
|
|
|
33.5
|
|
|
113
|
%
|
||||||
Total International
|
59.6
|
|
|
51.8
|
|
|
7.8
|
|
|
15
|
%
|
|
163.0
|
|
|
137.2
|
|
|
25.8
|
|
|
19
|
%
|
||||||
Total
|
$
|
71.9
|
|
|
$
|
66.4
|
|
|
$
|
5.5
|
|
|
8
|
%
|
|
$
|
207.7
|
|
|
$
|
178.5
|
|
|
$
|
29.2
|
|
|
16
|
%
|
•
|
Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual requirements;
|
•
|
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
|
•
|
Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debts;
|
•
|
although depreciation and amortization are non-cash expenses, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements;
|
•
|
non-cash compensation is and will remain a key element of our overall long-term incentive compensation programs and packages, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period; and
|
•
|
other companies in our industry may calculate Adjusted EBITDA and similar measures differently than we do, potentially limiting its usefulness as a comparative measure.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
1,827
|
|
|
$
|
1,387
|
|
|
$
|
3,323
|
|
|
$
|
(2,985
|
)
|
Add:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
405
|
|
|
227
|
|
|
1,127
|
|
|
711
|
|
||||
Income tax expense
|
735
|
|
|
107
|
|
|
1,071
|
|
|
646
|
|
||||
Depreciation and amortization
|
652
|
|
|
752
|
|
|
2,033
|
|
|
3,105
|
|
||||
Stock-based compensation
|
617
|
|
|
195
|
|
|
1,357
|
|
|
670
|
|
||||
Non-recurring merger and acquisition costs
|
139
|
|
|
—
|
|
|
139
|
|
|
—
|
|
||||
Adjusted EBITDA
|
$
|
4,375
|
|
|
$
|
2,668
|
|
|
$
|
9,050
|
|
|
$
|
2,147
|
|
•
|
increasing our vulnerability to adverse economic conditions in our industry or the economy in general;
|
•
|
requiring substantial amounts of cash to be used for debt servicing, rather than other purposes, including operations;
|
•
|
limiting our ability to plan for, or react to, changes in our business and industry;
|
•
|
limiting its ability to complete Keymile acquisition; and
|
•
|
influencing investor and customer perceptions about our financial stability and limiting our ability to obtain financing or acquire customers.
|
|
|
|
Payments due by period
|
||||||||||||||||||||||||
|
Total
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
||||||||||||||
Operating leases
|
$
|
21,816
|
|
|
$
|
1,053
|
|
|
$
|
4,088
|
|
|
$
|
2,998
|
|
|
$
|
2,590
|
|
|
$
|
2,664
|
|
|
$
|
8,423
|
|
Purchase commitments
|
2,403
|
|
|
2,403
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Short-term debt - bank and trade facilities
|
34,171
|
|
|
34,171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Short-term debt - related party
|
3,148
|
|
|
3,148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Long-term debt -related party
|
5,000
|
|
|
—
|
|
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
||||||||
Other payable - related party
|
1,859
|
|
|
1,859
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Royalty obligations
|
250
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total future contractual commitments
|
$
|
68,647
|
|
|
$
|
42,884
|
|
|
$
|
4,088
|
|
|
$
|
2,998
|
|
|
$
|
7,590
|
|
|
$
|
2,664
|
|
|
$
|
8,423
|
|
Exhibit
Number
|
Description
|
|
|
|
|
31.1
|
|
31.2
|
|
32.1
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
DASAN ZHONE SOLUTIONS, INC.
|
||
|
|
|
|
Date: November 8, 2018
|
|
|
|
|
By:
|
|
/s/ IL YUNG KIM
|
|
Name:
|
|
Il Yung Kim
|
|
Title:
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
By:
|
|
/s/ MICHAEL GOLOMB
|
|
Name:
|
|
Michael Golomb
|
|
Title:
|
|
Chief Financial Officer, Corporate Treasurer and Secretary
|
|
|
|
|
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