DZS INC.: auditor change — DZS auditor EY resigns; restatement of 2022 and Q1 2023 financials ongoing

DZS INC.

Ernst & Young resigned as independent auditor effective Jan 25, 2024; Audit Committee accepted resignation.
Company intends to restate 2022 annual and interim financials plus Q1 2023 due to revenue recognition errors.
Prior material weakness in internal controls over revenue recognition; additional weaknesses expected.
Raghu Marthi promoted from CIO to COO on Jan 8, 2024; Norman Foust (SVP Global Supply Chain) departed Jan 19.
Company seeking new independent accountant for 2023 audit and restated filings.

item 4.01 item 5.02 item 9.01

Executive movements

Machine-extracted from this filing. Every card cites the SEC source. See all recent executive movements.

Role change

Raghu Marthi

Chief Operations Officer

DZS INC.

Effective: 2024-01-08
Filed: January 30, 2024, 6:59 PM ET

On January 8, 2024, the Company promoted Raghu Marthi from Chief Information Officer to Chief Operations Officer.

Departed

Norman Foust

Senior Vice President of Global Supply Chain

DZS INC.

Effective: 2024-01-19
Filed: January 30, 2024, 6:59 PM ET

On January 19, 2024, Norman Foust departed from the Company, including his position as Senior Vice President of Global Supply Chain of the Company.

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Ernst & Young LLP resigned as auditor of DZS INC..

Action: resignation
Auditor: Ernst & Young LLP

Exact text from the filing

(the “Company”) was notified by the Company’s independent registered public accounting firm, Ernst & Young LLP (“EY”), of its decision to resign as independent registered public accounting firm of the Company, effective as of that date. The Audit Committee of the Board of Directors of the Company (the “Audit Committee”) accepted EY’s resignation. The Company and the Audit Committee have initiated discussions with other independent registered public accounting firms to represent the Company for the year ended December 31, 2023, as well as the restatement of the 2022 Annual Financial Statements (as defined below).

View on SEC.gov

Executive change SEC 8-K Item 5.02 confidence 0.95

Raghu Marthi changed role as Chief Operations Officer at DZS INC..

Action: promoted
Role: Chief Operations Officer

Exact text from the filing

On January 8, 2024, the Company promoted Raghu Marthi from Chief Information Officer to Chief Operations Officer.

View on SEC.gov

Executive change SEC 8-K Item 5.02 confidence 0.95

Norman Foust departed as Senior Vice President of Global Supply Chain at DZS INC..

Action: departed
Role: Senior Vice President of Global Supply Chain

Exact text from the filing

On January 19, 2024, Norman Foust departed from the Company, including his position as Senior Vice President of Global Supply Chain of the Company.

View on SEC.gov

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Source: SEC EDGAR

accession 0001101680-24-000021

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