---
schema_version: "secwatch.filing_event.v1"
accession: "0001101680-24-000021"
form_type: "8-K"
ticker: null
cik: "0001101680"
company_name: "DZS INC."
filed_at: "2024-01-30T23:59:59+00:00"
generated_at: "2026-06-06T14:38:31.922430+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# DZS auditor EY resigns; restatement of 2022 and Q1 2023 financials ongoing

## Summary
- 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.

## SEC filing metadata
- accession: 0001101680-24-000021
- form_type: 8-K
- cik: 0001101680
- company_name: DZS INC.
- filed_at: 2024-01-30T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 4.01, 5.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000021/0001101680-24-000021-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000021/dzsi-20240108.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001101680-24-000021
- JSON: https://secwatch.observer/filing/0001101680-24-000021.json
- Plain text: https://secwatch.observer/filing/0001101680-24-000021.txt

## Key facts
- Auditor Changes
  Ernst & Young LLP resigned as auditor of DZS INC..
  - Action: resignation
  - Auditor: Ernst & Young LLP
  source text: (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).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000021/0001101680-24-000021-index.htm
- Executive change
  Raghu Marthi changed role as Chief Operations Officer at DZS INC..
  - Action: promoted
  - Role: Chief Operations Officer
  source text: On January 8, 2024, the Company promoted Raghu Marthi from Chief Information Officer to Chief Operations Officer.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000021/0001101680-24-000021-index.htm
- Executive change
  Norman Foust departed as Senior Vice President of Global Supply Chain at DZS INC..
  - Action: departed
  - Role: Senior Vice President of Global Supply Chain
  source text: On January 19, 2024, Norman Foust departed from the Company, including his position as Senior Vice President of Global Supply Chain of the Company.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000021/0001101680-24-000021-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.