2022-05-02 | NDAQ:DZSI | Press release
Award-winning CloudCheck® and Expresse® software solutions deployed in over 125 million homes worldwide will extend the DZS Xperience Suite and enhance the DZS Cloud Platform
DALLAS, May 02, 2022 (GLOBE NEWSWIRE) — DZS (Nasdaq: DZSI), a global leader in cloud and access networking software platforms, today announced that it has signed a definitive agreement to acquire core specific assets of Adaptive Spectrum and Signal Alignment, Inc. (ASIA®), an industry pioneer in broadband access quality of experience solutions. These assets include the prime CloudCheck® WiFi Experience Management and Expresse® Access Network Optimization solutions deployed by leading Tier 1 carriers worldwide. As part of the transaction, DZS will gain an elite team of highly skilled cloud software and AI engineers, architects and business leaders. The acquired software solutions will add data analysis and network intelligence capabilities to DZS cloudincluding managed WiFi solutions, access network optimization and intelligent automation tools.
“With over 125 million contracted broadband and WiFi connections, CloudCheck and Expresse will elevate the DZS Cloud platform and expand our customer base to include renowned brands such as Bouygues Telecom, Deutsche Telekom, Liberty Latin America, Lumen, TalkTalk Group, Telefonica, TELUS and approximately 60 other notable service providers around the world,” said Charlie Vogt, President and CEO of DZS. DZS Xperience Software suite with CloudCheck and Expresse, combined with our existing DZS Cloud service orchestration and network automation offerings that are the basis of the new DZS Xtreme software suite, distinguishes DZS Cloud as one of the most complete services industry and customer experience management software platforms with a unique value proposition for multi-vendor service provider network environments.”
CloudCheck and Expresse provide additional revenue opportunities, optimal customer experience, and operational efficiencies for service providers, including:
- High Performance Service Delivery: Intelligent and adaptive Wi-Fi management with real-time performance optimization at the edge
- World-class network and customer support operations: proactive, predictive, and automated diagnostics, troubleshooting, and resolution of service issues integrated into customer support and network operations workflows
- Advanced Service Information and Recommendations: modeling broadband traffic and user behavior to identify service and network upgrade opportunities
CloudCheck and Expresse are uniquely transforming the way service providers manage, optimize, and deliver new services that enhance the consumer experience. Expresse has pioneered the category of access network assurance for service providers worldwide for over a decade. This software solution optimizes the quality of the end-to-end customer experience through real-time monitoring, diagnosis and resolution of performance issues in multi-vendor access networks. CloudCheck will become the DZS consumer management platform, optimizing WiFi performance and offering consumers a menu of features including parental controls, network performance analysis, security protection and a roadmap of new services home.
“The addition of CloudCheck and Expresse to the DZS convergent and transformational portfolio of broadband, mobile connectivity, optical edge and network orchestration solutions will create an enviable end-to-end portfolio of access networks, Wi-Fi home and cloud-native software solutions. . These will further improve connectivity, proliferate adaptive network performance optimization and increase the levels of scalable support provided to the operational efficiency of ASSIA’s existing customers as well as DZS’s many other customers,” said John Cioffi, CEO and President of ASSIA. “DZS’s deployed global base of over 20 million ONTs, access points, gateways and subscriber devices will easily integrate Expresse and CloudCheck. I am proud of the exceptionally talented employees of ASSIA for the many technological advancements and milestones achieved over the years and look to help those who will follow their next chapter of success at DZS.”
Newly acquired customer relationships represent more than 125 million broadband and WiFi connections. Expresse and CloudCheck solutions support over 150 unique residential gateways from a wide range of equipment vendors, furthering DZS’s commitment to open standards and interoperability.
“Over the past decade, Lumen has developed a deep appreciation for the power of CloudCheck and Expresse to help us deliver the best customer experience,” said Brian Bond, vice president of architecture, engineering and technology at Lumen.” The combination of these solutions gives us end-to-end network visibility and management, from the central office to the WiFi-connected subscriber. Lumen leverages diagnostics and optimization from WiFi and Next Best Action recommendations to provide better subscriber service and support and internal proactive maintenance policies, resulting in fewer sends and happier customers .”
“Providing the best possible experience for our customers is important to TELUS,” said Ibrahim Gedeon, Chief Technology Officer, TELUS. “We are excited about the addition of ASSIA’s CloudCheck and Expresse solutions to the DZS Cloud Platform. ASSIA’s solutions have been critical in helping us manage WiFi performance and end-to-end broadband service assurance. As operators continue their ‘softwarization’ journey, integrating performance tools in a holistic way is critical. We believe that CloudCheck and Expresse integrated into the DZS Cloud Platform will help us increase agility and responsiveness of our services.”
This all-cash acquisition will increase DZS Cloud Platform’s recurring Software as a Service (SaaS) revenue, accelerating our previously stated target margin expansion schedule. Expected to close during the second quarter, the acquisition will be accretive to DZS’ adjusted gross margin, adjusted EBITDA margin and non-GAAP EPS.
DZS inc. (NSDQ: DZSI) is a global leader in access networking and cloud software platforms.
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This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of management of the company on the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intent,” “may,” “plan,” “project ,” “seek,” “should,” “target,” “will,” “would,” variations of these words and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The company’s actual results could differ materially and adversely from those expressed or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, the risk factors contained in the Company’s SEC filings, available at www.sec.gov, including, without limitation, the company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and subsequent filings. In addition, additional or unforeseen effects of the COVID-19 pandemic and the global economic climate may create or amplify many of these risks. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. DZS assumes no obligation to update or revise any forward-looking statements for any reason.
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