DASAN Zhone Announces Receipt of Additional Staff Determination Letter
Oakland, Calif., August 29, 2017 – DASAN Zhone Solutions, Inc. (formerly known as Zhone Technologies, Inc.) (NASDAQ: DZSI), a global leader in fiber access transformation for enterprise and service provider networks, today announced that on August 21, 2017, it received notice from the Listing Qualifications Staff (the “Staff”) of The NASDAQ Stock Market LLC (“Nasdaq”) stating the company was not in compliance with NASDAQ Listing Rule 5250(c)(1) (the “Rule”), due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, and that this filing delinquency serves as an additional basis for delisting the company’s securities from the Nasdaq Stock Market. On August 28, 2017, the company submitted formal response to the Nasdaq Hearings Panel (the “Panel”) with the company’s plan to file the Form 10-K for the year ended December 31, 2016 and the Form 10-Q for the periods ended March 31, 2017 and June 30, 2017 by September 27, 2017, deadline already required by the Panel.
Previously, on April 6, 2017 and May 17, 2017, the Staff notified the company that it did not comply with Nasdaq’s filing requirements set forth in the Rule because it had not filed its Annual Report on Form 10-K for the year ended December 31, 2016 and the Form 10-Q for the period ended March 31, 2017, respectively. The company presented its plan to evidence compliance with Nasdaq’s filing requirement Rule, at a hearing before the Panel on May 25, 2017, and by letter dated June 7, 2017, the Panel granted the Company’s request for exception through September 27, 2017 to comply with Nasdaq’s filing requirement . The company is diligently working to evidence compliance with Nasdaq’s filing requirement as soon as possible; however, there can be no assurance that the Panel will grant the company’s request for continued listing and a further stay of suspension. The delisting of the company’s common stock from The Nasdaq Capital Market could have a material adverse effect on the company’s business and on the trading of its common stock.
About DASAN Zhone Solutions
DASAN Zhone Solutions, Inc. (NASDAQ: DZSI) is a global leader in broad-based network access solutions. The company provides solutions in five major product areas including broadband access, Ethernet switching, mobile backhaul, passive optical LAN (POL) and software defined networks (SDN). More than 750 of the world’s most innovative network operators, service providers and enterprises turn to DASAN Zhone Solutions for fiber access transformation. The IP Zhone is the only solution that enables service providers to build the network of the future today, supporting end-to-end voice, data, entertainment, social media, business, mobile backhaul and mobility service. DASAN Zhone Solutions is committed to building the fastest and highest quality All IP Multi-Service solution for its customers. DASAN Zhone is headquartered in Oakland, California.
DASAN Zhone Solutions, the DASAN Zhone Solutions logo, and al DASAN Zhone product names are trademarks of DASAN Zhone Solutions, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or products names are all subject to change without notice.
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. In addition, forward-looking statements include, among others, statements that refer to financial estimates; projections of revenue, margins, expenses or other financial items. Readers are cautioned that actual results could differ materially from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, commercial acceptance of the Company’s products; intense competition in the communications equipment market; the Company’s ability to execute on its strategy and operating plans; and economic conditions specific to the communications, networking, internet and related industries. In addition, please refer 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 Forms 10-K, 10-Q and 8-K. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason.