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DZS

DZS Inc. was an multinational technology company specializing in and optical networking infrastructure, along with software solutions designed to enable gigabit for communication providers, enterprises, and consumers worldwide. The company originated from Zhone Technologies, founded in 1999, which merged with DASAN Network Solutions in September 2016 to form DASAN Zhone Solutions, Inc., before rebranding to DZS Inc. in August 2020. It was headquartered in , and employed about 660 people as of 2023, with higher numbers in prior years, operating across the , , the , , and . Its core offerings included the DZS Velocity platform for edge solutions supporting voice, video, high-speed internet, and business services; the DZS Helix series of optical network terminals and smart gateways for fiber-to-the-home deployments; and the DZS Chronos and DZS Saber systems for optical transport and mobile edge applications. Additionally, DZS developed -based orchestration software under DZS to manage network slicing in open RAN and 4G/ environments, alongside solutions for fiber extension, connected home devices, fixed wireless , and industrial . The company focused on software-defined networking innovations to deliver AI-automated broadband networks, earning recognition such as the 2023 Big Innovation Award for its XCelerate and Velocity V6 systems, and the 2022 and TMC Excellence Awards. However, facing financial challenges including cash flow issues and delayed filings, DZS Inc. filed for Chapter 7 on March 14, 2025, ceasing U.S. operations and initiating proceedings, while its international subsidiaries continued limited activities. In May 2025, key assets including and were acquired by Zhone Technologies, marking the end of DZS as an independent entity.

History

Origins of predecessor companies

Zhone Technologies was founded in September 1999 in , by former executives of Ascend Communications, including Mory Ejabat as CEO and Jeanette Symons as president and , amid the dot-com boom to develop access equipment focused on DSL technologies. The company targeted telecommunications operators seeking to upgrade legacy networks for high-speed delivery, leveraging the founders' experience from Ascend's remote access server innovations. Early milestones for Zhone included its public listing on the National Market in November 2003 through a reverse merger with Tellium Inc., trading under the ZHNE, which provided capital amid a market downturn. Zhone also pioneered multi-service access nodes (MSANs), such as its Single Line Multi-Service (SLMS) architecture, enabling operators to deliver integrated , , and video services over existing . DASAN Network Solutions emerged in the early as the international arm of DASAN Networks, a South Korean firm originally established in 1993 by Min Woo Nam to develop Ethernet-based networking solutions for carrier-grade deployments. Specializing in access and aggregation technologies, it emphasized standards like and EPON to support high-bandwidth fiber-to-the-home services in dense urban environments. Key innovations distinguished the predecessors: Zhone's SLMS platform facilitated upgrades to legacy copper lines by supporting adaptive modulation techniques for enhanced DSL performance without full infrastructure replacement. DASAN, meanwhile, developed cost-effective, high-density Ethernet switches optimized for Asian markets, enabling scalable aggregation in resource-constrained networks with features like 10G uplinks and low power consumption.

Merger and formation

In April 2016, Zhone Technologies, Inc. and DASAN Network Solutions, Inc. announced a definitive merger agreement, under which Zhone would acquire DASAN Network Solutions in a stock-for-stock transaction, resulting in DASAN Networks owning approximately 58% of the combined entity. The transaction was completed on September 9, 2016, forming DASAN Zhone Solutions, Inc., with the company retaining its Nasdaq listing under the new DZSI effective September 12, 2016. Headquartered in , in the , the merged company aimed to leverage the established operations of its predecessors, which had independently developed complementary technologies prior to the union. The strategic rationale for the merger centered on creating a more competitive global player in the access market by integrating Zhone's strong North American sales channels, extensive portfolio in DSL and /MPLS technologies, and established customer base with DASAN's efficient manufacturing capabilities, expertise in fiber-optic and backhaul solutions, and presence in the Asian market. This combination was expected to achieve , cost savings through shared supply chains, and a broader product portfolio to address the growing demand for high-speed infrastructure worldwide. Min Woo Nam, founder of DASAN Networks, was appointed as the initial Chairman of the Board, overseeing the leadership transition that included co-CEOs from both legacy entities. Post-merger, DASAN Zhone Solutions focused on integrating operations, with early efforts yielding combined annual revenue of approximately $247 million by 2017, reflecting successful initial synergies in and . However, key challenges emerged in aligning product lines, particularly harmonizing Zhone's legacy DSL-focused hardware with DASAN's emphasis on advanced fiber-optic systems, which required coordinated R&D and adjustments to avoid disruptions in customer deployments. These integration hurdles were compounded by the need to unify and marketing strategies across diverse geographic markets, though the company reported progress in opportunities by late 2017.

Rebranding and expansion

In August 2020, DASAN Zhone Solutions rebranded to DZS Inc., consolidating its acquired brands under a unified identity that emphasizes Digital, Zero-touch, Software-defined networking solutions to align with emerging trends in 5G, next-generation passive optical networks (PON), and software-defined networking (SDN). This rebranding coincided with the appointment of Charlie Vogt as president and CEO, succeeding Yung Kim, to drive innovation in broadband access and cloud-native technologies. As part of its strategic repositioning, DZS relocated its global headquarters from , to , in March 2020, prior to the rebranding, to lower fixed operating expenses, tap into the region's deep pool of engineering talent in , SDN, (NFV), and fiber access, and improve proximity to key customers in the . The move established a new engineering in Plano, supporting DZS's focus on cost-efficient scaling and talent acquisition amid growing demand for hyper-connected networks. Post-rebranding, DZS expanded into transport solutions and AI-driven cloud management platforms, leveraging its technology pillars—including connectivity, fiber access, passive optical for enterprises, and connected premises—to address operator needs for automated, multi-gigabit services. This growth manifested in record fiscal year 2022 revenue of $376 million, a 7% increase from 2021, driven by deployments in fiber-to-the-home (FTTH) and backhaul. DZS's AI-enhanced offerings, such as DZS Cloud and CloudCheck, enable real-time network assurance, experience management, and automation for service orchestration across access, mobile, and NFV domains. Key expansions included partnerships with major telecom operators for gigabit rollouts, such as collaborations with for advanced fiber technologies across , enabling multi-gigabit FTTH deployments, and with in for 10 Gbps PON upgrades to support nationwide gigabit services. These efforts underscored DZS's shift toward experience-driven networking, culminating in recognitions like the 2022 Light Reading Award for its CloudCheck platform in the outstanding customer experience use case category. By 2024, these initiatives positioned DZS as a key player in open, AI-automated ecosystems, with ongoing multi-year projects in FTTX and transport.

Acquisitions

In October 2018, DZS announced its intent to acquire KEYMILE GmbH, a provider of access solutions, with the transaction closing on January 3, 2019, for €10.25 million (approximately $11.78 million) in cash. This acquisition integrated KEYMILE's multi-service access platforms, supporting technologies such as /vectoring and G.fast for FTTx networks, thereby expanding DZS's portfolio in copper-based solutions and enhancing its presence in and . The deal complemented DZS's existing fiber-optic offerings, providing service providers with greater flexibility in mixed-technology deployments. On January 20, 2021, DZS signed a definitive to acquire Optelian Access Networks Corporation, a Canadian innovator in coherent , which closed on February 5, 2021, for $7.5 million. The purchase added Optelian's O-series optical transport portfolio, including reconfigurable optical add-drop multiplexers (ROADMs) and environmentally hardened systems for dense (DWDM) networks, strengthening DZS's capabilities in metro and regional aggregation for mobile backhaul (xHaul). This move broadened DZS's optical transport solutions, enabling carrier-grade reliability in harsh environments and supporting customers in . In March 2021, DZS acquired , a U.S.-based provider of cloud-native network orchestration software, for $0.5 million, with the deal announced and closed on March 4, 2021. The acquisition incorporated RIFT's RIFT.ware platform, which facilitates (SDN), (NFV), and automated deployment of services across multi-cloud environments, including advanced analytics for slicing and . It also brought on board RIFT's engineering teams in , , and , , accelerating DZS's development of end-to-end . These acquisitions from 2018 to 2021 marked DZS's strategic pivot toward integrated hardware-software ecosystems, blending traditional access and optical technologies with emerging SDN and NFV capabilities to support the transition to software-defined networks. The deals contributed to overall expansion, with DZS reporting an 18% year-over-year increase in to $91 million in 2023, partly driven by enhanced cloud and software offerings stemming from these integrations.

Bankruptcy and asset sale

DZS experienced escalating financial challenges from 2023 to 2024, driven by declining revenues amid disruptions, elevated component costs, and intensifying competition in the fiber optics market. For fiscal year 2023, the company reported net revenues of $244.5 million, a 31.6% decrease from $357.5 million in 2022, primarily due to reduced spending by major customers in and the , alongside unfavorable product mix shifts and increased inventory obsolescence reserves that eroded gross margins to 16.5%. These pressures contributed to a net loss of $135.2 million for FY 2023, exacerbated by higher operating expenses and a $12.6 million impairment charge. In 2024, revenues further contracted to approximately $139 million, with a net loss of $24.4 million, reflecting ongoing issues with customer demand and cost management despite some operational adjustments. On March 14, 2025, DZS Inc. and its related entities filed voluntary petitions for relief under Chapter 7 of the U.S. Code in the United States Bankruptcy Court for the Eastern District of , initiating proceedings. The filing led to the immediate cessation of all U.S. operations, with the company unable to secure additional to sustain activities. As a result, substantially all U.S.-based employees were terminated effective that date, affecting over 500 workers and marking a significant impact on the workforce. Foreign subsidiaries, particularly in , continued limited operations during the process. The bankruptcy estate proceeded with an auction of DZS's assets, culminating in the acquisition of key assets—including , product lines, and related technologies—by Zhone Technologies, Inc., a of Managed Network Systems, Inc. (MSNi), on May 1, 2025, following court approval. The transaction amount remained undisclosed, but it effectively transferred core access and optical networking technologies back under the Zhone brand, reviving the original name from DZS's predecessor heritage. Following the acquisition, Zhone Technologies integrated the DZS assets and, as of November 2025, operates with over 200 employees, continuing development and support for the technologies. This sale concluded the liquidation of DZS as an independent entity, with remaining creditor claims addressed through the proceedings. In the aftermath, DZS's common stock, previously delisted from in October 2024 for failure to meet filing requirements, briefly traded on the OTC Pink market before the rendered it effectively worthless. The process prioritized creditor distributions from asset proceeds, though recovery rates were limited given the company's substantial liabilities exceeding $200 million as of the filing date. The events underscored vulnerabilities in the equipment sector, including overreliance on specific markets and fragility.

Products and services

DZS's products and services, following the company's 2025 and asset to Zhone Technologies, are now integrated into Zhone's portfolio, with many retaining DZS branding.

Access networking solutions

DZS's access networking solutions provided hardware and systems for access and aggregation, enabling service providers to deliver high-speed over and infrastructures. The core product lines within the Xtreme Access platforms included optical line terminals (OLTs) supporting and EPON technologies, which facilitated passive optical networks (PON) for efficient deployment. These OLTs, such as those in the Velocity series, supported speeds up to 10G, including XGS-PON capabilities, and integrated multi-gigabit Ethernet demarcation devices to ensure seamless subscriber from the network edge to end-user premises. Key features of these solutions emphasized and with existing . For fiber-based PON, the systems supported ratios up to 1:128, allowing a single OLT port to serve a large number of subscribers while maintaining high . On the copper side, integration of vectoring and G.fast technologies enabled upgrades to deliver gigabit services over legacy twisted-pair lines, particularly useful for extending reach without full replacement. This hybrid approach reduced deployment costs and supported rapid service rollout for multi-gigabit applications. These solutions found applications in diverse environments, including multi-tenant units (MTUs) for dense urban deployments and rural initiatives where challenges demanded flexible, high-density systems. A representative example was the Velocity V6 system, a 6-slot -based OLT awarded the BIG Innovation Award for its non-blocking architecture, 50G+ PON readiness, and leading-edge density in disaggregated access networking. The V6 platform offered technical specifications such as capacity for up to 2,048 subscriber ports per and zero-touch provisioning through software overlays, enabling automated configuration and management for streamlined operations.

Optical transport systems

DZS's optical transport systems provided high-capacity solutions for backbone and metro networks, leveraging dense (DWDM) and packet-optical technologies to support growing bandwidth demands in and cloud environments. The core of DZS's portfolio was the Xtreme Transport series, built around the Saber 4400 platform, which delivered up to 400 Gbps per wavelength using 100G and 400G coherent optics in a compact 1RU factor. This series included transponders and muxponders such as the TMX-4400 (supporting 100G/400G rates), TMX-4401 (4x100G/400G), and TMX-4402 (4x100G/2x400G), enabling flexible client interfaces from 10G to 400G with features like client/line protection, encryption, and performance monitoring. Reconfigurable optical add-drop multiplexers (ROADMs) were integrated via the RDM-4400, offering 2- to 8-degree colorless, directionless, and contentionless (CDC) FlexGrid ROADM capabilities in a hardened suitable for outdoor deployment. Following the 2021 acquisition of Optelian, DZS integrated advanced multi-haul transponders from the TMS-1190 platform, supporting multi-rate operations from 100G to 800G in (OSP)-capable designs. These innovations enhanced (OTN) multiplexing, allowing efficient aggregation for backhaul by mapping client signals into OTN frames with low latency and high reliability. The systems supported OpenZR+ and XR optics for alien wavelength in open line systems, facilitating multi-vendor environments without proprietary constraints. Deployments of DZS optical transport solutions included and long-haul fiber rings operated by providers in , such as TIM in for 5G xHaul testing, and in , including KT in for 100G anyhaul in networks. These implementations enabled sub-50 ms for cloud interconnects, as demonstrated in multi-vendor trials combining coherent with low-delay protocols. efficiency was a key feature, with the Saber platforms designed for deployment in non-air-conditioned cabinets, achieving scaling without excessive energy use—typically under 1 W/Gbps in coherent modes—while supporting up to 9.6 Tbps system capacity.

Cloud software platforms

DZS's cloud software platforms provided software-defined and AI-driven solutions for , , and tailored to ecosystems. The flagship Cloud suite served as a vendor-neutral, cloud-native platform that delivered end-to-end network and subscriber visibility, enabling service providers to optimize performance and (QoE). This suite incorporated (SDN) controllers that facilitated zero-touch provisioning and configuration across multi-vendor environments, streamlining the lifecycle of services from deployment to ongoing operations. Additionally, it leveraged for , intercepting potential issues to enhance reliability and reduce downtime. Key components of Cloud suite stemmed from strategic acquisitions that bolstered its capabilities in optimization and . From the 2022 acquisition of ASSIA's , TruSpeed integrated advanced algorithms for DSL line optimization, dynamically adjusting allocation to maximize throughput and while minimizing in multi-line deployments. Similarly, the 2021 acquisition of introduced the Cloud Native Orchestrator, a hyperscale-inspired platform that automated the deployment and management of virtual network functions (VNFs) within Kubernetes-based environments, supporting hybrid and multi-cloud infrastructures for carrier-grade services. Core features of these platforms emphasized real-time analytics for (QoS) monitoring, offering in-home visibility and actionable insights derived from subscriber behavior and network data to proactively address performance bottlenecks. The suite integrated seamlessly with operations support systems (OSS) and (BSS) to provide end-to-end assurance, enabling automated workflows for fault detection, , and across , , and NFV domains. Designed for , it supported deployments handling up to 1 million subscribers per instance, facilitating efficient management in large-scale broadband networks serving millions of locations globally. These platforms demonstrated significant industry impact by empowering operators to automate routine tasks, thereby reducing operational expenses through streamlined processes and enhanced efficiency. In recognition of its innovations in hybrid cloud deployments, DZS Cloud received the 2022 TMC Cloud Computing Excellence Award for its orchestration and experience management capabilities.

Corporate affairs

Leadership

Charles D. Vogt has served as President, Chief Executive Officer, and Director of DZS Inc. since August 2020. With more than 30 years of experience in the telecommunications industry, including prior CEO positions at GENBAND and ATX Networks, Vogt brought expertise in optical, video, and next-generation voice technologies to the role. Under his leadership, DZS underwent a rebranding from DASAN Zhone Solutions and pursued an aggressive acquisition strategy to emphasize software-driven solutions, including the 2021 purchase of RIFT for network orchestration and software-defined networking (SDN) capabilities, as well as Optelian and ASSIA to bolster cloud software and service assurance offerings. Misty Kawecki served as Chief Financial Officer of DZS from August 2021 until her departure in September 2024. Bringing over 24 years of finance and accounting experience from roles at MediaKind, Imagine Communications, GENBAND, McAfee, and EY, Kawecki managed financial reporting and compliance during a period of expansion and turbulence, including the November 2022 public offering of common stock that raised approximately $56 million and subsequent cost-reduction initiatives amid declining revenues and Nasdaq compliance challenges. Her tenure culminated in the completion of a comprehensive financial restatement for 2022 and early 2023, following which she stepped down after the company faced mounting financial pressures leading to its 2025 bankruptcy filing and asset sale. DZS's board of directors comprised a mix of telecommunications industry veterans and financial experts, with key governance changes in 2024 reflecting efforts to address financial strain. In February 2024, the board expanded to include Todd Jackson, an attorney with 30 years of M&A advisory experience involving over $30 billion in transactions, and Paul Choi, CEO of Invites Ventures with a background in and M&A, both appointed to strengthen strategic oversight during Nasdaq delisting proceedings and capital raises. served as chair of the , overseeing enhanced financial controls amid the restatement process, while lead independent director David Schopp provided continuity with his six years on the board. Following the 2020 leadership transition from DASAN Networks representatives, the board focused on supporting Vogt's software pivot until the company's dissolution through asset sale in May 2025.

Operations and facilities

DZS maintained a global operational footprint with its headquarters in , serving as the central hub for North American activities. The company operated offices in , including locations in the and , as well as in the and through its UAE office. In , DZS conducted research and development in and provided support services in until the divestiture of its Asia operations to DASAN Networks in January 2024. Overall, these operations enabled DZS to serve over 200 active customers across more than 100 countries worldwide. Manufacturing processes were primarily outsourced for hardware assembly to facilities affiliated with DASAN Networks in , leveraging the company's strong ties to its Korean shareholder. and occurred at U.S.-based engineering centers in , particularly the Plano facility established as a following the 2020 headquarters relocation, and in . This hybrid model supported efficient production of access and optical networking equipment. The supply chain relied on strategic partnerships with key component suppliers, such as , for advanced optical technologies essential to DZS's networking solutions. To mitigate risks associated with proprietary dependencies, DZS emphasized adherence to open standards, including compatibility with Open RAN architectures for mobile fronthaul and backhaul deployments. These practices facilitated and reduced vulnerability to single-vendor disruptions. DZS employed approximately 660 people as of the end of 2023, with a significant portion—approximately 40%—engaged in roles focused on in and technologies. The 2020 move to contributed to operational efficiencies by consolidating key functions and reducing overhead costs.

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