DASAN Zhone Announces Receipt of Letter from Nasdaq Regarding Non-Compliance
DASAN Zhone Solutions, Inc. (NASDAQ: DZSI), a global leader in fiber access transformation for enterprise and service provider networks, today announced that on November 16, 2016, it received a letter from The Nasdaq Stock Market LLC ("Nasdaq") notifying the company that it was not in compliance with the periodic filing requirements for continued listing set forth in Rule 5250(c)(1) of the Nasdaq Marketplace Rules because its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 (the "Form 10-Q") filed with the Securities and Exchange Commission (the "SEC") on November 15, 2016 had not yet been reviewed by an independent registered public accounting firm. Nasdaq provided the company until January 15, 2017 to submit a plan to regain compliance and, if Nasdaq accepts the company's plan, Nasdaq can grant the company an additional compliance period until May 8, 2017 to regain compliance. As previously disclosed, the company is still in the process of engaging a new independent registered public accounting firm following the previously disclosed resignation of KPMG, LLP, and the company intends to file an amendment to the Form 10-Q promptly following the company's engagement of an independent registered public accounting firm and the completion of their review of the interim unaudited financial statements as of and for the three and nine months ended September 30, 2016. If the company is unable to regain compliance with the periodic filing requirements set forth in Rule 5250(c)(1) of the Nasdaq Marketplace Rules during the compliance period, the company's common stock would be subject to delisting. Delisting 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. 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.
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.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including statements related to the company regaining compliance with
the periodic filing requirements set forth in Rule 5250(c)(1) of the
Nasdaq Marketplace Rules and the consequences of delisting the
company's common stock from the Nasdaq Capital Market. Readers are
cautioned that these forward-looking statements are only predictions and
are subject to risks, uncertainties and assumptions that are difficult
to predict, including those identified in the company's other
filings with the SEC. Therefore, actual results may differ materially
and adversely from those expressed in any forward-looking statements.
For information about the factors that could cause such differences,
please refer to the company's SEC filings, including its Annual
Report on Form 10-K for the year ended December 31, 2015 and subsequent
Quarterly Reports on Form 10-Q. Given these uncertainties, you should
not place undue reliance on these forward-looking statements. The
forward-looking statements contained in this press release speak only as
of the date of this release and the company assumes no obligation to
update any forward-looking statements for any reason.