DragonWave Reveues Flat on the Quarter

Canadian wireless Ethernet vendor, DragonWave has reported that its 3rd fiscal quarter revenue for the quarter was up very slightly to CA$10.7 million, compared with CA$10.6 million for the previous quarter. Revenue on a year to date basis was CA$32.0 million compared to CA$30.1 million in the previous year, a growth of 6.5%

Revenue from customers within North America was $6.4 million and represented 59% of total revenue for the quarter. Revenue from outside North America was $4.3 million and represented 41% of total revenue for the quarter.

Gross margin for the third quarter was 35%, compared to 34% in the previous quarter.

For the third quarter of fiscal year 2009, the loss from operations was $2.8 million, which was consistent with the loss in the second quarter of fiscal 2009. Expenses prior to the restructuring charge were $6.0 million compared to $6.5 million in the prior quarter. On December 1, 2008 the company announced restructuring measures and a one time charge of $0.5 million has been borne fully in the Q3 FY09 results. The net loss for the quarter was $0.2 million versus $1.7 million in Q2 fiscal 2009.

"DragonWave's results for the quarter showed the company's resilience as we maintained revenue, reduced the cash burn, and took restructuring measures to keep the business healthy. I am particularly pleased with DragonWave's ability to continue to attract new customers, with shipments to 14 new customers in the third quarter, 12 of which were located outside of North America." said Peter Allen, President and CEO of DragonWave.

Posted to the site on 9th January 2009