DragonWave Breaks into Profit in Fiscal Quarter

­DragonWave has reported that its revenue for the second fiscal quarter was C$35.5 million (US$33.6 million), compared with C$10.6 million for the same period of the last fiscal year, an increase of 236%.

There was growth in demand from a variety of customers globally and the most significant increase came from the Company's existing major North American based customer, which accounted for 77% of revenue in the fiscal quarter.

Gross margin for the second fiscal quarter was 42%, an 8% increase from the gross margin reported in the second quarter of fiscal 2009, and reflects the benefits of cost reduction programs, new sources of supply and volume discounts made available as a result of the increase in demand. Gross margin for the six months ended August 31, 2009 was 40% compared to 38% in the same six month period in the previous year.

The net income for the fiscal quarter was C$6.3 million (US$6 million) versus a loss of C$1.7 million (US$1.6 million) in the same quarter of the previous year.

Based on strength in the ongoing Clearwire business together with stronger demand in other areas of the DragonWave business we now expect that that revenue in fiscal year 2010 will exceed C$150 million.

The company is currently preparing for a stock market floatation.

Posted to the site on 9th October 2009