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DragonWave Announces More Job Losses
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Microwave radio systems vendor, DragonWave has announced a further 48 redundancies as it seeks to cut costs and slow down its cash burn.
DragonWave said that it will eliminate 48 positions across all functions from the company's workforce primarily in Ottawa and Israel, which it expects to lead to savings of approximately US$6 million in annual operating expenses as a result of these staff reductions and other measures.
DragonWave anticipates restructuring charges in the third quarter of fiscal year 2013 as a result of the elimination of these positions to be approximately US$1 million, and a one-time cash usage in the third quarter of fiscal year 2013 of approximately US$1.6 million.
Peter Allen, DragonWave's President and CEO, said "We have now completed our first full quarter of expanded operations that include the microwave transport business acquired from NSN on June 1, 2012. We are utilizing this experience to rationalize our operations, with a focus on reducing recurring costs. Transition and integration activities with NSN are ongoing and we continue to evaluate the appropriate scale for the combined business. We will closely monitor the need to adjust our cost profile as these activities progress and as we gain greater visibility into revenue opportunities."
DragonWave also updated its revenue guidance for the second quarter of fiscal year 2013. DragonWave now expects revenue for the quarter ended August 31, 2012 to be above US$40 million.
Tags: [dragonwave] [Canada] [Israel]
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