DragonWave Posts Another Quarter of Declining Revenues
Published on: 14th Jan 2014
By: Ian Mansfield
Microwave backhaul vendor DragonWave has reported another decline in its quarterly revenues which came in a USD22.2 million compared to USD38.5 million a year ago. Revenue from the Nokia Solutions and Networks (NSN) channel represented 51% of revenue in the fiscal quarter.
Gross margin for the third quarter of fiscal year 2014 was 11.1%, compared 18.6% in the third quarter of fiscal year 2013.
The company said that it expects solid gross margin improvement starting in Q4.
The net loss shrank though, to USD5.5 million as compared to a loss of USD13.9 million last year.
"Network rollout plans in the United States and India are at the core of our future growth strategy. To position ourselves for these opportunities we have increased and extended our credit facilities in addition to the cash we raised in September" said DragonWave President and CEO, Peter Allen.
Cash and cash equivalents totaled $23.5 million at the end of the third quarter of fiscal year 2014, compared to $9.8 million at the end of the second quarter of fiscal year 2014.
The company also revealed that it had signed a new supply agreement with an unnamed USA-based carrier in the past couple of weeks. Although unnamed, it is widely thought to be Sprint, which recently acquired Clearwire, an existing DragonWave customer. Deployments from the projects anticipated under this agreement are expected to commence during the first half of 2014.