DragonWave Reports Fiscal Q3 Loss
OTTAWA -- DragonWave Inc. (TSX:DWI)(NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for its third quarter ended November 30, 2013. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.
Revenue for the third quarter of fiscal year 2014 was $22.2 million, compared with $25.5 million in the second quarter of fiscal year 2014 and$38.5 million in the third quarter of fiscal year 2013. 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 with 11.0% in the second quarter of fiscal year 2014 and 18.6% in the third quarter of fiscal year 2013. We expect solid gross margin improvement starting in Q4.
On January 10, 2014 we signed a new supply agreement with a major US-based carrier. Activities associated with the first project with this carrier are underway. Deployments from the projects anticipated under this agreement are expected to commence during the first half of 2014.
"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.
Net loss applicable to shareholders in the third quarter of fiscal year 2014 was $5.5 million or ($0.12) per basic and diluted share. This compares to a net loss applicable to shareholders of $10.5 million or ($0.28) per basic diluted share in the second quarter of fiscal year 2014 and net loss of $13.9 million or ($0.36) per basic and diluted share in the third quarter of fiscal year 2013.
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.
DragonWave Inc. (AIM/Toronto: DWI; Nasdaq: DRWI)