DragonWave Cuts Losses in Half in Q3

Source: Ottawa Business Journal
January 11, 2008 - Ottawa, Canada
 

DragonWave Inc. more than doubled revenues and cut losses in half during its third quarter, citing strong growth outside of North America as a key factor for the improved results.

The Ottawa-based wireless Ethernet networking equipment maker said revenues grew 139.1 per cent year-over-year to $11.5 million. Net losses narrowing to $1.2 million or four cents per share, from $2.5 million, or 71 cents per share.

"DragonWave made good progress during the quarter as we've continued to execute our strategy. We've seen very strong growth in all markets, but particularly outside North America, while continuing to improve our gross margins," said DragonWave CEO Peter Allen in a statement. "We have captured another carrier-class customer and we are seeing excellent traction for our Horizon product line. We continue to be well-positioned as a leader in the high-growth Internet protocol Ethernet-based, high-capacity wireless backhaul equipment market."

The company said revenue from North American customers rose by roughly 70 per cent to $5.7 million, while sales to customers outside North America quadrupled to $5.8 million from $1.4 million.

Gross margin for the third quarter rose by two per cent over the second quarter to 39 per cent, the company added.