DragonWave posts 38.7% jump in Q1 revenues

Source: Ottawa Business Journal
July 12, 2007 - Ottawa, Canada

Ottawa-based DragonWave Inc. has posted its highest-ever quarterly revenues of $8.6 million in its first quarter for fiscal 2008, up 38.7 per cent from a year earlier.

DragonWave, which makes microwave equipment for high-capacity broadband wireless systems, had net losses of $2.7 million, down from the $3-million.

"DragonWave made good progress during the quarter. We've expanded our business internationally and have taken another step forward in improving our margins," said DragonWave chief executive Peter Allen in a statement. "We continue to be well-positioned as a leader in the high-growth Internet-protocol (IP) Ethernet-based, high-capacity wireless backhaul equipment market."

The company saw more than a sixfold increase in revenues from customers outside North America, which grew to $2.6 million from $0.4 million. This segment represented 30 per cent of the company's revenues in the quarter ended May 31, 2007, and was also a new record high for DragonWave. The company attributed the gain to its efforts to increase its customer penetration into regions outside North America.

The company posted gross margin of 35 per cent, a seven-percentage-point increase from the same quarter a year earlier as a result of cost-reduction programs and a "favourable product mix."

DragonWave recently completed its initial public offering on the Toronto Stock Exchange and London AIM market in April.