DragonWave Boosts Sales in Q2

Source: Ottawa Business Journal
October 05, 2007 - Ottawa, Canada
 

Wireless networking equipment company DragonWave Inc. almost doubled sales and cut net losses in its second quarter.

The Ottawa-based company, which makes carrier-grade microwave equipment for high-capacity broadband wireless systems, reported second-quarter revenues of $9.9 million, up 91.4 per cent from a year earlier. Net losses fell by 17.9 per cent to $2.1 million, or eight cents per share.

"DragonWave made good progress during the quarter," said chief executive Peter Allen in a statement. "We've seen very strong growth both in North America and internationally, while continuing to improve our gross margins. 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 said revenue from customers in North America more than doubled to $8.2 million from $4 million, while revenue from outside North America grew by roughly 40 per cent year-over-year to $1.7 million.

Gross margin for the second quarter rose to 36.5 per cent from 34.4 per cent in the same period a year earlier, which the company attributed to "continued cost-reduction programs."

The company also strengthened its balance sheet with cash and cash equivalents of $23.1 million at the end of the period, up from just $2.8 million a year earlier.