DragonWave Sees North American Traction in Q1

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

DragonWave Inc. saw solid financial performance in the first quarter of its fiscal 2009 year, with the wireless networking company posting higher revenues and lower losses.

The Ottawa-based company said revenues rose by 24.3 per cent to $10.7 million, as sales to North American customers enjoyed double-digit growth.

As well, the company reduced net loss to $1.9 million or seven cents per share, from $2.7 million or 21 cents per share a year earlier.

"DragonWave made good progress during the quarter," said DragonWave CEO Peter Allen in a statement, pointing to the company's sales gains and customer traction as well as to new product introductions as an indication of its growth. "Our overall portfolio is strongly placed for the growing high-capacity wireless backhaul market. Our recent announcement of our selection by Sprint validates our leadership position in North America."

The company noted that revenue from customers in North America grew by roughly 34 per cent to $8 million, while revenue from outside North America represented 25 per cent of total revenue for the quarter.

As well, gross margin for the first quarter rose by six percentage points from a year earlier to 41 per cent, as the company continued to reduce costs. First-quarter gross margin was unchanged from the fourth quarter.