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DragonWave Reports Strong Second Quarter Fiscal Year 2015 Results Revenue growth of 32% over previous quarterOttawa, Canada, October 8, 2014 – DragonWave Inc. (TSX:DWI; NASDAQ:DRWI) announced financial results for the second quarter of fiscal year 2015, ended August 31, 2014. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles. Revenue for the second quarter of fiscal year 2015 was $37.9 million, compared with $28.8 million in the first quarter of fiscal year 2015 and $25.5 million in the second quarter of fiscal year 2014. Revenue from the Nokia channel represented 60% of revenue in the second quarter of fiscal year 2015, versus 61% in both the first quarter of this fiscal year and the second quarter of fiscal year 2014. DragonWave had one other customer that contributed greater than 10% of revenue in the second quarter of fiscal year 2015. Gross margin for the second quarter of fiscal year 2015 was 15.5%, compared with 20.5% in the first quarter of fiscal year 2015 and 11.0% in the second quarter of fiscal year 2014. The gross margin in the second quarter of fiscal year 2015 reflects the inclusion of an inventory impairment provision of $1.2 million. If you exclude this provision, the gross margin before inventory provision was 18.8% during the second quarter of fiscal year 2015. Net loss applicable to shareholders in the second quarter of fiscal year 2015 was $8.9 million or ($0.14) per basic and diluted share. This compares to a net loss applicable to shareholders of $6.6 million or ($0.11) per basic and diluted share in the first quarter of fiscal year 2015 and a net loss applicable to shareholders of $10.5 million or ($0.28) per basic and diluted share in the second quarter of fiscal year 2014. “We delivered another quarter of strong sequential growth,” said DragonWave President and CEO Peter Allen. “Our product leadership together with strong global capex cycles underpin the business momentum we are experiencing. We anticipate fiscal third-quarter revenue to grow between 20% and 30% compared to our fiscal second quarter.” Cash and cash equivalents totaled $33.6 million at the end of the second quarter of fiscal year 2015, compared to $15.6 million at the end of the first quarter of fiscal year 2015. Webcast and Conference Call Details: The DragonWave management team will discuss the results on a webcast and conference call beginning at 8:30 a.m. Eastern Time on October 9, 2014. The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at: http://investor.dragonwaveinc.com/events.cfm An archive of the webcast will be available at the same link. Conference call dial-in numbers: Toll-free North America Dial-in: (877) 312-9202 International Dial-in: (408) 774-4000 About DragonWave DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave’s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave’s products is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave’s corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com. As a community-building service, TMCnet allows user submitted content which is not always proofed by TMCnet editors. If you feel this entry is of inferior quality or wish to report it for some reason, please forward the URL to "webedit [AT] tmcnet [DOT] com" with your comments. |