Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

DragonWave Inc. Reports Third Quarter Fiscal Year 2013 Results

OTTAWA, CANADA -- (Marketwire) -- 01/09/13 -- DragonWave Inc. (TSX:DWI)(NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today reported financial results for its third quarter of fiscal year 2013, ended November 30, 2012. All figures are reported in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles (GAAP).

Revenue for the third quarter of fiscal year 2013 was $38.5 million, compared with $11.8 million in the third quarter of fiscal year 2012 and $44.2 million in the second quarter of fiscal year 2013. DragonWave had one customer, Nokia Siemens Networks, who generated more than 10% of revenue in the third quarter of fiscal year 2013. Revenue through the new Nokia Siemens Networks channel totaled $25.6 million in the quarter.

Gross margin for the third quarter of fiscal year 2013 was 19%, compared with 41% in the third quarter of fiscal year 2012 and 15% in the second quarter of fiscal year 2013. The gross margin in the second quarter of fiscal year 2013 reflects the inclusion of an inventory impairment provision of $2.6 million. Without the inventory provision, the gross margin in the second quarter was 21%.

Comprehensive loss applicable to shareholders in the third quarter of fiscal year 2013 was ($13.9) million or ($0.36) per basic and diluted share, compared to a loss of ($8.0) million or ($0.23) per basic and diluted share in the third quarter of fiscal year 2012.

"While visibility into our revenue pipeline has been challenging, we have continued to work hard on completing the integration activities of our strategic partnership with Nokia Siemens Networks to position ourselves for growth," said DragonWave President and CEO Peter Allen. "These efforts combined with our continued focus on cost reduction are targeted at achieving a profitable business model."

Cash, cash equivalents and restricted cash totaled $36.8 million, compared to $44.0 million at the end of the second quarter of fiscal year 2013.

Revenue for the first nine months of fiscal year 2013 was $95.6 million, compared with $36.5 million for the first nine months of 2012. Net loss applicable to shareholders for the first nine months of fiscal 2013 was ($27.6) million or ($0.74) per basic and diluted share, compared with ($20.1) million or ($0.57) per basic and diluted share for the first nine months of fiscal 2012.

Revenue Outlook for Fourth Quarter Fiscal Year 2013

DragonWave expects revenue for the fourth quarter of fiscal year 2013 to be in the range of $40 million to $45 million.

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 tomorrow, January 10, 2013.

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: (877) 312-9202 

--  International: (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. 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.

DragonWave® is a registered trademark of DragonWave Inc.

Forward-Looking Statements

Certain statements in this release, including the estimate of the revenue range for the fourth quarter of fiscal year 2013, our statement regarding our intentions with respect to our cost profile and target of a profitable business, and the statements regarding our relationship with and the transactions involving Nokia Siemens Networks (the "NSN Transactions") constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. These statements are subject to certain assumptions, risks and uncertainties.

Material factors and assumptions used to develop revenue estimates include DragonWave's expectations regarding: the plans of its existing and new direct and indirect customers, the volume and timing of orders, shipments and revenue recognition; and the capacity of our supply chain to meet demand. Material factors and assumptions relating to our relationship with Nokia Siemens Networks and the NSN Transactions include the parties' beliefs regarding the industry and markets in which the parties operate; successful integration of the product lines acquired from Nokia Siemens Networks; and expectations regarding potential synergies and prospects for the business. There are risks arising out of the NSN Transactions, including that expected synergies will not materialize; that unexpected costs will be incurred to integrate the business; or that end-customer demand will not meet expectations. Material risks and uncertainties relating to the NSN Transactions are described under the heading "Risks and Uncertainties" in the MD&A dated January 9, 2013 and on pages 19-22 of the Company's Annual Information Form, dated May 11, 2012.

Readers are cautioned not to place undue reliance on forward-looking statements. These statements are provided to assist external stakeholders in understanding DragonWave's expectations as of the date of this release and may not be appropriate for other purposes. Actual results, performance, achievements or developments of DragonWave may differ materially from the results, performance, achievements or developments expressed or implied by such statements.

Risk factors, in addition to those detailed above, that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in DragonWave's Annual Information Form dated May 11, 2012 and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively, and include the following:

--  DragonWave's growth is dependent on the development and growth of the
    market for high-capacity wireless communications services. 
    
--  DragonWave relies on a small number of customers for a large percentage
    of its revenue and DragonWave's future growth depends on the success of
    its customer diversification efforts. 
    
--  Network deployment plans by DragonWave's existing and potential
    customers are capital intensive and the timing of such deployments is
    affected by such customers' access to capital. 
    
--  DragonWave faces intense competition from several competitors and if it
    does not compete effectively with these competitors, its revenues may
    not grow and could decline. DragonWave also faces competition from
    indirect competitors. 
    
--  DragonWave relies on its suppliers to supply components for its products
    and the Company is exposed to the risk that these suppliers will not be
    able to supply components on a timely basis, or at all. 
    
--  DragonWave's success depends on its ability to develop new products and
    enhance existing products. 
    
--  DragonWave's quarterly revenue and operating results can be difficult to
    predict and can fluctuate substantially. 
    
--  If DragonWave is required to change its pricing models to compete
    successfully, its margins and operating results may be adversely
    affected. 
    
--  DragonWave has a lengthy and variable sales cycle. 

DragonWave assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether because of new information, future events or otherwise, except as expressly required by law.

                         CONSOLIDATED BALANCE SHEETS                        
                 Expressed in US $000's except share amounts                
                                                                            
                                                  As at               As at 
                                           November 30,        February 29, 
                                                   2012                2012 
                                    ----------------------------------------
Assets                                                                      
Current Assets                                                              
  Cash and cash equivalents                      36,444              52,798 
  Restricted cash                                   393                 177 
  Trade receivables                              31,805               9,850 
  Inventory                                      29,669              27,043 
  Other current assets                            8,968               5,501 
  Contingent receivable                          13,739                   - 
  Deferred tax asset                                241                  69 
                                    ----------------------------------------
                                                121,259              95,438 
Long Term Assets                                                            
  Property and equipment                          8,734               5,184 
  Deferred tax asset                              1,693               1,308 
  Deferred financing cost                           298                   - 
  Intangible assets                               8,522               6,264 
  Goodwill                                       11,927              11,927 
                                    ----------------------------------------
                                                 31,174              24,683 
                                                                            
Total Assets                                    152,433             120,121 
                                    ----------------------------------------
                                    ----------------------------------------
                                                                            
Liabilities                                                                 
Current Liabilities                                                         
  Accounts payable and accrued                                              
   liabilities                                   49,213              12,720 
  Deferred revenue                                  973                 723 
  Capital lease obligation                        2,617                   - 
  Contingent royalty                                  -                 372 
  Contingent consideration                            -               1,884 
                                    ----------------------------------------
                                                 52,803              15,699 
                                                                            
Long Term Liabilities                                                       
  Debt facility                                  15,000                   - 
  Capital lease obligation                        1,444                   - 
  Other long term liabilities                       659               1,063 
  Contingent royalty                                  -               1,292 
                                    ----------------------------------------
                                                 17,103               2,355 
                                                                            
Commitments                                                                 
                                                                            
Shareholders' equity                                                        
  Capital stock                                 179,407             172,264 
  Contributed surplus                             5,726               4,606 
  Deficit                                       (93,016)            (65,448)
  Accumulated other comprehensive                                           
   loss                                          (9,685)             (9,658)
                                    ----------------------------------------
Total Shareholders' equity                       82,432             101,764 
                                                                            
  Non-controlling interests                          95                 303 
                                    ----------------------------------------
Total Equity                                     82,527             102,067 
                                                                            
Total Liabilities and Shareholders'                                         
 equity                                         152,433             120,121 
                                    ----------------------------------------
                                    ----------------------------------------
                                                                            
Shares issued & outstanding                  38,041,010          35,586,206 
                                                                            
                                                                            
                                                                            
                    CONSOLIDATED STATEMENTS OF OPERATIONS                   
                       AND COMPREHENSIVE INCOME (LOSS)                      
          Expressed in US $000's except share and per share amounts         
                                                                            
                                 Three months ended       Nine months ended 
                            ------------------------------------------------
                               November    November    November    November 
                                    30,         30,         30,         30, 
                                   2012        2011        2012        2011 
                            ------------------------------------------------
                                                                            
REVENUE                          38,452      11,830      95,583      36,506 
  Cost of sales                  31,314       6,992      77,569      21,249 
                            ------------------------------------------------
Gross profit                      7,138       4,838      18,014      15,257 
                            ------------------------------------------------
                                                                            
EXPENSES                                                                    
  Research and development        9,769       5,380      26,307      17,751 
  Selling and marketing           3,935       3,793      11,950      11,722 
  General and administrative      6,218       4,985      20,001      12,665 
  Government assistance               -        (265)          -        (902)
                            ------------------------------------------------
                                 19,922      13,893      58,258      41,236 
                            ------------------------------------------------
Income (loss) before other                                                  
 items                          (12,784)     (9,055)    (40,244)    (25,979)
                                                                            
  Amortization of intangible                                                
   assets                        (1,162)       (404)     (2,903)     (1,613)
  Accretion expense                 (16)        (60)        (68)       (612)
  Restructuring expense            (839)          -      (1,637)          - 
  Interest income (expense)        (500)        143      (1,211)        354 
  Investment gain                     -           1           -          21 
  Impairment of intangible                                                  
   assets                        (4,407)          -      (8,424)     (8,315)
  Gain on change in estimate      5,416       1,362       6,958      14,523 
  Gain on purchase of                                                       
   business                           -           -      19,397           - 
  Foreign exchange gain                                                     
   (loss)                           419        (202)       (122)       (118)
                            ------------------------------------------------
Income (loss) before income                                                 
 taxes                          (13,873)     (8,215)    (28,254)    (21,739)
                                                                            
  Income tax expense                                                        
   (recovery)                        63        (157)       (509)     (1,458)
                            ------------------------------------------------
Net Income (loss)               (13,936)     (8,058)    (27,745)    (20,281)
                                                                            
  Net Loss Attributable to                                                  
   Non-Controlling Interest          69          41         177         168 
                            ------------------------------------------------
Net Income (loss) applicable                                                
 to shareholders                (13,867)     (8,017)    (27,568)    (20,113)
                                                                            
  Foreign currency                                                          
   translation differences                                                  
   for foreign operations            (8)         57          54          75 
                            ------------------------------------------------
Comprehensive Income (Loss)     (13,928)     (8,115)    (27,799)    (20,356)
                                                                            
  Comprehensive Income                                                      
   (Loss) applicable to Non-                                                
   Controlling Interest              (4)         28          73          37 
                            ------------------------------------------------
Comprehensive Income (Loss)                                                 
 applicable to shareholders     (13,871)     (7,989)    (27,495)    (20,076)
                                                                            
Income (loss) per share                                                     
  Basic                           (0.36)      (0.23)      (0.74)      (0.57)
  Diluted                         (0.36)      (0.23)      (0.74)      (0.57)
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
  Basic                      38,033,222  35,542,247  37,313,926  35,486,924 
  Diluted                    38,033,222  35,542,247  37,313,926  35,486,924 
                                                                            
                                                                            
                                                                            
                    CONSOLIDATED STATEMENTS OF CASH FLOWS                   
                           Expressed in US $000's                           
                                                                            
                                 Three months ended       Nine months ended 
                            ------------------------------------------------
                               November    November    November    November 
                                    30,         30,         30,         30, 
                                   2012        2011        2012        2011 
                            ------------------------------------------------
                                                                            
Operating Activities                                                        
Net Income (Loss)               (13,936)     (8,058)    (27,745)    (20,281)
Items not affecting cash                                                    
  Amortization of property                                                  
   and equipment                  1,672         839       4,150       2,513 
  Amortization of intangible                                                
   assets                         1,162         404       2,903       1,613 
  Accretion expense                  16          60          68         612 
  Royalty amortization                -         (21)       (151)       (423)
  Interest expense                  210           -         421           - 
  Rental expense                    957           -       1,914           - 
  Impairment of intangible                                                  
   assets                         4,407           -       8,424       8,315 
  Gain on change in estimate                                                
   of contingent liabilities     (5,416)     (1,362)     (6,958)    (14,523)
  Stock-based compensation          404         475       1,196       1,549 
  Gain on purchase of                                                       
   business                           -           -     (19,397)          - 
  Unrealized foreign                                                        
   exchange loss                   (670)         56         (21)        130 
  Future income tax recovery          -        (157)       (572)     (1,458)
  Inventory impairment               18          29       2,691         190 
                            ------------------------------------------------
                                (11,176)     (7,735)    (33,077)    (21,763)
                                                                            
Changes in non-cash working                                                 
 capital items                    5,012      (3,220)     19,081      (6,551)
                            ------------------------------------------------
                                 (6,164)    (10,955)    (13,996)    (28,314)
                            ------------------------------------------------
                                                                            
Investing Activities                                                        
  Acquisition of property                                                   
   and equipment                   (462)       (274)     (1,585)       (943)
  Acquisition of intangible                                                 
   assets                          (411)        (91)     (1,040)       (494)
  Acquisition of business             -           -     (12,730)          - 
  Purchase of short term                                                    
   investments                        -           -           -     (22,432)
  Maturity of short term                                                    
   investments                        -       7,071           -      31,490 
                            ------------------------------------------------
                                   (873)      6,706     (15,355)      7,621 
                            ------------------------------------------------
                                                                            
Financing Activities                                                        
  Initial formation                                                         
   contribution by non-                                                     
   controlling interest in                                                  
   DW-HFCL                            -           -           -         555 
  Capital lease obligation         (809)          -        (809)          - 
  Debt facility                       -           -      15,000           - 
  Deferred financing cost             -           -      (1,192)          - 
  Issuance of common shares                                                 
   net of issuance costs             26         106         129         450 
                            ------------------------------------------------
                                   (783)        106      13,128       1,005 
                            ------------------------------------------------
                                                                            
Effect of foreign exchange                                                  
 on cash and cash                                                           
 equivalents                        678        (112)       (131)       (204)
                                                                            
Net increase (decrease) in                                                  
 cash and cash equivalents       (7,142)     (4,255)    (16,354)    (19,892)
                                                                            
Cash and cash equivalents at                                                
 beginning of period             43,586      62,182      52,798      77,819 
                                                                            
                            ------------------------------------------------
Cash and cash equivalents at                                                
 end of period                   36,444      57,927      36,444      57,927 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
Cash paid during the period                                                 
 for interest                       579           -         592           - 
                            ------------------------------------------------
                            ------------------------------------------------

Contacts:
Investor Contact:
John Lawlor
VP, Investor Relations
DragonWave Inc.
[email protected]
613-895-7000

Media Contact:
Nadine Kittle
Marketing Communications
DragonWave Inc.
[email protected]
613-599-9991 ext 2262

Becky Obbema
Interprose Public Relations
(for DragonWave)
[email protected]
(408) 778-2024

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
"We view the cloud not as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo (http://www.CloudComputingExpo.com), held June 7-9 at the Javits Center in New York City, NY.
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.