"Our third quarter revenue performance was disappointing, as operating challenges did not allow us to continue to make the progress that we have been achieving up to this point." said CEO Peter Allen. "With stronger backlog, we remain focused on eliminating these challenges in Q4, and restoring progress on our renewal and restructuring strategy to improve revenue and margin."
DragonWave will work with regionl partner Trans Industrias Electronicas to replace legacy TDM radios with Harmony Trunk radios to support LTE deployment.
The Harmony Trunk is a hybrid solution allowing operators to move from full TDM to full IP and hybrids in between using software configuration. It offers fitting high capacity, long reach and all-indoor capabilities to support backhaul scalability needed, the company says.
Microwave radio supplier DragonWave (DRWI +2.8%) is up after again pointing to successes with its Harmony radios, noting today that it's finished 10 successful trials with its Harmony Enhanced MC product.
That microwave system operates with smaller antennas than a traditional one, but doubles capacity.
Eight customers are showing demand (and order activity), including "a Tier 1 carrier, enterprise end-users and distributors," the company says.
Production shipments begin this quarter and will ramp during the next (fourth) fiscal quarter.
Shares have gotten steady small boosts with contract wins lately, but got their big move (up 47.1% in a day) last week after being chosen to take part in Sprint's network optimization.
The company's local partner there, CommTel Network Solutions, will use DragonWave's Harmony Radio links and Hub 800 switches as part of the upgrade for Australia's "leading telecom and information services company."
The Harmony solution will let the company easily swap out radios without extensive re-cabling, CommTel chief Robert Green says, and establishes a "scalable network solution with features that can support future network evolution."
The radio supplier says its microwave backhaul equipment will be part of Sprint's densification and optimization strategy, chosen because of strong security as well as dual-channel capability and "industry-leading" system gain.
"Microwave backhaul is a cost-efficient, reliable alternative when used in the right ring structures," says Sprint's Gunther Ottendorder, COO of Technology. "And it's a key part of the extension of our overall toolkit as we work to provide customers with more consistent coverage, better reliability, and even faster data speeds."
The postmarket quote of $3.55 would be the highest point the stock reached since Aug. 2.