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Thu, Jan. 28, 11:48 AM| Thu, Jan. 28, 11:48 AM | 3 Comments
Fri, Jan. 22, 3:30 PM
- Plenty of tech names crushed over the first 20 days or so of January are sharply higher as the Nasdaq (up 2.4%) continues rebounding from Wednesday's intraday lows. Many still have sizable YTD losses.
- Big gainers among telecom equipment/component firms: Optical component vendors Oclaro (OCLR +9.5%) and NeoPhotonics (NPTN +6%), mobile infrastructure/services giant Ericsson (ERIC +6.2%), optical networking hardware vendor Infinera (INFN +5.2%), and microcap RF backhaul hardware firms DragonWave (DRWI +24.3%) and Ceragon (CRNT +10%). Ericsson underperformed yesterday following a pre-earnings Goldman downgrade.
- Among enterprise tech firms: Threat-prevention technology and services provider FireEye (FEYE +7.7%), big data software provider Hortonworks (HDP +16.1%), security software/services firm Rapid7 (RPD +9.1%), data governance software firm Varonis (VRNS +5.6%), and flash storage array vendor Violin Memory (VMEM +13.6%). FireEye fell slightly yesterday after making a Q4 pre-announcement and announcing a $200M+ acquisition. Hortonworks was crushed on Tuesday after a Q4 pre-announcement and stock offering shelf registration.
- Among chip industry firms: RF chipmaker Skyworks (SWKS +6%), audio codec developer Cirrus Logic (CRUS +7.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +6.5%), FPGA/sensor hub maker QuickLogic (QUIK +9.2%), and chip equipment firms Axcelis (ACLS +4.9%) and Aixtron (AIXG +4.9%). Major Cirrus/Skyworks client Apple reports on Tuesday afternoon.
- Also up big: 3D printer maker 3D Systems (DDD +7.1%), Russian search leader Yandex (YNDX +7.5%), mortgage origination software firm Ellie Mae (ELLI +6.4%), Chinese solar firm Yingli (YGE +11.4%), and SMB Web services provider Wix.com (WIX +5.3%).
- Previously covered: Rosetta Stone, Live Ventures, HP Enterprise, Mitel, Mobileye, Qorvo, SunPower, SolarCity
Wed, Jan. 13, 5:09 PM
Dec. 16, 2015, 10:20 AM
- Amid widespread solvency fears, DragonWave (NASDAQ:DRWI) has overhauled its reseller deal with Nokia (NYSE:NOK), while keeping the companies' "global frame agreements" in place.
- The specifics: 1) Nokia will remain DragonWave's main reseller channel for its Harmony Radio products. 2) DragonWave will continue providing software maintenance and hardware support to Nokia for joint product deployments. 3) The companies "may mutually agree on a case by case basis to address additional future specific customer requests of new DragonWave products through Nokia."
- The "Nokia channel" accounted for 37% of DragonWave's August quarter revenue of $26.9M, and 50% of its FQ1 revenue. The deal restructuring comes as Nokia gets set to merge with Alcatel-Lucent, a move that had stoked fears Nokia would abandon DragonWave's RF backhaul offerings for Alcatel's.
- DragonWave's market cap remains below $9M.
Dec. 4, 2015, 2:46 PM
- Beaten-down DragonWave (NASDAQ:DRWI) is up strongly on volume of 2.35M shares, soundly above a 3-month daily average of 409K. No major news has hit the wires.
- The gains come three days after the RF backhaul equipment firm announced a Jan. 26 special meeting to lay the groundwork for a reverse split. Shares -84% YTD.
Dec. 2, 2015, 10:20 AM
- DragonWave (NASDAQ:DRWI) is hosting a special meeting on Jan. 26 to approve a resolution to "consolidate" the company's common shares, and thereby allow it to maintain compliance with the Nasdaq's $1.00 minimum bid rule.
- The hard-luck mobile backhaul equipment provider's shares have fallen to $0.11. The fell as low as $0.07 last week before bouncing a little.
Nov. 23, 2015, 3:18 PM
- Following today's selloff, DragonWave's (DRWI -14.6%) market cap is down to $6.2M. 576K shares have been traded thus far, topping a 3-month daily average of 308K.
- The RF backhaul hardware firm is now valued at a fraction of the $13.1M cash balance (down $5.8M Q/Q) it had at the end of August. Shares have been hammered this year as sales shortfalls fueled solvency fears.
Oct. 15, 2015, 10:36 AM
- DragonWave (NASDAQ:DRWI) has made fresh lows after reporting FQ2 revenue that was slightly below guidance (provided in a Sep. 4 warning) of $27.5M, and down 29% Y/Y. Notably, unlike in prior quarters, no guidance was provided in the earnings release.
- The "Nokia channel" accounted for 37% of FQ2 revenue, down sharply from FQ1's 52% and the year-ago period's 60%. DragonWave insists the product issues (related to the Harmony Enhanced backhaul radio) that weighed on FQ2 sales - shipments to a major Indian client were suspended - have been resolved.
- Gross margin was 14.8% vs. 21.1% in FQ1 and 15.5% a year ago. GAAP operating expenses fell by $1.7M Y/Y to $10.5M. DragonWave's cash balance fell by $5.8M Q/Q to $13.1M. The company's market cap is currently at $11.5M.
- FQ2 results, PR
Oct. 14, 2015, 5:07 PM
- Dragonwave (NASDAQ:DRWI): FQ2 EPS of -$0.28 may not be comparable to consensus of -$0.04.
- Revenue of $26.92M (-29.0% Y/Y) misses by $11.23M.
Oct. 13, 2015, 5:35 PM
Sep. 4, 2015, 5:17 PM
- A month after warning FQ2 (August quarter) revenue would be at the low end of a prior forecast for 30%-60% Q/Q growth, DragonWave (NASDAQ:DRWI) says it now expects revenue to be up just 4% Q/Q to ~$27.5M. Consensus is at $37.3M.
- The RF backhaul hardware vendor states equipment/service orders were $3.4M lower than expected - about half of the orders are now expected in FQ3 - and that $2.8M worth of shipments didn't make the FQ2 cutoff date and slipped into FQ3. Shipments to a major Indian customer remain suspended on account of a (previously-disclosed) product issue that's said to be resolved.
- CEO Peter Allen: "Q2 has obviously been a very challenging quarter for DragonWave. We are developing the plan for moving forward and anticipate sharing that plan on our next regularly scheduled investors' call."
- Ahead of the announcement, shares fell 5% in regular trading to $0.20. They haven't yet moved after hours.
Aug. 26, 2015, 7:16 PM
- Russell Frederick, DragonWave's (NASDAQ:DRWI) CFO since 2004, is "leaving the company due to personal reasons." Patrick Houston, DragonWave's assistant VP for finance and operations, will serve as interim CFO.
- The announcement comes on a day in which DragonWave's shares closed at $0.23, leaving the company with an $18M market cap.
Aug. 13, 2015, 9:58 AM
- Ceragon (NASDAQ:CRNT) has shot higher after posting mixed Q2 results (EPS beat, revenue slightly missed) amid fairly low expectations. On its earnings call, the RF backhaul hardware vendor forecast 2H15 revenue would be similar to a 1H15 level of $188.4M; the full-year consensus is at $388.8M.
- Lifting Q2 EPS: Gross margin rose 230 bps Q/Q and 190 bps Y/Y to 28.2%. Also: Thanks to job cuts, GAAP operating expenses fell 28% Y/Y to $20.8M, after backing out year-ago other income of $16.8M.
- India was 30% of Q2 revenue, other Asia-Pac markets 10%, Latin America 22%, North America 18%, Europe 12%, and Africa 8%. Ceragon ended Q2 with $39.5M in cash (up $2.2M Q/Q), and $51M worth of short-term debt.
- Beaten-down peer DragonWave (NASDAQ:DRWI) is also higher.
- Q2 results, PR
Aug. 4, 2015, 12:40 PM
- After previously forecasting FQ2 (August quarter) revenue would rise 30%-60% Q/Q, DragonWave (NASDAQ:DRWI) now expects sales to be at the low end of that range.
- "An unexpected problem" with a deployment at a tier-1 Indian carrier is blamed. DragonWave states the problem is being corrected, but adds "the deployment is time-sensitive and has been halted." The company is "developing a plan to manage the cash flow impact and also working with the customer on the path forward."
- DragonWave, whose cash balance was down to $23.4M at the end of FQ1, has also announced job cuts that aim to save $8M/year in costs. The company is targeting quarterly opex of $8.5M (down from FQ1's $11.3M) starting in FQ3.
- DragonWave's reseller deal with Nokia has been amended to "address the impact of reduced demand being experienced through this channel in the first half of FY16 including temporary cash flow measures as well as a new commercial arrangement for Support and Maintenance services."
- CEO Peter Allen: "We are pleased that we could come to these updated arrangements with Nokia. Nokia continues to be an important part of our business and we appreciate the support." Nokia is set to merge with Alcatel-Lucent, which has its own RF backhaul line.
- Shares are once more close to $0.20.
Jul. 24, 2015, 1:45 PM
- DragonWave (NASDAQ:DRWI) has plunged to $0.25 on volume of 1.84M shares, far above a 3-month daily average of 163K. Its market cap is now at $19M.
- No major news has hit the wires yet. Liquidity concerns have been around for a long time; DragonWave's cash balance fell by $4.8M in the May quarter to $18.9M.
Jul. 8, 2015, 6:14 PM
- After missing FQ1 estimates, DragonWave (NASDAQ:DRWI) forecasts FQ2 revenue will be up 30%-60% Q/Q. That implies a range of $34.2M-$42.1M vs. a $41.8M consensus. CEO Peter Allen: "From a full year outlook perspective, the start to the year has not been as strong as expected, but we anticipate solid growth in the second half."
- Balance sheet: The RF backhaul hardware vendor ended FQ1 with $18.9M in cash, down from $23.7M at the end of FQ4 and $29.5M at the end of FQ3. Debt stood at $33.7M.
- FQ1 details: The "Nokia channel" accounted for 52% of revenue in FQ1 vs. 46% in FQ4 and 61% a year ago. Gross margin was 21.1%, +170 bps Q/Q and +60 bps Y/Y. GAAP operating expenses fell 9% Y/Y to $11M - R&D spend totaled $3.9M, G&A $3.8M, and sales/marketing $3.2M.
- Shares haven't yet moved AH.
- FQ1 results, PR
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