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DragonWave Inc. (DRWI)

  • Mon, Nov. 23, 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.
    | Mon, Nov. 23, 3:18 PM | Comment!
  • Thu, Oct. 15, 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
    | Thu, Oct. 15, 10:36 AM | Comment!
  • Wed, Oct. 14, 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.
    • Press Release
    | Wed, Oct. 14, 5:07 PM | Comment!
  • Tue, Oct. 13, 5:35 PM
  • Fri, Sep. 4, 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.
    | Fri, Sep. 4, 5:17 PM | 1 Comment
  • Wed, Aug. 26, 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.
    | Wed, Aug. 26, 7:16 PM | 3 Comments
  • Thu, Aug. 13, 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
    | Thu, Aug. 13, 9:58 AM | Comment!
  • Tue, Aug. 4, 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.
    | Tue, Aug. 4, 12:40 PM | Comment!
  • Fri, Jul. 24, 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.
    | Fri, Jul. 24, 1:45 PM | 2 Comments
  • Wed, Jul. 8, 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
    | Wed, Jul. 8, 6:14 PM | Comment!
  • Wed, Jul. 8, 5:03 PM
    • Dragonwave (NASDAQ:DRWI): FQ1 EPS of -$0.08 misses by $0.01.
    • Revenue of $26.34M (-8.4% Y/Y) misses by $3.31M.
    • Press Release
    | Wed, Jul. 8, 5:03 PM | Comment!
  • Thu, Jun. 4, 1:00 PM
    • An unnamed Indian telecom/broadband service provider has placed follow-on orders for DragonWave's (DRWI +0.6%) Horizon Compact+ RF backhaul systems. The DragonWave HFCL Indian JV will provide related services.
    • Last year, DragonWave inked a framework agreement with an Indian carrier to provide several thousand Horizon Compact+ backhaul links to support the carrier's 4G rollout.
    | Thu, Jun. 4, 1:00 PM | 3 Comments
  • Wed, May 13, 2:57 PM
    • DragonWave (NASDAQ:DRWI) has tumbled after providing weak FQ1 guidance to go with an FQ4 beat yesterday afternoon.
    • With liquidity concerns an issue - the cash balance fell by $5.8M Q/Q in FQ4 to $23.7M - shares now trade for only 0.3x FY14 revenue of $157.8M.
    | Wed, May 13, 2:57 PM | Comment!
  • Tue, May 12, 6:34 PM
    • Though it beat FQ4 estimates, DragonWave (NASDAQ:DRWI) is guiding for FQ1 revenue of $30M-$33M, well below a 2-analyst $43.3M consensus.
    • CEO Peter Allen: "[W]e expect double-digit year-over-year revenue growth in fiscal year 2016 and the strongest contribution to revenue growth in fiscal year 2016 is expected to come from expanding direct business with current and new Tier one mobile operators." The FY16 (ends Feb. '16) revenue growth consensus is currently at 31.4%.
    • Financials: Gross margin rose to 19.4% from FQ3's 16.3% and the year-ago period's 14.5%. GAAP operating expenses fell by $500K Y/Y to $11.3M. The "Nokia channel" accounted for 46% of FQ4 sales. DragonWave ended FQ4 with $23.7M in cash (down from $29.5M at the end of FQ3), $32.4M in debt, and a $1.2M warrant liability.
    • For now DragonWave is down just 1.5% AH to $0.659. A lot of bad news has already been priced in.
    • FQ4 results, PR
    | Tue, May 12, 6:34 PM | Comment!
  • Tue, May 12, 5:04 PM
    • Dragonwave (NASDAQ:DRWI): FQ4 EPS of -$0.03 beats by $0.02.
    • Revenue of $43.7M (+144.7% Y/Y) beats by $1.51M.
    • Press Release
    | Tue, May 12, 5:04 PM | Comment!
  • Sat, Apr. 18, 8:04 PM
    • Nokia (NYSE:NOK) and Alcatel-Lucent's (NYSE:ALU) planned merger could unravel Nokia's R&D partnership/reseller deal with Juniper (NYSE:JNPR). Juniper, which has partnered with Nokia on solutions that pair the former's routers with the latter's base stations and mobile core network gear, counts Alcatel as its second-biggest rival (after Cisco) in the carrier router market, and also squares off against the company in other markets such as carrier SDN software.
    • Ruckus (NYSE:RKUS) is another Nokia partner that could be in the crosshairs: The company competes against Alcatel in carrier Wi-Fi hardware, and has a reseller deal with Nokia that goes back to 2012. The deal was recently expanded to cover Wi-Fi/4G small cell systems.
    • At the same time, the merger has fueled speculation one or more rivals could respond with acquisitions of their own. A potential acquisition of Juniper by mobile infrastructure giant Ericsson (NASDAQ:ERIC) has especially been the subject of much talk.
    • Ericsson is also viewed as a potential suitor for optical networking hardware vendors/fellow Alcatel rivals Ciena and Infinera. Ruckus has been seen as a potential M&A target for a long time. However, it currently competes against Ericsson, which bought Wi-Fi hardware vendor BelAir Networks in 2012.
    • RF backhaul hardware maker DragonWave (NASDAQ:DRWI) could also lose business thanks to the merger; it bought Nokia's RF backhaul business in 2012. and maintains a reseller deal. However, H.C. Wainwright recently downplayed those concerns, arguing Alcatel's RF backhaul systems are expensive and clunky.
    • Juniper and Ericsson report earnings on April 23, and Ruckus on April 30.
    | Sat, Apr. 18, 8:04 PM | 16 Comments
Company Description
DragonWave Inc is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. Its products are wireless network backhaul equipment.
Sector: Technology
Country: Canada