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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!
  • 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
  • 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, Apr. 7, 1:44 PM
    • Top Saudi carrier STC has ordered DragonWave's (NASDAQ:DRWI) Compact+ and Harmony RF backhaul systems to help expand its enterprise network.
    • DragonWave claims Compact+/Harmony deliver industry-leading spectral efficiency (aided by the company's Bandwidth Accelerator tech), and notes the systems support 256AES encryption.
    • After starting the day with moderate gains, DragonWave's beaten-down shares have flown higher. They closed yesterday only $0.03 above a 52-week low of $0.54.
    | Tue, Apr. 7, 1:44 PM | Comment!
  • Wed, Mar. 18, 3:05 PM
    • Today's notable tech gainers include data protection software vendor Imperva (IMPV +3.5%), supercomputer maker SGI (SGI +5.3%), analog/mixed-signal chipmaker MagnaChip (MX +6.1%), enterprise cloud healthcare software vendor Castlight (CSLT +7.6%), program guide/content protection IP provider Rovi (ROVI +5.8%), cloud contact center software vendor Zendesk (ZEN +5%), and Web site owner Demand Media (DMD +4.6%). The Nasdaq is up 0.8% following Janet Yellen's market-pleasing remarks.
    • Notable decliners include Chinese EV maker Kandi (KNDI -3.4%), RF backhaul hardware maker DragonWave (DRWI -7.6%), NAND flash controller/4G RF transceiver maker Silicon Motion (SIMO -3.2%), and online money transfer provider Xoom (XOOM -4.9%).
    • Castlight is now up 13% from Friday's close. Rovi, rumored to be weighing strategic options, is two days removed from naming a new sales chief and announcing a licensing deal with Sharp. Kandi has now given back the big Monday gains it saw after posting Q4 results.
    • Xoom's losses are likely tied to Facebook's launch of a money transfer service for Messenger users; Facebook isn't charging any fees for now.
    • Previously covered: Adobe, Wix, Microsemi/Vitesse, Pandora,, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
    | Wed, Mar. 18, 3:05 PM | 2 Comments
  • Wed, Mar. 11, 3:08 PM
    • A day after equity markets tumbled (with many high-beta names especially hard-hit), major tech gainers are outnumbering major decliners, though the Nasdaq is nearly flat.
    • Today's notable tech gainers include RF backhaul hardware vendors DragonWave (DRWI +15.6%) and Aviat (AVNW +8%), LED lighting provider Revolution Lighting (RVLT +5.4%) online textbook rental/learning services provider Chegg (CHGG +3.8%), auto site TrueCar (TRUE +5.3%), loan-shopping site owner Lendingtree (TREE +6.9%), telecom equipment vendor Calix (CALX +2.7%), TV/set-top SoC provider Sigma Designs (SIGM +4.9%), and VoIP hardware/software provider Mitel (MITL +3.8%).
    • Notable decliners include supercomputer maker SGI (SGI -2.9%), 3D printing software vendor Materialise (MTLS -5.5%), security hardware/software provider KEYW Holding (KEYW -2.9%), and Chinese online game developer Changyou (CYOU -2.9%).
    • DragonWave and Aviat are reversing yesterday's big losses. Materialise is making fresh 52-week lows a week after posting mixed Q4 results; KEYW is also seeing new 52-week lows. Revolution's gains continue a volatile post-earnings ride: Shares soared last week after the company posted its Q4 results, but gradually gave back their gains.
    • Previously covered: SanDisk, Intel, EMC, SunEdison, Resonant, Immersion, Logitech, VeriFone, Mobileye, Dangdang, InvenSense
    | Wed, Mar. 11, 3:08 PM | Comment!
  • Tue, Mar. 10, 3:57 PM
    • After posting more moderate declines for much of the day, DragonWave (NASDAQ:DRWI) has nosedived in afternoon trading. Volume (819K shares) is over 2x a 3-month daily average of 323K.
    • RF backhaul hardware peer Aviat (NASDAQ:AVNW) is also off sharply. Its volume (116K) shares is below a 3-month daily average of 157K.
    • DragonWave is just five days removed from providing an FQ4 warning; shares fell only slightly after the announcement. Aviat jumped last week after announcing job cuts.
    | Tue, Mar. 10, 3:57 PM | 6 Comments
  • Thu, Mar. 5, 7:40 AM
    • DragonWave (NASDAQ:DRWI) sees Q4 revenue of $44M vs. $52M consensus.
    • Sees FY revenue of $158M vs. $161M consensus.
    • "Revenue is lower than expected because of the uneven timing of installation services revenue, shipments that did not make the Q4 cut off, and delays in equipment orders, which are now expected to be received in fiscal year 2016."
    • Shares -3.4% premarket.
    • Source: Press Release
    | Thu, Mar. 5, 7:40 AM | Comment!
  • Thu, Feb. 19, 11:16 AM
    • DragonWave (NASDAQ:DRWI) states its small cell wireless backhaul product line has seen several customer wins/trials.
    • A major Asian carrier "has begun volume deployments" of small cells relying on DragonWave's Avenue Link systems for backhaul, and a major Russian carrier is using its Harmony Eband products (works on more lightly-licensed high-frequency spectrum) to deploy a new small cell network. DragonWave is also "jointly engaged in small-cell field trials with mobile operators in Europe and Latin America."
    • Though still in its early stages, the small cell market has been growing rapidly, as carriers deploy the short-range base stations to handle surging mobile data traffic in high-density/space-constrained urban locales.
    | Thu, Feb. 19, 11:16 AM | Comment!
  • Fri, Jan. 30, 4:41 PM
    • Though Aviat (NASDAQ:AVNW) beat FQ2 estimates, it's guiding for FQ3 revenue of $75M-$80M, well below a three-analyst $92.2M consensus. That led shares to drop 7.9% today to $1.28.
    • The RF backhaul hardware vendor says it expects "lower revenue in North America following higher than anticipated revenue contribution in the second quarter of fiscal 2015," and doesn't expect an African recovery until later in FY15.
    • North American revenue rose 31% Y/Y in FQ2 to $44.2M; international revenue fell 7% to $48.3M. Aviat's cash balance fell by $3.7M Q/Q to $38.7M.
    • Peers followed Aviat lower: DragonWave (NASDAQ:DRWI) fell 4.7% to $0.80 and Ceragon (NASDAQ:CRNT) fell 5.1% to $0.88. Both companies made new 52-week lows.
    | Fri, Jan. 30, 4:41 PM | Comment!
  • Wed, Jan. 14, 12:28 PM
    • Up in AH trading yesterday after beating FQ3 revenue estimates (while posting in-line EPS) and guiding in-line DragonWave (NASDAQ:DRWI) is now off sharply.
    • Shares are $0.06 above a 52-week low of $0.88, and trade for only 0.3x estimated FY16 (ends Feb. '16) sales.
    | Wed, Jan. 14, 12:28 PM | 2 Comments
  • Tue, Jan. 13, 6:10 PM
    • DragonWave (NASDAQ:DRWI) CEO Peter Allen: "As we look forward, we believe that we have the opportunity in Q4 to again have sequential revenue growth of up to 10%." 10% Q/Q growth would yield revenue of $52M, matching consensus.
    • FQ3 gross margin was 16.3%, up from 15.5% in FQ2 and 11.1% a year ago. GAAP opex fell by $400K Y/Y to $12.2M. The "Nokia channel" accounted for 50% of revenue, down from 60% in FQ2 and 51% a year ago.
    • The RF backhaul hardware vendor ended FQ3 with $29.5M in cash, down from $33.6M at the end of FQ2. Long-term debt totaled $26.6M, and warrant liability $2.2M.
    • DRWI +1% AH. FQ3 results, PR.
    | Tue, Jan. 13, 6:10 PM | Comment!
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