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.
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.
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, 500.com, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
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
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.
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, 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.
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.
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, 5:09 PM
Mon, Jan. 12, 5:35 PM
Nov. 25, 2014, 9:24 AM
- A tier-1 North American mobile carrier has placed over $10M worth of orders for DragonWave's (NASDAQ:DRWI) Horizon Compact+ and Horizon Quantum wireless backhaul systems to support the expansion of its 4G network.
- DragonWave notes over half the orders are tied to engineering planning/installation services. "These contracts represent a significant increase in our services business," says CEO Peter Allen.
- DragonWave rallied three weeks ago after announcing a Peruvian deal.
Nov. 5, 2014, 3:08 PM
- Peruvian Wi-Fi service provider WIGO is using DragonWave's (NASDAQ:DRWI) Horizon Quantum and Compact+ microwave radios to interconnect base stations and MPLS routing nodes on its network. (PR)
- The announcement comes two weeks after DragonWave disclosed it had received follow-on orders from a major Indian carrier.
Oct. 8, 2014, 5:40 PM
- Though it missed FQ2 EPS estimates and only slightly beat on revenue, DragonWave (NASDAQ:DRWI) is guiding for FQ3 revenue to be up 20%-30% Q/Q. That puts it in a range of $45.5M-$49.3M, soundly above a $41.1M consensus.
- The "Nokia channel" accounted for 60% of FQ2 sales vs.61% in FQ1. One other customer (not named) also accounted for over 10% of revenue.
- Gross margin was 15.5%, up from 11% a year ago but down from 20.5% in FQ1 and driving the EPS miss. GM would've been 18.8% if not for a $1.2M inventory charge. GAAP opex fell 2% Y/Y to $12.2M.
- Thanks to a recent stock/warrant offering, the mobile backhaul equipment vendor ended FQ2 with $33.6M in cash, up from $15.6M at the end of FQ1.
- FQ2 results, PR
Oct. 8, 2014, 5:05 PM
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