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DragonWave Inc. (DRWI)

- NASDAQ
  • Yesterday, 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.
    | Yesterday, 5:17 PM | 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!
  • 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!
  • 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!
  • 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!
  • 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!
  • 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!
  • Tue, Jan. 13, 5:09 PM
    • Dragonwave (NASDAQ:DRWI): Q3 EPS of -$0.05 in-line.
    • Revenue of $47.3M (+113.4% Y/Y) beats by $1.13M.
    • Shares +6.9% AH.
    • Press Release
    | Tue, Jan. 13, 5:09 PM | 1 Comment
  • Mon, Jan. 12, 5:35 PM
  • 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, 5:40 PM | 1 Comment
  • Oct. 8, 2014, 5:05 PM
    • Dragonwave (NASDAQ:DRWI): FQ2 EPS of -$0.14 misses by $0.06.
    • Revenue of $37.9M (+48.9% Y/Y) beats by $0.85M.
    • Press Release
    | Oct. 8, 2014, 5:05 PM | Comment!
  • Jul. 9, 2014, 5:51 PM
    • DragonWave (DRWI) expects FQ2 revenue to be up 25%-40% Q/Q in FQ2. That spells a range of $36M-$40M, soundly above a $34M consensus.
    • Gross margin rose to 20.5% in FQ1 from 14.5% in FQ4 and 11.5% a year ago. Opex -10% Y/Y to $12.1M.
    • The "Nokia channel" accounted for 61% of revenue vs. 68% in FQ4 and 57% a year ago. Cash/equivalents fell to $15.6M at the end of FQ1 from $19M at the end of FQ4.
    • FQ1 results, PR
    | Jul. 9, 2014, 5:51 PM | 1 Comment
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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