Stock Update (NASDAQ:DRWI): DragonWave, Inc. Reports Fourth Quarter and Full Fiscal Year 2015 Results


DragonWave, Inc. (USA) (NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for the fourth quarter and full fiscal year 2015 ended February 28, 2015. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Revenue for the fourth quarter of fiscal year 2015 was $43.7 million, compared with $47.3 million in the third quarter and $17.9 million in the fourth quarter of the prior fiscal year. Revenue through the Nokia channel represented 46% of total revenue in the fourth quarter fiscal year 2015, versus 50% in the third quarter and 68% in fourth quarter of fiscal year 2014.

Gross profit margin was 19.4% for the fourth quarter of fiscal year 2015, compared with 16.3% in the third quarter and 14.5% in the fourth quarter of the prior fiscal year.

Net loss applicable to shareholders in the fourth quarter of fiscal year 2015 was ($2.3) million or ($0.03) per basic and diluted share. This compares to a net loss applicable to shareholders of ($3.8) million or ($0.05) per basic and diluted share in the third quarter of fiscal year 2015 and ($11.6) million or ($0.20) per basic and diluted share in the fourth quarter of fiscal year 2014.

“We are pleased with the significant progress in our Q4 results which were within $1 million of break-even Adjusted Cashflow from Operations, despite uneven timing of equipment orders and installation services revenue,” said DragonWave President and CEO Peter Allen. “As we look forward, we 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. Within this we expect revenue in Q1 to be in the $30 to $33 million range.”

See “Non-GAAP Financial Measures” below for a reconciliation of Adjusted Cashflow from Operations to the most directly comparable measure calculated in accordance with GAAP and presented in DragonWave’s financial statements.

Cash and cash equivalents totaled $23.7 million at the end of the fourth quarter of fiscal year 2015, compared to $29.5 million at the end of the third quarter, and $19.0 million at the end of the fourth quarter of fiscal year 2014.

Revenue for the full fiscal year 2015 was $157.8 million, compared with $90.0 million for the prior fiscal year. Net loss applicable to shareholders for the full fiscal year was ($21.5) million or ($0.32) per basic and diluted share, compared with ($34.2) million or ($0.83) per basic and diluted share in the prior fiscal year. (Original Source)

Shares of Dragonwave closed today at $0.66, down $0.0118 or 1.76%. DRWI has a 1-year high of $2.55 and a 1-year low of $0.54. The stock’s 50-day moving average is $0.68 and its 200-day moving average is $0.87.

On the ratings front, TD Securities analyst Scott Penner maintained a Hold rating on DRWI, with a price target of $1.50, in a report issued on January 13. The current price target represents a potential upside of 127.3% from where the stock is currently trading. According to TipRanks.com, Penner has a total average return of -8.1%, a 0% success rate, and is ranked #2974 out of 3599 analysts.

DragonWave Inc is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. Its products are wireless network backhaul.