DragonWave, Inc. (USA) (DRWI) Shares Sink on Disappointing Earnings


DragonWave, Inc. (USA) (NASDAQ:DRWI) investors are wildly disappointed today amid the company’s fiscal first-quarter results. The microwave technology firm reported q1 revenue of $9.0 million, compared to $12.5 million for the same period in 2016 (down 28%).

Net loss attributable to shareholders in the first quarter of fiscal year 2018 was ($4.3) million or ($0.52) per basic and diluted share, compared to ($4.1) million or ($1.23) per basic and diluted share for the same period in 2016.

Adding fuel to fire, CEO Peter Allen said, “At the end of May we communicated that we had engaged Alvarez & Marcel Canada ULC to advise us with the identification and assessment of strategic alternatives in relation to short term liquidity and difficult operating conditions. We are pursuing what has emerged from this work, and expect to be able to report on the forward plan in the near term.”

Shares of Dragonwave are currently trading at $0.935, down $0.155 or -14.18%. DRWI has a 1-year high of $6.83 and a 1-year low of $0.65. The stock’s 50-day moving average is $0.87 and its 200-day moving average is $1.38.

On the ratings front, H.C. Wainwright analyst Kevin Dede reiterated a Buy rating on DRWI, with a price target of $4.00, in a report issued on April 3. The current price target implies an upside of 344% from current levels. According to TipRanks.com, Dede has a yearly average loss of 8.7%, a 42% success rate, and is ranked #4216 out of 4600 analysts.

DragonWave, Inc. engages in the development and provision of packet microwave solutions. The company offers mobile backhaul, small cell networks, intelligence networks, infrastructure monitoring, last-mile fiber extension, and rural cellular backhaul services. Its products include hybrid microwave, small cell solutions, network management, and packet microwave.