Company Update (NASDAQ:DRWI): DragonWave, Inc. (USA) Reports First Quarter Fiscal Year 2016 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 first quarter of fiscal year 2016. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).
Revenue for the first quarter of fiscal year 2016 was $26.3 million, compared with $43.7 million in the fourth quarter of fiscal year 2015 and$28.8 million in the first quarter of fiscal year 2015. Revenue from the Nokia channel represented 52% of revenue in the first quarter of this fiscal year, versus 46% in the fourth quarter of fiscal year 2015 and 61% in first quarter of fiscal year 2015.
Gross profit in the first quarter of fiscal year 2016 was 21.1%, compared with 19.4% in the fourth quarter of fiscal year 2015 and 20.5% in the first quarter of fiscal year 2015.
Net loss attributable to shareholders in the first quarter of fiscal year 2016 was ($6.0) million or ($0.08) per basic and diluted share. This compares to a net loss attributable to shareholders of ($2.3) million or ($0.03) per basic and diluted share in the fourth quarter of fiscal year 2015 and ($6.6) million or ($0.11) per basic and diluted share in the first quarter of fiscal year 2015.
Key achievements in the quarter include:
- DragonWave Harmony Enhanced solution selected for 3G/4G network in India;
- Scaled the manufacturing run rate of our Harmony Enhanced product in response to strong market demand;
- Received additional multi-million dollar turnkey purchase orders from pan-India broadband service provider;
- Received first small-cell order for another Tier 1 North American carrier; and
- Small cell trial activity is increasing with fifteen active trials worldwide.
“We are pleased with the increased demand as we move into our second quarter. Momentum is such that we anticipate revenue growth of between 30% and 60% in Q2 relative to Q1. 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,” said DragonWave President and CEO, Peter Allen.
Cash and cash equivalents totaled $18.9 million at the end of the first quarter of fiscal year 2016, compared to $23.7 million at the end of the fourth quarter of fiscal year 2015. (Original Source)
Shares of Dragonwave closed today at $0.496, down $0.016 or 3.13%. DRWI has a 1-year high of $2.55 and a 1-year low of $0.50. The stock’s 50-day moving average is $0.57 and its 200-day moving average is $0.73.
DragonWave Inc is a provider of high-capacity packet microwave solutions that drive next-generation IP networks. Its products are wireless network backhaul equipment.