Company Update (NASDAQ:DRWI): Saudi Telecom Company (STC) Selects DragonWave, Inc.(USA) to Support Enterprise Network Expansion

DragonWave, Inc.(USA) (NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, announced Saudi Telecom Company (STC), the largest network operator in the Kingdom of Saudi Arabia, has entered into a supply agreement for DragonWave products to support its enterprise network expansion. STC has ordered Horizon Compact+ and Harmony Enhanced high capacity microwave products in its aggressive network expansions.DragonWave's agreement with STC was made in partnership with Creative Telecom Company (CTC) and Waseela For technology consultations (Waseela), who will provide local integration services.

As a leading telecom provider in the Middle East, and with an international footprint that extends to 8 countries, STC is focused on its strategy to be the broadband operator of choice, offering ubiquitous access, converged offerings and innovative content and applications.

"Being a customer centric organization, delivering on our commitment to our customers is our primary consideration when making provisioning decisions to support our growing network," said STC's Senior Vice President for the Enterprise Business Unit Dr. Tarig Enaya. "The integration of DragonWave's industry-leading microwave backhaul solutions supports our growth strategy and ensures that our enterprise end-user customers continue to receive the best in service quality and reliability."

The Horizon Compact+ and Harmony Enhanced products, equipped with the DragonWave Bandwidth Accelerator, achieve industry-leading spectral efficiency, allowing STC to maximize the capacity achievable in the scarce backhaul spectrum. The low latency of the DragonWaveproducts enables a complete suite of services including high quality voice and video. In addition, Horizon and Harmony products support 256AES encryption options to maximize network security.

"STC is a visionary company committed to delivering the quality of service that continues to drive its network growth, while maintaining tier-one carrier grade services" said Peter AllenDragonWave President and CEO. "It is rewarding to be selected as the microwave supplier to STC, in confirmation that our products meet their very high performance standards and that we are contributing to their ongoing expansion and business success."

About STC

The Saudi Telecommunication Group provides integrated mobile, fixed and broadband communications services to over 100 million customers globally. Headquartered in Riyadh, Saudi Arabia, Saudi Telecom Company (STC) is the largest telecommunications company by market capitalization, total revenue and number of employees in the Arab State region. STC has gone beyond its local borders to the international markets, forming a network of businesses and investments in a number of GCC countries, Asia and Africa(Original Source)

Shares of Dragonwave closed yesterday at $0.57 . 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 $0.72 and it's 200-day moving average is $0.95.

On the ratings front, TD Securities analyst Scott Penner maintained a Hold rating on DRWI, with a price target of $1.50, The current price targetimplies an upside of 163.2% from current levels, In a report issued on January 13. The current price targetimplies an upside of 163.2% from current levels

According to, Penner has a total average return of -11.6%, a 0.0% success rate, and is ranked #3056 out of 3568 analysts.

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

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