OTTAWA, CANADA — (Marketwire) — 01/11/12 — DragonWave Inc. (TSX: DWI)(NASDAQ: DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for the third quarter of fiscal year 2012, ended November 30, 2011. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.
Revenue for the third quarter of fiscal year 2012 was $11.8 million, compared with $13.6 million in the second quarter of fiscal year 2012 and $27.0 million in the third quarter of fiscal year 2011. Revenue from customers within North America was $8.2 million, compared with $11.8 million in the second quarter of this fiscal year and $22.8 million in the third quarter of fiscal year 2011. DragonWave had two customers who each contributed more than 10% of revenue in the third quarter.
Gross margin for the third quarter of fiscal year 2012 was 41%, compared with 42% in the second quarter of fiscal year 2012 and 48% in the third quarter of fiscal year 2011. Net and comprehensive loss applicable to shareholders in the third quarter of fiscal year 2012 was $8.0 million or ($0.23) per diluted share. This compares to a net and comprehensive loss applicable to shareholders of $2.2 million or ($0.06) per diluted share in the second quarter of fiscal year 2012 and net loss of $0.04 million, which equated to ($0.00) per diluted share in the third quarter of fiscal year 2011.
“We took a major step forward in our global diversification and growth strategy this quarter through the transformational comprehensive agreements we announced jointly with Nokia Siemens Networks, including our plans to acquire NSN-s microwave transport business,” said DragonWave President and CEO Peter Allen. “This strategic relationship with NSN will further strengthen our market-leading product and technology base and substantially expand opportunities with major mobile operators throughout the world. We continue to expect the planned acquisition to close in the first quarter of calendar 2012.”
Cash, cash equivalents, restricted cash, and short-term investments totaled $60.2 million, compared to $71.6 million at the end of the second quarter of fiscal year 2012, and $89.7 million at the end of the fourth quarter of fiscal year 2011.
Revenue for the first nine months of fiscal year 2012 was $36.5 million, compared to $102.9 million for the same period of fiscal year 2011. Net and comprehensive loss applicable to shareholders for the first nine months of fiscal year 2012 was $20.1 million or ($0.57) per diluted share, compared to net and comprehensive income applicable to shareholders of $10.9 million or $0.29 per diluted share for the first nine months of fiscal year 2011.
Revenue Outlook for Fourth Quarter Fiscal Year 2012
DragonWave expects revenue for the fourth quarter of fiscal year 2012 to be in the range of $12.0 million to $15.0 million. This does not include any revenue from the planned acquisition of NSN-s microwave transport business, as the precise closing date of the acquisition has not yet been determined.
Webcast and Conference Call Details:
The DragonWave management team will discuss the results on a webcast and conference call beginning at 8:30 a.m. Eastern Time tomorrow, January 12, 2012.
The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at:
An archive of the webcast will be available at the same link.
Conference call dial-in numbers:
About DragonWave
DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave-s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave-s products is wireless network backhaul. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave-s corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit .
DragonWave® is a registered trademark of DragonWave Inc.
Forward-Looking Statements
Certain statements in this release, including the estimate of the revenue range for the fourth quarter of fiscal year 2012 and the statements regarding the proposed transactions involving Nokia Siemens Networks (the “NSN Transactions”), constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. These statements are subject to certain assumptions, risks and uncertainties. Material factors and assumptions used to develop revenue estimates include DragonWave-s expectations regarding: the network deployment plans of its existing and new customers, and the volume and timing of orders, shipments and revenue recognition. Material factors and assumptions relating to the NSN Transactions include the parties- beliefs regarding the industry and markets in which the parties operate; successful completion of the proposed transaction; expectations regarding potential synergies and prospects for the business if the transaction is closed. The NSN Transactions are subject to risks, including: the risks that the parties will not proceed with the transactions for any reason; that the ultimate terms of the transactions will differ from those that are currently contemplated; that if the transactions are completed, that expected synergies will not materialize; that unexpected costs will be incurred to integrate the business; or that end-customer demand will not meet expectations. In particular, the completion of the NSN Transactions is subject to a number of terms and conditions, including, without limitation, no occurrence of a material adverse effect. These conditions to the transaction may not be satisfied, in which case the NSN Transactions could be modified, restructured or terminated. Material risks and uncertainties following closing of the NSN Transactions are described under the heading “Risks and Uncertainties” in the MD&A dated January 11, 2012 and on pages 20 and 21 of the Company-s Annual Information Form, dated May 4, 2011.
Readers are cautioned not to place undue reliance on forward-looking statements. These statements are provided to assist external stakeholders in understanding DragonWave-s expectations as of the date of this release and may not be appropriate for other purposes. Actual results, performance, achievements or developments of DragonWave may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors, in addition to those detailed above, that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in DragonWave-s Annual Information Form dated May 4, 2011 and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at and , respectively, and include the following:
DragonWave assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether because of new information, future events or otherwise, except as expressly required by law.
Contacts:
John Lawlor
VP, Investor Relations
DragonWave Inc.
613-895-7000
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