Welcome!

News Feed Item

DragonWave Inc. Reports Fourth Quarter and Full Fiscal Year 2014 Results

OTTAWA, CANADA -- (Marketwired) -- 05/14/14 -- 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 fourth quarter and full fiscal year ended February 28, 2014. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.

Revenue for the fourth quarter of fiscal year 2014 was $17.9 million, compared with $22.2 million in the third quarter of this fiscal year and $28.3 million in the fourth quarter of the prior fiscal year. Revenue from the Nokia channel (formerly called Nokia Solutions and Networks) represented 68% of revenue in the fourth quarter of this fiscal year, versus 51% in the third quarter of this fiscal year and 61% in fourth quarter of the prior fiscal year.

Gross margin for the fourth quarter of fiscal year 2014 was 14.5%, compared with 11.1% in the third quarter of this fiscal year and 5.3% in the fourth quarter of fiscal year 2013.

Net loss applicable to shareholders in the fourth quarter of fiscal year 2014 was $11.6 million or ($0.20) per basic and diluted share. This compares to a net loss applicable to shareholders of $5.5 million or ($0.12) per basic and diluted share in the third quarter of this fiscal year and a net loss applicable to shareholders of $27.2 million or ($0.71) per basic and diluted share in the fourth quarter of fiscal year 2013.

"We are deep into the first quarter of fiscal year 2015, and we see an inflection in demand which allows me to anticipate Q1 revenue growth of approximately 50% over Q4 fiscal year 2014." said DragonWave President and CEO Peter Allen. "I am pleased that there are contributions to this growth from both the Nokia channel and our direct business, and the funnel for both is improving."

Cash and cash equivalents totaled $19.0 million at the end of the fourth quarter of fiscal year 2014, compared to $23.5 million at the end of the third quarter, and $23.0 million at the end of the fourth quarter of fiscal year 2013.

Revenue for the full fiscal year 2014 was $90.0 million, compared with $123.9 million for the prior fiscal year. Net loss applicable to shareholders for the full fiscal year 2014 was $34.2 million or ($0.83) per basic and diluted share, compared with a net loss applicable to shareholders of $54.7 million or ($1.46) per basic and diluted share in the prior fiscal year.

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 on May 15, 2014.

The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at: http://investor.dragonwaveinc.com/events.cfm

An archive of the webcast will be available at the same link.

Conference call dial-in numbers:

Toll-free North America Dial-in: (877) 312-9202

International Dial-in: (408) 774-4000

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, including a range of products ideally suited to support the emergence of underlying small cell networks. 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 http://www.dragonwaveinc.com.

DragonWave® and Horizon® are registered trademarks of DragonWave Inc.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to DragonWave's growth opportunities and the potential benefits of, and demand for, DragonWave's products, as well as our expectations regarding Q1 FY2015 revenues and the funnel for both direct sales and the Nokia channel. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of DragonWave's products compared to competitive offerings in the industry, the timing of orders and deliveries, revenues and expenses, and constraints in the supply chain. Readers are cautioned not to place undue reliance on such statements. DragonWave's actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors 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 the public documents filed by DragonWave with U.S. and Canadian securities regulatory authorities. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Forward-looking 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. Material risks and uncertainties relating to our business are described under the heading "Risks and Uncertainties" in the MD&A dated May 14, 2014 and in the Company's Annual Information Form and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively.

CONSOLIDATED BALANCE SHEETS                                                 
Expressed in US $000's except share amounts                                 
                                                                            
                                                         As at        As at 
                                                  February 28, February 28, 
                                                          2014         2013 
                                                  --------------------------
Assets                                                                      
Current Assets                                                              
  Cash and cash equivalents                             18,992       22,959 
  Trade receivables                                     17,408       35,452 
  Inventory                                             30,416       32,722 
  Other current assets                                   5,909        6,077 
  Contingent receivable                                      -       13,843 
  Deferred tax asset                                        69           69 
                                                  --------------------------
                                                        72,794      111,122 
Long Term Assets                                                            
  Property and equipment                                 3,168        7,444 
  Deferred tax asset                                     1,536        1,581 
  Deferred financing cost                                   60          149 
  Intangible assets                                      1,635        2,771 
  Goodwill                                              11,927       11,927 
                                                  --------------------------
                                                        18,326       23,872 
                                                                            
Total Assets                                            91,120      134,994 
                                                  --------------------------
                                                  --------------------------
                                                                            
Liabilities                                                                 
Current Liabilities                                                         
  Accounts payable and accrued liabilities              29,964       56,962 
  Debt facility                                              -       15,000 
  Deferred revenue                                         984        1,163 
  Capital lease obligation                               1,795        3,251 
  Contingent liabilities                                     -          255 
                                                  --------------------------
                                                        32,743       76,631 
                                                                            
Long Term Liabilities                                                       
  Debt facility                                         15,000            - 
  Capital lease obligation                                   -        1,451 
  Warrant liability                                      1,360            - 
  Other long term liabilities                              574          783 
  Contingent liabilities                                     -          519 
                                                  --------------------------
                                                        16,934        2,753 
                                                                            
Shareholders' equity                                                        
  Capital stock                                        198,593      179,429 
  Contributed surplus                                    7,118        6,047 
  Deficit                                             (154,505)    (120,197)
  Accumulated other comprehensive loss                  (9,682)      (9,685)
                                                  --------------------------
Total Shareholders' equity                              41,524       55,594 
                                                                            
  Non-controlling interests                                (81)          16 
                                                  --------------------------
Total Equity                                            41,443       55,610 
                                                                            
Total Liabilities and Equity                            91,120      134,994 
                                                  --------------------------
                                                  --------------------------
                                                                            
Shares issued & outstanding                         58,008,746   38,048,297 
                                                                            
                                                                            
                                                                            
CONSOLIDATED STATEMENTS OF OPERATIONS                                       
Expressed in US $000's except share and per share amounts                   
                                                                            
                                                                            
                                     Three months                Year Ended 
                        ----------------------------------------------------
                        February 28, February 28, February 28, February 28, 
                                2014         2013         2014         2013 
                        ----------------------------------------------------
                                                                            
REVENUE                       17,857       28,294       90,011      123,877 
  Cost of sales               15,268       26,807       79,348      104,376 
                        ----------------------------------------------------
Gross profit                   2,589        1,487       10,663       19,501 
                        ----------------------------------------------------
                                                                            
EXPENSES                                                                    
  Research and                                                              
   development                 4,863        7,713       19,948       34,020 
  Selling and marketing        3,165        4,138       13,201       16,088 
  General and                                                               
   administrative              3,762        6,600       17,087       26,601 
                        ----------------------------------------------------
                              11,790       18,451       50,236       76,709 
                        ----------------------------------------------------
                                                                            
Loss before amortization                                                    
 of intangible assets                                                       
 and other items              (9,201)     (16,964)     (39,573)     (57,208)
                                                                            
  Amortization of                                                           
   intangible assets            (404)        (845)      (1,900)      (3,748)
  Accretion expense              (48)         (56)        (222)        (124)
  Restructuring expense            -         (448)           -       (2,085)
  Interest expense              (440)        (451)      (1,750)      (1,662)
  Impairment of                                                             
   intangible assets               -       (5,388)           -      (13,812)
  Warrant issuance                                                          
   expenses                        -            -         (662)           - 
  Gain/(loss) on change                                                     
   in estimate                  (553)           -        2,759        6,958 
  Gain on contract                                                          
   amendment                       -            -        5,702            - 
  Gain on purchase of                                                       
   business                        -            -            -       19,397 
  Fair value adjustment                                                     
   - warrant liability          (352)           -        3,235            - 
  Loss on sale of assets           -       (2,827)           -       (2,827)
  Foreign exchange                                                          
   (loss) gain                  (311)         145       (1,530)          23 
                        ----------------------------------------------------
Loss before income taxes     (11,309)     (26,834)     (33,941)     (55,088)
                                                                            
  Income tax expense                                                        
   (recovery)                    128          428          398          (81)
                        ----------------------------------------------------
Net Loss                     (11,437)     (27,262)     (34,339)     (55,007)
                                                                            
  Net Loss Attributable                                                     
   to Non-Controlling                                                       
   Interest                     (162)          81           97          258 
                        ----------------------------------------------------
Net Loss applicable to                                                      
 shareholders                (11,599)     (27,181)     (34,242)     (54,749)
                                                                            
Net loss per share                                                          
  Basic and Diluted            (0.20)       (0.71)       (0.83)       (1.46)
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
  Basic and Diluted       57,062,936   38,043,594   41,438,383   37,495,818 

Contacts:
Nadine Kittle
Marketing Communications
DragonWave Inc.
[email protected]
613-599-9991 ext. 2262

John Lawlor
Investor Relations
DragonWave Inc.
[email protected]
613-599-9991 ext. 2424

Becky Obbema
Interprose Public Relations
(for DragonWave)
[email protected]
(408) 778-2024

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
For years the world's most security-focused and distributed organizations - banks, military/defense agencies, global enterprises - have sought to adopt cloud technologies that can reduce costs, future-proof against data growth, and improve user productivity. The challenges of cloud transformation for these kinds of secure organizations have centered around data security, migration from legacy systems, and performance. In our presentation, we will discuss the notion that cloud computing, properl...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Digital transformation has increased the pace of business creating a productivity divide between the technology haves and have nots. Managing financial information on spreadsheets and piecing together insight from numerous disconnected systems is no longer an option. Rapid market changes and aggressive competition are motivating business leaders to reevaluate legacy technology investments in search of modern technologies to achieve greater agility, reduced costs and organizational efficiencies. ...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning provides predictive models which a business can apply in countless ways to better understand its customers and operations. Since machine learning was first developed with flat, tabular data in mind, it is still not widely understood: when does it make sense to use graph databases and machine learning in combination? This talk tackles the question from two ends: classifying predictive analytics methods and assessing graph database attributes. It also examines the ongoing lifecycl...