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
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...