Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘DragonWave’

DragonWave Q2 profits fall 78.9%

Posted by sweens on October 13, 2010

But year-to-date numbers still strong

Packet microwave radio systems supplier DragonWave Inc. reported a sharp reduction in second-quarter earnings late Wednesday as net earnings slipped to $1.2 million, compared to $5.7 million a year earlier.

Revenues were also down, falling to $27.2 million from $32.4 million in Q2 of the company’s fiscal 2010 year.

Despite the disappointing results – which come a week after one analyst advised his clients to ditch the Ottawa-based company’s shares – DragonWave president and CEO Peter Allen said he was “satisfied” with firm’s progress in strengthening its market presence and expanding its base of customers and partners.

“The global demand for mobile broadband Internet services continues to expand – we are still in the early stages of the growth potential for DragonWave mobile backhaul solutions in markets throughout the world,” Mr. Allen said in a statement.

The company’s fiscal year-to-date figures painted a more positive picture. Revenue in the first six months of fiscal 2011 was $75.9 million, a 67-per-cent increase over the previous year.

Profits more than doubled, from $3.4 million to $10.9 million.

In recent months, critics have highlighted how a single customer, wireless broadband services firm Clearwire, provides the lion’s share of DragonWave’s revenues. Clearwire recently slowed its pace of orders from DragonWave, prompting concerns from investors.

In its quarterly financial summary, DragonWave (TSX:DWI) noted it had two customers that each contributed more than 10 per cent of its revenues.

The company is forecasting $30 million in third-quarter revenues.

http://www.obj.ca/Technology/2010-10-07/article-1830603/DragonWave-Q2-profits-fall-78.9%25/1

Posted in News | Tagged: , , | Leave a Comment »

DragonWave signs OEM deal

Posted by sweens on March 2, 2010

Published on February 24th, 2010
Ottawa Business Journal

Shares of DragonWave Inc. (TSX:DWI) soared more than five per cent Wednesday as it announced a major original equipment manufacturer deal for backhaul products that will be used in North America and Japan.

Ottawa-based DragonWave said it’s signed an agreement with an unnamed “world leader” in mobile communications infrastructure that will see the former’s microwave radio system used in the customer’s end-to-end mobile backhaul solutions.

 While few details were disclosed, the markets reacted positively to the news, as the deal could represent a step in DragonWave’s goal of connecting with major carriers such as Alcatel-Lucent and Verizon. It could also allow the company to diversify and lessen its strong dependence on top customer Clearwire.

 The company’s stock, which has already been enjoying blistering growth over the past several months, soared to a fresh high of $13.65 following the news, before settling down slightly at $13.43 at the close of business Wednesday, a 70-cent spike from the previous day’s close.

http://www.obj.ca/Technology/2010-02-24/article-818999/DragonWave-signs-OEM-deal/1

Posted in News | Tagged: , , , , , , , | Leave a Comment »

2010 to be all about mobile technology: Deloitte

Posted by sweens on January 19, 2010

Krystle Chow
Ottawa Business Journal
Tablet PCs, eBooks and other mobile technology are among the top trends sighted for 2010 in the technology, media and telecommunications sectors, or TMT, along with the dilemma of tightening resources versus burgeoning demand, according to Deloitte Canada.
Deloitte’s 2010 TMT Predictions report said the increasing popularity of mobile Internet will lead the charge for innovation in the year ahead, with the e-book topping its list of trends to watch.
The headline-grabbing Amazon Kindle e-reader has been flying off the shelves since its introduction in 2007, spawning imitators from Sony and fellow book retailer Barnes & Noble among others, but the report pointed to the actual reading medium as the way of the near future, rather than the reading technology, which it proclaimed a niche-filler.“Although e-readers are securing headlines, they are an interim technology and sales growth will not meet expectations, as competition from alternative devices will likely slow their growth rate in 2011,” the report said. “E-books are expected to do well, but not be limited to stand-alone e-readers and will mainly be read on smartphones, PCs and tablets.”Deloitte drew parallels between the potential challenges for Canadian publishers, writers and distributors and those of the music industry, which has been seeking ways to deal with declining sales of hard-copy, recorded music in the face of digital downloads.

Other key industry trends include the emergence of the tablet PC and the media’s struggle to gain revenues from online content, the study showed.

That’s in line with what the report predicted would be the major driver of the three industries in 2010, namely the demand for the ability to access unlimited data “anywhere, anytime and on any screen.”

However, Deloitte pointed out that the slow recovery from 2008’s economic downturn means that demand will have to be balanced with limited budgets and clogged networks.

“Yesterday’s technologies can’t keep up with tomorrow’s customers,” said John Ruffolo, chief of Deloitte’s national technology, media and telecommunications industry group, in a statement. “Clearing the network traffic jams created by new mobile devices will not be easy and will have serious ramifications for customers and carriers alike.”

The report pointed to the dangers of recent “all-you-can-eat” data offerings among mobile carriers, especially with the addition of new entrants such as Wind Mobile, and said service providers will likely turn to short-term quick fixes to tide them over while they plan out new networks to accommodate the increased bandwidth usage.

That could be where local companies such as DragonWave and Bridgewater Systems come in, since the former deals with bandwidth-maximizing packet microwave radios while the latter’s technology allows carriers to keep track of and manage subscriber plans.

“Canadians and Canadian companies are at the front lines of the battle between demand for data and the realities of pricing,” stated Duncan Stewart, director of Deloitte Canada Research. “This tension is driving the TMT world to opt for solutions that may not be perfect, but are good enough.”

The report also pointed to cloud computing – in layman’s terms, the increasing use of hosted, virtual IT services provided over the Internet instead of the traditional on-site hardware and software ­– as one of the fastest-growing technology sectors, although it said it is “not taking over the world quite yet.”

“Concerns over reliability and security continue to make large enterprises and governments cautious about adopting cloud. In contrast, consumers and small enterprises are the logical early adopters, as the global cloud computing industry is predicted to grow almost 50 per cent to $80 billion in 2010,” the report noted.

It’s another area where Ottawa firms could benefit, including companies such as Embotics, which helps customers manage their virtual servers from creation to destruction, ensuring that servers are not deployed unnecessarily or lying dormant once created.

Other trends highlighted by Deloitte include increased competition and the threat of oversaturation in the clean-tech industry, along with the shift to the $80-billion online advertising market, which is expected to continue to steal market share from traditional ad media.

The report is based on research, interviews and input from Deloitte clients and alumni, industry analysts, 100 technology, media and telecommunications C-suite executives from around the world, and more than 6,000 Deloitte TMT member firm practitioners.

http://www.obj.ca/Technology/2010-01-19/article-497864/2010-to-be-all-about-mobile-technology%3A-Deloitte/1

Posted in News | Tagged: , , , , , , , , , , , , , , , , | Leave a Comment »

DragonWave has its sights set on big U.S. carriers AT&T, Verizon

Posted by sweens on December 15, 2009

Published on December 10th, 2009
Published on December 12th, 2009
Canadian Press

Traffic jams on wireless networks due to iPhone and other smartphone users surfing the Internet and downloading video are an opportunity for DragonWave CEO Peter Allen.

“The pressure on the mobile network is increasing dramatically, and frankly people who have got iPhones consume more of the Internet,” Mr. Allen said from the tech company’s Ottawa headquarters.

“It’s creating more traffic and it’s moving into mobile settings. So that’s where we’re involved.”

DragonWave Inc. (TSX:DWI) makes equipment for telecom companies that are building advanced networks with the goal of making mobile speeds similar or faster than the broadband experience at home and to ease congestion.

The company has already won key U.S. customer Clearwire, which is building a next-generation WiMax network that has started to launch in large U.S. cities.

“They’ve been very aggressive in their buildout and, of course, we’ve benefited from that.”

Clearwire which had been having some funding problems has secured an additional $1.5 billion to further expand its network across the United States.

Mr. Allen said U.S. carrier Sprint is also a DragonWave customer and the company is also looking for wins with AT&T and Verizon Wireless.

But he said DragonWave isn’t alone on that front.

“Most of the world with us is competing for AT&T and Verizon right now. So that’s what we’re after in North America.”

National Bank Financial analyst Kris Thompson said he expects Clearwire to remain an important customer in the next few years for DragonWave, it could be joined by AT&T and Verizon as they build their new networks.

“Our understanding is that DragonWave has been short-listed as a qualifying vendor into the Verizon Wireless deployment,” Mr. Thompson wrote in a recent note.

“We expect AT&T to be at least several months behind Verizon Wireless in awarding contracts that DragonWave can bid on.”

Mr. Allen said 68 per cent of the companies revenues are from North America.

Pacific Crest Securities analyst James Faucette said the opportunities for DragonWave to bid on contracts with Verizon and AT&T aren’t likely to come until late next year.

“While there has been obvious and understandable concern regarding DragonWave’s customer concentration with Clearwire (77 per cent of revenue in the August 2009 quarter), we now believe that Clearwire will be able to maintain its buildout plans during all of 2010 and 2011 now that it has raised additional capital,” he wrote in a research note.

DragonWave was formed in 2000 and has about 250 employees and also has offices in U.K., France, Dubai and Singapore. Its competitors include Israel’s Ceragon Networks and U.S.-based Harris Stratex.

In October, the company listed on the Nasdaq to increase its profile and raised an additional US$74.5 million in an equity financing.

DragonWave earned $6.3 million or 21 cents per diluted share for the quarter ended Aug. 31 compared with a loss of $1.7 million or six cents per share a year ago. Revenue for what was the second quarter of the company’s 2010 financial year more than tripled to $35.5 million, compared with $10.6 million a year ago.

In its outlook, the company has said it expects revenue for its 2010 financial year will reach at $150 million.

National’s Mr. Thompson said the company has potential to reach $200 million in annual revenues in its 2011 financial year and a long-term $20 share valuation.

“Investors should expect this stock to be volatile over the near-term as DragonWave’s Nasdaq IPO is concluded and as ownership in the company migrates from a value investor base to a momentum-driven investor base along with a higher concentration of U.S. investors,” he said.

By LuAnn LaSalle

http://www.obj.ca/Technology/2009-12-10/article-270823/DragonWave-has-its-sights-set-on-big-U.S.-carriers-AT%26amp%3BT%2C-Verizon/1

Posted in News | Tagged: , , , , , , , , , , , , , , | Leave a Comment »