Boston, MA 05/28/2014 (wallstreetpr) – Provider of wireless Ethernet for internet protocol networks, DragonWave, Inc. (USA) (NASDAQ:DRWI)’s shares, are up in the morning by highs of 11.81% after being selected by a nationwide Service Provider in India to provide LTE network solutions. Completion of the frame agreement has seen the company receive first purchase orders for thousands of links for providing related services.
DragonWave Selected After Extensive Testing
DragonWave, Inc. (USA) (NASDAQ:DRWI) will now provide thousands of turnkey Horizon Compact+ links to be used to support the Indian operator plans for rolling out extensive 4G LTE network. The deployment also enjoins Dragon wave’s Indian Joint venture DragonWave HFCL, for the expansion of the networks. DragonWave was selected after an extensive testing of its Horizon Compact + by the nationwide operators consequently found to be excellent in building a capacity backbone for 4G network networks.
Horizon Compact + was selected as it offers a combination of advanced 2048 QAM modulation, as well as the industry’s only bandwidth accelerator for bulk compression capability. The combination will thus be reliable for delivering unsurpassed spectral efficiency. The selection essentially demonstrates DragonWave product leadership portfolio that continues to set standards in the expansive 4G LTE space.
DragonWave Sluggish Q4 Results
The announcement of the deal in India comes as the company reported fourth quarter revenues of $17.9 million, dropping, from $22.9 million reported in the third quarter. DragonWave’s revenue from Nokia channel represented 68% of the total revenue in the fourth quarter and 51% for the third quarter. Gross margin, on the other hand, came in at 14.55 a slight improvement from 11.1% reported in the third quarter, but more than triple 5.3% reported in the fourth quarter of 2013.
DragonWave, Inc. (USA) (NASDAQ:DRWI) closed the year with a drop in cash and cash equivalent that came in at $19 million compared to $23 million as of the end of the third quarter. Net loss applicable to shareholders as of the end of the year stood at $34.2 million. The company remains confident that an increase in demand in the first quarter of 2015 could result in revenue growth of approximately 50%.
DragonWave, Inc. (USA) (NASDAQ:DRWI) Surging on LTE Network Selection in India
