274 0 Kommentare DragonWave Inc. Market Update

OTTAWA, CANADA--(Marketwired - Aug. 4, 2015) - DragonWave Inc. (TSX:DWI)(NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced an update to the market on a number of items that are all converging at the same time.

Nokia

We have entered an agreement with Nokia to address the impact of reduced demand being experienced through this channel in the first half of FY16 including temporary cash flow measures as well as a new commercial arrangement for Support and Maintenance services.

"We are pleased that we could come to these updated arrangements with Nokia. Nokia continues to be an important part of our business and we appreciate the support" said Peter Allen, DragonWave President and CEO.

Further expense reduction actions

We also confirmed that we are implementing further cost saving measures to reduce expenses and associated cash consumption.

The cost savings measures being implemented are planned to save approximately US$8 million in annual operating expenses as a result of staff reductions and other measures. We expect operating expenses going forward starting in our third quarter to be approximately US$8.5 million per quarter. The full impact on the financial statements will be discussed on our next earnings call. Peter Allen, DragonWave's President and CEO, said "These measures will reduce our break-even point and conserve cash going forward."

Status of major carrier activity - production and deployment

North America

In our last conference call we talked about receiving our first order from a North America Tier 1 operator for small cell backhaul. We are now seeing the funnel with this operator strengthening.

India

We have been deploying equipment into our first major customer in India since May 2014.This customer has continued to place follow on orders and the rollouts are proceeding vigorously.

In May this year we announced that we had received orders to supply a second Tier 1 operator in India. During the deployment phase we have experienced an unexpected problem with our product. The problem has been isolated and corrective actions are being implemented. The deployment is time sensitive and has been halted. We are developing a plan to manage the cash flow impact and also working with the customer on the path forward.