Telecom vendor DragonWave confirmed it has reduced 33% of its existing senior management staff as part of efforts to reduce costs.
The company has also announced a scale-back to its existing operational framework with Nokia Siemens Networks.
DragonWave acquired NSN's microwave business in June 2012.
In line with the renewed framework, DragonWave will continue to be the preferred supplier to Nokia Siemens of packet microwave and related products, and the companies will jointly coordinate technology development activities.
In line with the renewed framework, DragonWave will continue to be the preferred supplier to Nokia Siemens of packet microwave and related products, and the companies will jointly coordinate technology development activities.
As per the renewed deal, Nokia Siemens will provide DragonWave with an immediate cash payment of €10.6 million ($13.8 million)
But the companies have terminated a contract whereby NSN was providing R&D and other services to DragonWave.
DragonWave said it expects this termination to reduce operating costs by approximately €3 million per quarter. The company expects to pay a termination fee totaling approximately €7 million over the balance of fiscal year 2014.
DragonWave has rebranded the products acquired from Nokia Siemens Networks as “Harmony” products and will continue the support and development of these products, which will also be sold via Nokia Siemens Networks.
“The new arrangements being announced today are intended to streamline our operations and customer outreach strategy to better serve Nokia Siemens Networks and its customers. We look forward to continuing to pursue market opportunities together with Nokia Siemens Networks,” said Peter Allen, DragonWave president and CEO.