Microwave backhaul company DragonWave continues to struggle thanks to its heavy reliance on Clearwire (NASDAQ:CLWR). The company reported a 77 percent year-over-year decline in revenues--to $11 million--for its fiscal first quarter that ended May 31. Net loss for the quarter was $9.9 million compared with a net income of $9.7 million in the year-ago period.
DragonWave's second quarter won't be much better as the company predicted sales would come in between $12 million and $15 million. Clearwire continues to be in a holding pattern when it comes to building out its WiMAX network as it seeks more funding. DragonWave's move to diversify has gone slowly. The vendor said it had customers who generated more than 10 percent of revenue in the first quarter.
"We are engaged in numerous promising opportunities in markets throughout the world, including North America, Latin America, Europe and Asia and we remain positive about our prospects," said DragonWave President and CEO Peter Allen in a statement. "While we cannot be certain about the exact timing for each opportunity, we maintain our view that a number of them have the potential to be landed during the second-half of this fiscal year."
- see this release
- see this Ottawa Citizen article
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