DragonWave expects 4th-quarter revenue to miss estimates
(Reuters) - Canada's DragonWave Inc DWI.TO DRWI.O said it expects fourth-quarter revenue to miss its own estimates due to delays in shipments to some customers in North America, Japan and the Middle East, sending its shares down as much as 11 percent.
The supplier of high-capacity broadband wireless networking systems now expects a revenue of about $9.4 million in the quarter ended February 29, below its earlier estimate of $12 million to $15 million.
Analysts were expecting DragonWave, which counts telecom carriers and governments among its clients, to post a revenue of $13.9 million, according to Thomson Reuters I/B/E/S.
Avian Securities analyst Matthew Thornton said DragonWave's results for the quarter were hit by delays in at least three large orders due to delays in regulatory approvals or customer build-outs.
Thornton also expects the company's pending acquisition of Nokia Siemens Networks' microwave business to stretch its finances in the near term. "I think they're going to have a tough time in the next 3-4 quarters as they integrate that deal," he said.
DragonWave, which has posted losses in the last five quarters, has struggled to offset a cutback in spending at its major customer Clearwire, a cash-strapped U.S. wireless provider that got a $1.6 billion lifeline in December from its majority owner Sprint Nextel.
Shares of the Ottawa-based DragonWave, which have lost about half of their value over the last one year, were down 7 percent at C$3.93 on Tuesday morning on the Toronto Stock Exchange. The stock's Nasdaq listing was also down 7 percent at $3.94.
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Sreejiraj Eluvangal)
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