May 8, 2013 / 10:24 PM / 4 years ago

UPDATE 1-DragonWave posts wider loss as costs rise

2 Min Read

* Fourth-quarter revenue more than triples to $28.3 mln

* Fourth-quarter loss $0.71/share vs $0.38/share year ago

* Expenses rise about 35 pct

May 8 (Reuters) - Telecom network equipment maker DragonWave Inc reported a wider quarterly loss, hurt in part by higher costs.

This is the company's ninth straight quarterly loss.

DragonWave's loss widened to $27.3 million, or 71 cents per share, in the fourth quarter, from $13.4 million, or 38 cents per share, a year earlier.

Revenue more than tripled to $28.3 million.

The company, which uses microwave technology to move data between cellular towers and telecom networks, said expenses rose about 35 percent in the quarter to $18.5 million.

The company amended its deal with Nokia Siemens Networks in April to reduce operating costs, and cut three senior management positions.

DragonWave has been trying to reduce costs since it acquired Nokia Siemens's microwave technology business last June.

Gross margin in the fourth quarter was 5.3 percent, down from 13 percent a year earlier.

The company expects to return to third-quarter gross margin levels of about 19 percent over the next two quarters, CFO Russell Frederick said.

Shares of the company, which has a market value of about $83 million, closed at C$2.19 on the Toronto Stock Exchange on Wednesday.

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