UPDATE 2-DragonWave cuts rev estimate as sales fall in Nokia Siemens unit

Mon Mar 4, 2013 11:11am EST
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* Expects 4th-qtr revenue of $30 mln

* Says will cut costs further

* Shares fall 25 pct (Adds comments from CFO and analyst, share movement, details)

March 4 (Reuters) - Telecom network equipment maker DragonWave Inc said revenue for the fourth quarter would miss its forecast, citing lower sales in the microwave technology business it bought from Nokia Siemens Networks last year.

DragonWave shares slid 25 percent to a three-month low of C$1.81 on the Toronto Stock Exchange on Monday.

Ottawa-based DragonWave also said it will cut costs further but did not specify what the measures were. Chief Financial Officer Russell Frederick said he could not provide more information on cost cutting.

National Bank Financial analyst Kris Thompson said in a note to clients that cost cuts could indicate that lower revenue is not temporary. He lowered his price target on the company's New-York listed stock to $1.75 from $2.00.

The cash-strapped company has been trying to cut costs since the acquisition of the Nokia Siemens unit in May. It cut 116 jobs in Ottawa and Israel in 2012.

The supplier of high-capacity broadband wireless networking systems estimated revenue of $30 million for the quarter ended Feb. 28. It had forecast $40 million to $45 million.   Continued...