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Dec 6 (Reuters) - Canadian telecom network equipment maker DragonWave Inc estimated third-quarter revenue that missed its own forecast as orders from Europe were lower than expected, sending its shares down 12 percent.
The company expects revenue of about $39 million for the quarter ended Nov. 30, down from its forecast range of $43 million to $50 million.
Analysts on average were expecting $47.2 million, according to Thomson Reuters I/B/E/S.
DragonWave, which supplies packet microwave radio systems for mobile and access networks, said orders expected to ship in November were rescheduled to December because of short-term supply challenges.
The company, which bought Nokia Siemens’ microwave technology unit last year, has been struggling to return to a profit as sales fall.
DragonWave, which had a market value of about $84 million as of Wednesday, has posted losses for eight consecutive quarters and its shares have fallen about 45 percent this year.
CFO Russell Frederick said in May that the company expects quarterly revenue run rate of about $75 million within a year of closing the Nokia Siemens unit deal.
TD Securities downgraded the stock to “reduce” as it expects the company to be in net debt by 2014.
“Slower-than-expected demand from European customers has longer-term implications for DragonWave’s ability to meet its (revenue run rate )target,” analyst Scott Penner said in a note to clients.
Brokerage Raymond James cut its price target on the stock to C$2.75 from C$3.50.
DragonWave shares were down about 3 percent at C$2.15 on the Toronto Stock Exchange on Thursday. (Reporting by Ankur Banerjee and Krithika Krishnamurthy in Bangalore; Editing by Roshni Menon and Don Sebastian)