January 11, 2012 / 10:53 PM / in 6 years

UPDATE 1-DragonWave posts 5th straight loss

(In U.S. dollars unless noted)

TORONTO, Jan 11 (Reuters) - DragonWave posted a fifth straight quarterly loss on Wednesday and its sales missed analyst expectations as the Canadian telecom equipment maker suffered from a lull at a major U.S. customer and has yet to complete a deal for Nokia Siemens assets.

The Ottawa-based company, which uses microwave technology to move data between cellular towers and telecom networks more cheaply than fiber, posted a net loss of $8 million, or 23 cents a share, on revenue of $11.8 million.

Analysts, on average, had expected DragonWave to lose 18 cents a share on revenue of $13.6 million, according to Thomson Reuters I/B/E/S. The company lost 6 cents a share in the prior period and $40,000 a year ago.

The company has struggled to offset a cutback in spending at major customer Clearwire, a cash-strapped U.S. wireless provider that got a $1.6 billion lifeline in December from majority owner Sprint Nextel.

Dragonwave said North American sales were $8.2 million in the three months to the end of November, well down from $22.8 million a year ago, when Clearwire was spending heavily to build its network.

The company agreed to buy Nokia Siemens’ microwave business in November in a deal it expects will expand its sales by four or five times.

DragonWave said it expects fourth-quarter revenue of between $12 million and $15 million, not including any sales from the planned acquisition.

DragonWave shares, which have shed 60 percent of their value in the last year, closed 9.8 percent higher at C$3.82 on the Toronto Stock Exchange on Wednesday.

DragonWave said it had $60.2 million in cash and short-term investments, down from $71.6 million in the prior quarter.

$1=$1.02 Canadian Reporting by Alastair Sharp; editing by Rob Wilson

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