July 12 (Reuters) - Shares of DragonWave Inc fell as much as 13 percent after the telecom network equipment maker posted a loss for the seventh straight quarter.
Gross margin for the company, which uses microwave technology to move data between cellular towers and telecom networks, also fell in the first quarter.
“With the difficult global business climate, we believe some of the expected revenue synergies (with Nokia Siemens Networks) may take longer to materialize,” Raymond James analyst Steven Li said in a note to clients.
DragonWave acquired Nokia Siemens Networks’ microwave technology business in November.
Li downgraded the company’s stock to “market perform” from “outperform” and cut his price target by 50 Canadian cents to C$3.50.
“Given our lower conviction on DragonWave’s outlook and integration and execution risks going forward, we recommend waiting for a higher appreciation potential,” Li said.
Toronto-listed shares of DragonWave touched a six-week low of C$3.08, while U.S.-listed shares hit a five-week low of $3.02 in early trading. The stock was one of the top percentage losers on both the exchanges. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Maju Samuel)