July 6, 2011 / 8:25 PM / 7 years ago

UPDATE 2-DragonWave posts third-straight quarterly loss

* DragonWave loses $0.28 a share on revenue of $11 mln

* Third-straight loss for telecom equipment maker

* Says expects Q2 revenue of $12 mln to $15 mln (Adds share price, quote, details; In U.S. dollars unless noted)

TORONTO, July 6 (Reuters) - Struggling telecom equipment maker DragonWave Inc DWI.TODRWI.O posted its third straight quarterly loss on Wednesday, its fortunes still tied to major U.S. customer Clearwire Corp CLWR.O, which is seeking cash to build its network.

Ottawa-based DragonWave lost $9.9 million, or 28 cents a share, on revenue of $11.0 million, in its financial first quarter. The revenue number just met the low end of a forecast range the company had already revised lower.

Analysts had, on average, expected DragonWave to lose 17 cents a share on revenue of $12.2 million, according to Thomson Reuters I/B/E/S.

The company, which makes radio transmitters used in cellular networks, said it expects sales of between $12 million and $15 million in the current quarter.

DragonWave relies on a small number of customers for much of its revenue, leaving it vulnerable when their network-building slows.

Chief Executive Peter Allen said in the earnings release that DragonWave is “engaged in numerous promising opportunities in markets throughout the world” and expects a number of deals to land in the second half of its financial year.

The company said on Tuesday that its head of sales was resigning and that regional sales executives would now report directly to Allen.

A month ago it cut its revenue forecast, blaming the deferral of a significant shipment of equipment at a North American customer — thought to be be Clearwire — and regulatory hassles for a Middle Eastern client.[ID:nL3E7H320P]

At the time it said it would unveil a full strategic review on July 7, when it hosts a conference call for analysts.

Shares in DragonWave fell 14 percent before the results, which came after the official close of the Toronto Stock Exchange. They slipped another 2 percent in after-hours Nasdaq trade. (Reporting by Alastair Sharp; editing by Jeffrey Hodgson)

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