DragonWave Loss Narrows; Stock Up

(RTTNews) - DragonWave Inc. (DRWI) (DWI.TO), a supplier of packet microwave radio systems for mobile and access networks, said Monday its third-quarter net loss narrowed to $5.5 million or $0.12 per share from $13.9 million or $0.36 per share in the prior year. The company attributed the results to improved margins.

On average, seven analysts polled by Thomson Reuters estimated a loss of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter fell to $22.2 million from $38.5 million last year. Analysts estimated revenue of $27.88 million.

The company said it recently signed a new supply agreement with a major US-based carrier and that deployments from the projects anticipated under the agreement are expected to commence during the first half of 2014.

"Network rollout plans in the United States and India are at the core of our future growth strategy. To position ourselves for these opportunities we have increased and extended our credit facilities in addition to the cash we raised in September" said DragonWave CEO Peter Allen.

DragonWave stock closed Monday at $1.51, down $0.08 or 5.03%, on a volume of 871 thousand shares on the Nasdaq. In after hours, the stock gained $0.19 or 12.58%.