OTTAWA, CANADA -- (Marketwired) -- 07/10/13 -- DragonWave Inc. (TSX: DWI)(NASDAQ: DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for its first quarter ended May 31, 2013. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.
Revenue for the first quarter of fiscal year 2014 was $24.5 million, compared with $28.3 million in the fourth quarter of fiscal year 2013 and $13.0 million in the first quarter of fiscal year 2013. Revenue from the Nokia Siemens Networks channel represented 57% of revenue in the first quarter of fiscal 2014.
Gross margin for the first quarter of fiscal year 2014 was 11.5%, compared with 5.3% in the fourth quarter of fiscal year 2013 and 31.9% in the first quarter of fiscal year 2013. The gross margin in the fourth quarter of fiscal year 2013 reflects the inclusion of an inventory impairment provision of $0.8 million.
Business highlights include:
-- In the first fiscal quarter we reported results of our renewed framework with Nokia Siemens Networks, which was originally announced on April 10, 2013. This included a cash payment to DragonWave in the quarter of $13.8 million.-- Three of our major existing service provider customers in India, Southeast Asia and Africa are engaging in network expansions, starting in the second fiscal quarter.-- Industry developments include recent reports of a two year $16 billion investment in Sprint's network by Softbank, together with Sprint's acquisition of Clearwire.-- We recently announced the inclusion of DragonWave products in the Cisco® Small Cell Wireless Backhaul Ecosystem.-- We are also involved in a pilot small cell wireless backhaul deployment with a major Asian carrier.-- Our integration and restructuring activities yielded a 46% reduction in operating expenses compared to Q2 last year.
"We have made progress on multiple fronts. We are working hard with Nokia Siemens Networks to build the sales funnel for microwave, progressing our direct relationships particularly in the United States and India, advancing in the important area of small cell backhaul, and our operating expenses are declining as we complete our integration and restructuring activities" said DragonWave President and CEO, Peter Allen. "We will continue to have a strong focus on revenue growth and improving our margins."
Net loss applicable to shareholders in the first quarter of fiscal year 2014 was $6.6 million or ($0.17) per basic and diluted share. This compares to a net loss applicable to shareholders of $27.2 million or ($0.71) per basic and diluted share in the fourth quarter of fiscal year 2013 and net loss applicable to shareholders of $12.6 million or ($0.35) per basic and diluted share in the first quarter of fiscal year 2013.
Cash, cash equivalents, and restricted cash totaled $23.4 million at the end of the first quarter of fiscal year 2014, compared to $23.0 million at the end of the fourth quarter of fiscal year 2013.
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