DragonWave, Inc. (USA) (NASDAQ:DRWI)’s microwave backhaul equipment has been selected by Sprint, for network deployment, as part of Sprint’s optimization and densification strategy. The company noted that its dual channel capability, coupled with its leading system gain and network security capabilities was the main reason for their selection. Sprint plans to deploy small cells and other solutions, as part of its densifications strategy. This is being done to enhance network performance and hence the customer experience.
The COO of Technology at Sprint, Gunther Ottendorfer, stated that microwave backhaul was a cost-efficient and reliable alternative and would be an integral part of the extension of their toolkit. He also looks forward to continue working with DRWI, for implementing their strategy. Peter Allen, the CEO of DragonWave, stated that they were certain that they could bring unique advantages to Sprint’s network densification efforts. He also expressed confidence in their ability to deliver unmatched performance and support.
Earlier, the company filed its financial results for the 2Q2016, recording revenues of $13.2 million, up by $0.7 million from a quarter ago. DragonWave noted that there was a significant decline in percentage share of revenue, from its Nokia channel, which declined by 14%, on quarter-over-quarter basis. There was also a decline of $0.4 million, in the company’s operating expenses, from the preceding quarter. Unfortunately this was not enough for the company to record a net profit for the quarter. However, DRWI’s net loss declined by $0.2 million, as compared to the 1Q2017.
Mr. Allen expressed his pleasure at the results and the direct overall growth in revenues. He also pointed out that they had made significant progress with its renewal and restructuring approach and reaffirmed his commitment to do so in the coming quarters. The CEO also claimed that they would continue to focus on improving revenues and margins through opportunities presented by their feature rich products.
DragonWave, Inc. (USA) (NASDAQ:DRWI) closed at a share price of $4.29, at the end of the October 20 trading session, 94.12% higher than the day before, on a trade volume of 23.92 million.