Ottawa-based DragonWave reported its 23rd straight quarter of net losses on Wednesday.
DragonWave, which sells microwave networking equipment to wireless companies, recorded revenue of $12.5 million during the three-month period that ended May 31.
That was down from $23.6 million during the same period the year before.
OBJ360 (Sponsored)
Care, Serve, & Give: Dr. Helen Tang is redefining what it means to lead with purpose
Dr. Helen Tang is a dynamic and multifaceted leader whose passion for community and philanthropy is at the heart of everything she does. As a devoted mother of two and
uOttawa grows Kanata North’s presence to meet rising innovation demands
When the University of Ottawa first opened its Kanata North Campus in the heart of Canada’s largest tech park, the goal was clear: To bring researchers, students, and industry closer
However, revenue was up from $12 million during the previous quarter.
DragonWave’s net loss for the period – the first quarter of the company’s fiscal year – was $4.1 million, an improvement from the net loss of $5.95 million the company posted during the same period last year.
That was largely due to a decline in the cost of sales and an increase in gross margin from 22.3 per cent to 31 per cent.
The company says it has now reduced its break-even point to $21 million in revenue.
“Growth in our direct channel revenue and margin reflect the first results from the implementation of our renewal strategy to introduce new products and focus on higher-margin regions,” Peter Allen, DragonWave’s president and CEO, said in a release. “We continue to expect near-term projects within our existing customer base to add to our North American foundation.”
During a conference call with investors, DragonWave executives did not give a timeline for the company’s return to profitability, as they have done in the past.
“We are focused on executing on a strategy that renews DragonWave and restores the path to profitability, and I hope to be able to report on further progress soon,” Mr. Allen said.
