Shares of Ottawa networking firm DragonWave (TSX: DWI; NASDAQ: DRWI) more than doubled in value on the NASDAQ Thursday, hours after the company said its technology will be used in Sprint’s network densification efforts.
DragonWave ended the day on the NASDAQ up more than 94 per cent to $4.29.
The company, which sells microwave networking equipment to wireless companies, saw its share price plungeearlier this month after it reported a drastic decline in second-quarter revenues.
The earnings report also marked six straight years without a quarterly profit for the firm.
However, Desjardins Capital Markets analyst Maher Yaghi was quoted by the Financial Post as saying the Sprint deal could mark a turnaround for DragonWave.
“We do believe it could be large enough to bring DragonWave’s operations back into a cash-neutral position,” Mr. Yaghi reportedly said. “Moreover, this deal could significantly boost the confidence of any potential client that might have shied away from DragonWave because of its weak credit profile,” he added.