Revenue growth continues for Dragonwave

As the company predicted, Ottawa-based Dragonwave’s revenue growth continued in the second quarter of its 2015 fiscal year.

In its second-quarter results, released late Wednesday, the company reported revenue of $37.9 million, compared with $28.8 million in the last quarter, a 32 per cent increase.  Revenue for the same quarter last year was $25.5 million.

Dragonwave (TSX:DWI)(NASDAQ:DRWI) reported 60 per cent of its second-quarter revenue came from its Nokia channel, down marginally from the previous quarter and the same quarter last year.

Gross margin for the wireless broadband component supplier’s second quarter came in at 15.5 per cent, down from 20.5 per cent last quarter. The company said the drop was because of a inventory impairment provision of $1.2 million. Without it, the gross margin was 18.8 per cent.

The company reported a net loss of $8.9 million or $0.14 per share for the three months ending Aug. 31, compared with $6.6 million or $0.11 per share in the last quarter and $10.5 million or $0.28 per share in the same quarter last year.

"We delivered another quarter of strong sequential growth," DragonWave president and CEO Peter Allen said in a statement. “We anticipate fiscal third-quarter revenue to grow between 20% and 30% compared to our fiscal second quarter."

The company had cash and cash equivalents of $33.6 million at the end of the second quarter compared with $15.6 million at the end of the previous quarter.