Dragonwave 2015 Q1 revenue up 61 per cent from previous quarter

Ottawa-based Dragonwave reported extremely strong revenue growth in the latest quarter, and that trend is expected to continue into the next quarter, CEO Peter Allen said in a conference call Thursday.

The wireless broadband component supplier said revenue for the first quarter of 2015 came in at $28.8 million, up from $17.9 million in the fourth quarter of 2014 and $24.5 million from the first quarter of its last fiscal year.

The company reported a net loss for the quarter of $6.6 million, the same as the first quarter of 2014, but down from $11.6 million in the last quarter of 2014.

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Mr. Allen predicted the company would reach the cash break-even point in the not-too-distant future.

“We’ll get there during this fiscal year, but I’m not going to say which quarter,” he said.

The quarterly report, released Wednesday, matches the company’s projection, which it upgraded in early June based on a deal with Reliance Jio Infocomm Ltd., a major telecom and broadband service provider in India.

Mr. Allen said demand remains strong in India, Europe and North America, and an upsurge in seven African countries should lead to continued revenue growth of between 25 and 40 per cent in the next quarter.

Mr. Allen said in spite of the Reliance deal, Dragonwave remains a minority player in India, but there is room for “considerable movement.”

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