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)
Don’t get left behind: Keep pace with the job market by AI upskilling at uOttawa
uOttawa’s Paula Branco was a math teacher in Portugal for more than a decade before deciding to boost her career by going back to school. “I’m one of those people
Minto’s Metro Towns at Anthem in Barrhaven & Parkside in Kanata offer attainable home ownership
Guided by the needs of homeowners, Minto has been building new homes and master-planned communities across Canada and the USA for 70 years. To ensure the best quality of life
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.
