Losses continue to mount for Ottawa's DragonWave

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.

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.