LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on DragonWave Inc. (NASDAQ: DRWI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DRWI, following the Company's posting of its first quarter fiscal 2018 earnings results on July 12, 2017. The global supplier of packet microwave radio systems for mobile and access networks reported revenue and earnings per share numbers which improved on a q-o-q basis but declined on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the quarter ended May 31, 2017, DragonWave reported revenue of $8.99 million compared with $8.0 million in Q4 FY17 and $12.55 million in Q1 FY16. The Company noted that it was recently awarded a product supply and installation services contract from SmartSky Networks, a North American 4G LTE in-flight service provider. SmartSky will deploy DragonWave's Harmony Enhanced Multi-Channel products to provide high capacity backhaul for its Ground-to-Air 4G LTE network.
DragonWave's gross profit before inventory provisions was 27.8% in Q1 FY18 compared to 22.3% in Q4 FY17. The Company stated that there was no inventory provision taken in the reported quarter, while there was a $0.4 million inventory provision taken in the previous quarter. The Company stated that the margin improvement returns it to levels closer to its plan and DragonWave still expects to make further improvements to bring margins above 30% in coming quarters. For Q1 FY18, DragonWave reported that operating expenses declined to $6.6 million compared to $6.7 million in Q4 FY17.
During Q1 FY18, net loss attributable to DragonWave's shareholders was $4.3 million, or $0.52 per basic and diluted share, compared to a net loss attributable to shareholders of $3.9 million, or $0.60 per basic and diluted share, in Q4 FY17 and a loss of $4.1 million, or $1.23 per share, in Q1 FY17.
"At the end of May we communicated that we had engaged Alvarez & Marcel Canada ULC to advise us with the identification and assessment of strategic alternatives in relation to short term liquidity and difficult operating conditions," said DragonWave's President and CEO Peter Allen, "We are pursuing what has emerged from this work, and expect to be able to report on the forward plan in the near-term."
Cash Matters
Cash and cash equivalents totaled $3.9 million at the end of the first quarter of the fiscal year 2018 compared to $4.1 million at the end of Q4 FY17, while its debt facility balance remained unchanged at $17 million. The Company's adjusted cash flow from operations, which excludes non-cash items such as inventory provisions, stock compensation expense, and depreciation expense, was $3.6 million in Q1 FY17 compared to $4.3 million in Q4 FY17.
Stock Performance
On Friday, July 14, 2017, the stock closed the trading session at $0.99, jumping 8.79% from its previous closing price of $0.91. A total volume of 199.93 thousand shares have exchanged hands. DragonWave's stock price rallied 15.32% in the last one month. The stock currently has a market cap of $7.90 million.
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SOURCE: Pro-Trader Daily