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DragonWave signs OEM deal

Contract / Deal / Signing / Signature

Published on February 24, 2010; Published on February 24, 2010
Krystle Chow

Shares of DragonWave Inc. (TSX:DWI) soared more than five per cent Wednesday as it announced a major original equipment manufacturer deal for backhaul products that will be used in North America and Japan.

Topics :: DragonWave , Alcatel-Lucent , Verizon , Ottawa

Ottawa-based DragonWave said it’s signed an agreement with an unnamed “world leader” in mobile communications infrastructure that will see the former’s microwave radio system used in the customer’s end-to-end mobile backhaul solutions.

While few details were disclosed, the markets reacted positively to the news, as the deal could represent a step in DragonWave’s goal of connecting with major carriers such as Alcatel-Lucent and Verizon. It could also allow the company to diversify and lessen its strong dependence on top customer Clearwire.

The company’s stock, which has already been enjoying blistering growth over the past several months, soared to a fresh high of $13.65 following the news, before settling down slightly at $13.43 at the close of business Wednesday, a 70-cent spike from the previous day’s close.

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