The mobile backhaul provider saw a loss of US$12.6 million or $0.35 per share, a six-per-cent improvement over last quarter's result of $13.4 million or $0.38 per share.
Losses last year were $9.9 million, but revenues have improved: they were $13 million – up from $11 million last year.
Results for this quarter included an $800,000 restructuring charge and a $2.9-million impairment of intangible assets charge.
The company is still burning through its cash reserves, with cash and cash equivalents now standing at $42.6 million, down 20 per cent from $53 million at the end of the last quarter.
DragonWave, which has been hemmed in by depending heavily on only a few customers, is hoping to turn its fortunes around through a recent takeover of Nokia Siemens Networks' microwave transport business.
Due to NSN's network of partners and strong sales channels, DragonWave has been pegging its hopes on the acquisition as a way to counteract quarters of declining revenues, deep losses and a few layoffs.
Officials say NSN will be DragonWave's biggest customer, and that they have spent much of the first weeks of the agreement meeting in person with regional teams and making priorities clear. The goal is to achieve better balance in the bottom line, to the point of profitability, in the next year.
"When I look at the industry as a whole, we certainly see mobile broadband expanding in many markets. If you think about India and China alone, there's a huge number of subscribers there where data penetration is still very low," DragonWave CEO Peter Allen said in a conference call to analysts Thursday morning.
"I think there's still an enormous market opoprtunity, and that will only be strengthened by the need to deploy microcelleular products. I think the microcell wave will be strongly additive to the thrust to add greater global penetration, particularly in developing countries."
The NSN agreement's terms were revised in May due to poor economic conditions in Europe, with changes such as eliminating earnouts and removing a promise for DragonWave to acquire Italian assets and employees.
DragonWave, a new strategic supplier for NSN, stated the first-quarter results did not include any revenue from that relationship or from the acquisition, which closed June 1 after the quarter ended.
Early in the second quarter, DragonWave laid off 68 people in Ottawa and Israeli operations. The workforce reduction was "to reflect DragonWave's global integration plan for the recently completed takeover of Nokia Siemens Networks' microwave transport business," DragonWave stated in a press release at the time.
DragonWave also laid off 10 per cent of its workforce in October.