DragonWave says it now expects to record higher first-quarter revenue than it had previously projected.
DragonWave's Peter Allen. (Photo by Mark Holleron)
The Ottawa-based wireless broadband component supplier (TSX:DWI) says it’s now projecting that revenue during the three-month period that ended May 31 will be up 60 per cent from the previous quarter. In mid-May, company executives said they expected sequential revenue growth of 50 per cent.
DragonWave reported revenue of US$17.9 million during the fourth quarter of its previous fiscal year.
On a conference call in mid-May to discuss fourth-quarter results, company executives said they were optimistic about the first quarter and expected the company – which has struggled to achieve profitability – to reach the cash-flow break-even point some time this year.
“Over recent quarters, I have described how we believe that revenues would positively inflate. Although this has been later than expected, I am pleased to be able to report that this is now happening,” CEO Peter Allen said at the time.
The revised revenue forecast comes on the heels of a deal with one of the largest companies in India to provide broadband components for an India-wide4G/LTE network.
However, the company warned the increased projections are preliminary and have not been reviewed by outside auditors.