Ottawa backhaul wireless manufacturer DragonWave Inc. easily surpassed financial analysts' revenue expectations for its third quarter, pulling in $55.8 million largely due to U.S. carrier Clearwire. The consensus among analysts was that the company would hit $49 million for the period ending Nov. 30. “DragonWave delivered solid results again this quarter,” company president and CEO Peter Allen said in a news release. “The company continues to scale the business to meet expanding worldwide demand for our market-leading packet microwave solutions.”
Among its customers is U.S. WiMax carrier Clearwire, which accounts for over 80 per cent of its revenue. However, National Bank financial expects that will drop this year as it adds more customers. Clearwire hopes to roll out WiMax service to as many as 120 million Americans this year.
DragonWave'sCanadian customers include Quebecor Inc.'s Videotron cable division, for its upcoming HSPA cellular business, and new wireless provider Wind Mobile of Toronto.
DragonWave is a young company: It had only $10.7 million in revenue for the third quarter a year ago. It's net income for the third quarter was $12.6 million, twice as much as the second quarter. Based on the latest results, the company expects its total revenue for the fiscal year will be $170 million.
It's products include the Horizon Compact and Horizon Quantum micowave systems.