DragonWave cuts revenue view on shipment delays

DragonWave cuts revenue view on shipment delays

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(Global Markets) - Telecom equipment maker DragonWave Inc (DWI.TO) (DRWI.O) cut its first-quarter revenue forecast by 27 percent to $11 million, mainly due to a shipment delay by a North American customer, sending its shares down 8 percent in morning trade.

The company, hit hard as its key customer Clearwire has been struggling to raise cash to complete a high-speed wireless network in the United States, had last month forecast revenue of $15 million.

DragonWave, however, did not name the North American customer in its statement on Friday.

The company, which makes radio transmitters used in cellular networks, said the customer deferred a significant shipment of equipment.

DragonWave said regulatory delays also affected revenue from a customer in the Middle East.

Shares of Ottawa-based DragonWave were down 7 percent at C$5.63 on the Toronto Stock Exchange in morning trade. Its Nasdaq-listed shares were down 8 percent at $5.76.

(Reporting by Amruta Sabnis in Bangalore; Editing by Saumyadeb Chakrabarty and Gopakumar Warrier)