DragonWave Reports Fourth Quarter and Full Fiscal Year 2017 Results

OTTAWA, CANADA–(Marketwired – May 26, 2017) – DragonWave Inc. (TSX:DRWI)(NASDAQ:DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for the fourth quarter and full fiscal year ended February 28, 2017. All figures are in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Revenue for the full fiscal year was $43.9 million. Revenue for the fourth quarter of fiscal year 2017 was $8.0 million, compared with $10.2 million in the third quarter of fiscal year 2017.

Gross profit before inventory provision for the full fiscal year was 29.1%. Gross profit before inventory provisions was 22.3% in the fourth quarter of fiscal year 2017, compared to 28.3% in the third quarter of fiscal year 2017. There was a $0.4 million inventory provision taken in the fourth quarter of fiscal year 2017, while there was a $0.2 million inventory provision taken in the third quarter of fiscal year 2017.

See “Non-GAAP Financial Measures” below for the most directly comparable measure to gross profit before inventory provisions when calculated in accordance with GAAP and presented in DragonWave’s financial statements.

Operating expenses during fiscal year 2017 were $27.9 million, a decrease of $9.9 million compared to the previous fiscal year. Operating expenses in Q4 decreased to $6.7 million from $7.0 million in the third quarter of fiscal year 2017.

Net loss attributable to shareholders in the fourth quarter of fiscal year 2017 was ($3.9) million or ($0.60) per basic and diluted share. This compares to a net loss attributable to shareholders of ($4.6) million or ($0.80) per basic and diluted share in the third quarter of fiscal year 2017.

“Our results in Q4 reflect the difficult operating conditions. Earlier this year we communicated that we had made a restructuring proposal to our credit facility partners to reduce operating expenses and address working capital.” said DragonWave President & CEO, Peter Allen. “In co-operation with our secured lenders we have engaged Alvarez & Marsal Canada ULC to assist us with the identification and assessment of strategic alternatives in relation to short term liquidity requirements.”

Cash and cash equivalents totaled $4.1 million at the end of the fourth quarter of fiscal year 2017, compared to $4.5 million at the end of the third quarter of fiscal year 2017.

Webcast and Conference Call Details:

The DragonWave management team will discuss the results on a webcast and conference call beginning at 8:30 a.m. Eastern Time on May 29, 2017.

The live webcast and presentation slides will be available at the Investor Relations section of the DragonWave website at: http://investor.dragonwaveinc.com/events.cfm

An archive of the webcast will be available at the same link.

Conference call dial-in numbers:

Toll-free North America Dial-in: (877) 312-9202

International Dial-in: (408) 774-4000

About DragonWave

DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave’s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave’s products is wireless network backhaul, including a range of products ideally suited to support the emergence of underlying small cell networks. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave’s corporate headquarters are located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.

DragonWave® is a registered trademark of DragonWave Inc.

Non-GAAP Financial Measures

This press release contains certain information that is not consistent with financial measures prescribed under GAAP. We break out “Gross profit before inventory provisions” as this measure allows management to evaluate our operational performance and compare to prior periods more effectively. “Gross profit before inventory provisions” does not have any standardized meaning prescribed by GAAP, it is therefore unlikely to be comparable to similar measures presented by other issuers and is not designed to replace other measures of financial performance or the statement of operations as an indicator of performance. This measure should not be considered in isolation or as a substitute for other measures of performance calculated according to GAAP. We believe that it is useful to compare gross profit results without the impact of inventory provisions, since our inventory provisions generally relate to technical obsolescence and excess due to market changes. We believe this non-GAAP measure also provides investors with a better ability to understand our operational performance. We calculate “Gross profit before inventory provisions” consistently over each fiscal period.

The most directly comparable GAAP measure presented in our consolidated financial statements for the three and twelve months ended February 28, 2017 to “Gross profit before inventory provisions” is “Gross profit”.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements or forward-looking information as defined by applicable securities laws. Forward-looking statements include statements as to DragonWave’s restructuring efforts, efforts to reduce operating expenses and address working capital, and identification and assessment of strategic alternatives in relation to short term liquidity requirements. These statements are subject to certain assumptions, risks and uncertainties, including DragonWave’s ongoing efforts to manage cash flows and liquidity.

Forward-looking statements are provided to help external stakeholders understand DragonWave’s expectations as of the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. DragonWave’s actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements, as a result of the risks identified above as well as other risks identified in our publicly filed documents. Material risks and uncertainties relating to our business are described under the heading “Risks and Uncertainties” in the MD&A dated May 26, 2017 and in the Company’s Annual Information Form and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Expressed in US $000’s except share amounts
As at As at
February 28, February 29,
2017 2016
Current Assets
Cash and cash equivalents 4 073 4 277
Trade receivables 11 876 18 986
Inventory 21 415 22 702
Other current assets 1 791 2 777
39 155 48 742
Long-term Assets
Property and equipment 2 517 3 702
Intangible assets 336 623
2 853 4 325
Total Assets 42 008 53 067
Current Liabilities
Debt facility 17 030 22 152
Accounts payable and accrued liabilities 25 206 23 832
Deferred revenue 539 1 944
Deferred tax liability 148 294
Warrant liability 117
42 923 48 339
Long-term Liabilities
Deferred revenue 435 498
Warrant liability 1 090 3
1 525 501
Commitments and contingencies
Shareholders’ Equity (Deficiency)
Capital stock 229 995 221 128
Contributed surplus 10 503 9 235
Deficit (234 113 ) (218 225 )
Accumulated other comprehensive loss (9 618 ) (9 618 )
Total Shareholders’ Equity (Deficiency) (3 233 ) 2 520
Non-controlling interest 793 1 707
Total Equity (Deficiency) (2 440 ) 4 227
Total Liabilities and Equity (Deficiency) 42 008 53 067
Shares issued and outstanding 7 305 219 3 020 069
Expressed in US $000’s except share and per share amounts
Three months ended Twelve months ended
February 28, February 29, February 28, February 29,
2017 2016 2017 2016
Hardware and other 6 847 8 601 32 742 70 491
Services 1 105 3 440 11 174 15 804
7 952 12 041 43 916 86 295
Hardware and other 5 549 7 794 25 672 58 991
Services 633 1 563 5 477 8 917
Inventory provision 367 3 181 953 4 416
6 549 12 538 32 102 72 324
Gross profit 1 403 (497 ) 11 814 13 971
Research and development 1 798 2 425 7 825 13 406
Selling and marketing 1 637 1 858 7 363 10 572
General and administrative 3 283 3 311 12 734 13 798
6 718 7 594 27 922 37 776
Loss before other items (5 315 ) (8 091 ) (16 108 ) (23 805 )
Goodwill impairment (11 927 )
Restructuring costs (130 ) (1 549 )
Amortization of deferred financing cost (442 ) (442 )
Amortization of intangible assets (87 ) (96 ) (369 ) (577 )
Accretion expense (1 ) (37 ) (102 ) (205 )
Interest expense (382 ) (424 ) (1 464 ) (2 014 )
Warrant issuance expenses (561 )
Change in fair value of warrant liability 2 470 (69 ) 4 242 1 119
Foreign exchange loss (31 ) (307 ) (110 ) (331 )
Loss before income taxes (3 788 ) (9 154 ) (14 914 ) (39 289 )
Income tax expense 137 129 783 2 275
Net loss and comprehensive loss (3 925 ) (9 283 ) (15 697 ) (41 564 )
Net income attributable to non-controlling interest 66 152 (191 ) (740 )
Net loss and comprehensive loss attributable to shareholders (3 859 ) (9 131 ) (15 888 ) (42 304 )
Net loss and comprehensive loss per share
Basic and diluted (0,60 ) (3,02 ) (3,26 ) (14,01 )
Weighted average shares outstanding
Basic and diluted 6 396 309 3 019 712 4 879 738 3 019 259
Contact Information:
Investor Contact:
Patrick Houston
DragonWave Inc.
+1-613-599-9991 ext 2278

Media Contact:
Nadine Kittle
Marketing Communications
DragonWave Inc.
+1-613-599-9991 ext 2262

BlackBerry Announces Final Award in Qualcomm Arbitration

WATERLOO, ONTARIO–(Marketwired – May 26, 2017) – BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) announced today that it has reached an agreement with Qualcomm Incorporated resolving all amounts payable in connection with the interim arbitration decision announced on April 12, 2017. Following a joint stipulation by the parties, the arbitration panel has issued a final award providing for the payment by Qualcomm to BlackBerry of a total amount of U.S.$940,000,000 including interest and attorneys’ fees, net of certain royalties due from BlackBerry for calendar 2016 and the first quarter of calendar 2017. Qualcomm will pay the full amount of the final award on or before May 31, 2017.

About BlackBerry

BlackBerry is a mobile-native security software and services company dedicated to securing people, devices, processes and systems for today’s enterprise. Based in Waterloo, Ontario, the company was founded in 1984 and operates in North America, Europe, Asia, Middle East, Latin America and Africa. The Company trades under the ticker symbols “BB” on the Toronto Stock Exchange and “BBRY” on the NASDAQ. For more information, visit www.BlackBerry.com.

Contact Information:
BlackBerry Media Contact:
BlackBerry Media Relations
(519) 597-7273

BlackBerry Investor Contact:
BlackBerry Investor Relations
(519) 888-7465

New Target Date for Second Iridium® NEXT Launch

MCLEAN, Va., May 25, 2017 (GLOBE NEWSWIRE) — Iridium Communications (NASDAQ:IRDM) today announced the second launch for the Iridium NEXT satellite constellation has been moved earlier, and is now targeted for June 25, 2017 at 1:24:59 PDT with an instantaneous launch window.  SpaceX informed Iridium that range availability had opened up at Vandenberg Air Force Base (VAFB) in California, where SpaceX’s west coast launch facility is located, and planned to target Iridium’s launch four days earlier than originally scheduled. This launch will deliver the second payload of 10 Iridium NEXT satellites to orbit, bringing the total to 20 Iridium NEXT satellites in space.

“We’re excited for this next launch,” said Matt Desch, chief executive officer, Iridium. “Satellites have already started to arrive at the launch site and are undergoing pre-launch preparations, so we’ll be ready to go.  An earlier launch date is all the better for our constellation deployment plans.”    

Iridium has partnered with SpaceX for a series of eight launches scheduled to take place through mid-2018, delivering a total of 75 satellites to low-Earth orbit. Iridium NEXT is replacing the Company’s existing constellation of satellites with more powerful capabilities, including Aireon’s space-based global real-time aircraft surveillance and tracking service.

For more information and up-to-date information about Iridium NEXT, please visit www.IridiumNEXT.com .

About Iridium Communications Inc.
Iridium is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. The company has a major development program underway for its next-generation network — Iridium NEXT. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the NASDAQ Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services and partner solutions, visit www.iridium.com

Media contact:
Jordan Hassin
Iridium Communications Inc.
+1 (202) 232-6601
Twitter: @Iridiumcomm

Investor Contact:
Kenneth Levy
Iridium Communications Inc.
+1 (703) 287-7570
Twitter: @IridiumIR

Primary Logo