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Last Update: 11-Oct-12 07:40 ET
DragonWave Trades Higher On Sprint Nextel News; Co Also Reported Earnings Late Yesterday
DragonWave (DRWI) is rising in the pre-market on reports that Sprint Nextel (S) is in discussions with Softbank on a potential $12.8 bln stake in Sprint Nextel. DragonWave, a provider of telecom equipment, has suffered from a cutback in spending at what was once its largest customer Clearwire (CLWR), a cash-strapped US wireless provider that is majority-owned by Sprint Nextel. Nokia Siemens is currently DRWI's largest customer. The hope is that this deal could reignite spending by Clearwire in its wireless network which would benefit DRWI. DRWI is trading at $2.65 (+20%) in pre-mkt.
Also, the company reported a second quarter loss of $0.03 per share after the close yesterday, which may not be comparable to the Capital IQ Consensus Estimate of ($0.25); results include a one-time gain of $19.4 million related to the accounting treatment for the acquisition of the Nokia Siemens Networks microwave transport business. Revenues rose 225.0% year/year to $44.2 mln vs the $41.9 mln consensus. Cash, cash equivalents and restricted cash totaled $44 million, compared to $42.6 million at the end of the first quarter of fiscal year 2013. The company issued in-line guidance for the third quarter; sees third quarter revs of $43-50 million versus the $48.14 mln Capital IQ Consensus Estimate.
Also, the company reported a second quarter loss of $0.03 per share after the close yesterday, which may not be comparable to the Capital IQ Consensus Estimate of ($0.25); results include a one-time gain of $19.4 million related to the accounting treatment for the acquisition of the Nokia Siemens Networks microwave transport business. Revenues rose 225.0% year/year to $44.2 mln vs the $41.9 mln consensus. Cash, cash equivalents and restricted cash totaled $44 million, compared to $42.6 million at the end of the first quarter of fiscal year 2013. The company issued in-line guidance for the third quarter; sees third quarter revs of $43-50 million versus the $48.14 mln Capital IQ Consensus Estimate.
