10 September 2012

DragonWave to cut 48 jobs in Ottawa and Israel

Ottawa, Canada – 10 September 2012 (Marketwire) - DragonWave Inc., a leading global supplier of packet microwave radio systems for mobile and access networks, today announced that it has implemented several cost saving measures to reduce expenses and associated cash consumption. 

DragonWave will eliminate 48 positions across all functions from the company's workforce primarily in Ottawa and Israel. DragonWave expects to save approximately US$6 million in annual operating expenses as a result of these staff reductions and other measures. DragonWave anticipates restructuring charges in the third quarter of fiscal year 2013 as a result of the elimination of these positions to be approximatelyUS$1.0 million, and a one-time cash usage in the third quarter of fiscal year 2013 of approximately US$1.6 million. 

Peter Allen, DragonWave's President and CEO, said "We have now completed our first full quarter of expanded operations that include the microwave transport business acquired from NSN on June 1, 2012. We are utilizing this experience to rationalize our operations, with a focus on reducing recurring costs. Transition and integration activities with NSN are ongoing and we continue to evaluate the appropriate scale for the combined business. We will closely monitor the need to adjust our cost profile as these activities progress and as we gain greater visibility into revenue opportunities." 

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. 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. 

Source: DragonWave