DragonWave continues to struggle as it expands beyond Clearwire

Clearwire (Nasdaq: CLWR) may see some light at the end of its financial tunnel, but one of its leading vendors, wireless backhaul provider DragonWave (Nasdaq: DRWI), continues to struggle to make up for business it lost when Clearwire slowed down its construction plans.

As late as last year, Clearwire comprised about 85 percent of DragonWave's business--and that dependence is reflected in fiscal year revenues of $118 million, down from $158 million a year ago, and net income of $2 million that took a dramatic dive from $27.8 million the prior year. In the fourth quarter, DragonWave generated $15.1 million in revenue compared with $61 million in 2010.

The company has recently seen some signs that things might be improving thanks to a less Clearwire-dependent customer base.

"We are actively engaged and well positioned with a number of major mobile operators in different geographies throughout the world and are working to expand channels and actively pursuing opportunities to make acquisitions," DragonWave President-CEO said in a news release.

For more:
- see this news release

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