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

Related articles:
Analyst: FiberTower backhaul deal helping DragonWave cut Clearwire strings
Clearwire-dependent DragonWave watches business erode
FiberTower loses more of Clearwire's business

Suggested Articles

YouTube TV’s price hike gives cable operators breathing room to run the next big TV race, which will be fought and won on the TV UX battleground.

Charter Communications said it will add five “Latino targeted TV networks” to its Spectrum TV lineup.

Among pay TV subscribers and broadband-only subscribers, YouTube and Netflix were among the favorite services featured in makeshift video bundles.