DragonWave (DRWI) to Cut 48 Positions; Updates Q213 Sales Outlook
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DragonWave Inc. (Nasdq: DRWI), 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 approximately US$1.0 million, and a one-time cash usage in the third quarter of fiscal year 2013 of approximately US$1.6 million.
DragonWave also updated its revenue guidance for the second quarter of fiscal year 2013. DragonWave now expects revenue for the quarter ended August 31, 2012 to be above US$40 million. This revenue estimate is subject to DragonWave's quarter-end closing and review procedures. The Street is looking for revs of $39.8 million.
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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 approximately US$1.0 million, and a one-time cash usage in the third quarter of fiscal year 2013 of approximately US$1.6 million.
DragonWave also updated its revenue guidance for the second quarter of fiscal year 2013. DragonWave now expects revenue for the quarter ended August 31, 2012 to be above US$40 million. This revenue estimate is subject to DragonWave's quarter-end closing and review procedures. The Street is looking for revs of $39.8 million.
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