DragonWave (DRWI) Announces Corporate Streamlining; Will Cut 68 Positions
Tweet
Share
E-mailGet Alerts DRWI Hot Sheet
Join SI Premium – FREE
DragonWave Inc. (Nasdaq: DRWI) has implemented several structural adjustments to reflect DragonWave's global integration plan for the recently-completed acquisition of Nokia Siemens Networks' microwave transport business.
In order to better align costs with revenues, DragonWave will eliminate 68 positions from the company's workforce in Ottawa and Israel. DragonWave expects to save approximately US$6 million in annual operating expenses as a result of this staff reduction. DragonWave anticipates restructuring charges in the first quarter fiscal year 2013 as a result of the elimination of these positions to be approximately US$0.8 million, and a one-time cash usage in the second quarter of fiscal year 2013 of approximately US$1.5 million.
In order to support the anticipated increase in breadth of end-customers and volumes of shipments resulting from the combination of the DragonWave and Nokia Siemens Networks' microwave businesses, DragonWave has established a distribution capability in Venray, Netherlands to complement its existing logistics capabilities in Ottawa and Penang, Malaysia.
In order to better support its expanded global footprint DragonWave is staffing new regional subsidiaries in Mexico and Brazil and will increase the staff levels in certain other regional offices. This global presence will augment the previously-announced services arrangement between DragonWave and Nokia Siemens Networks in Italy, and an interim services agreement between the same parties that has been entered into pending the completion of the acquisition of Nokia Siemens Networks' microwave transport operations in China.
In order to better align costs with revenues, DragonWave will eliminate 68 positions from the company's workforce in Ottawa and Israel. DragonWave expects to save approximately US$6 million in annual operating expenses as a result of this staff reduction. DragonWave anticipates restructuring charges in the first quarter fiscal year 2013 as a result of the elimination of these positions to be approximately US$0.8 million, and a one-time cash usage in the second quarter of fiscal year 2013 of approximately US$1.5 million.
In order to support the anticipated increase in breadth of end-customers and volumes of shipments resulting from the combination of the DragonWave and Nokia Siemens Networks' microwave businesses, DragonWave has established a distribution capability in Venray, Netherlands to complement its existing logistics capabilities in Ottawa and Penang, Malaysia.
In order to better support its expanded global footprint DragonWave is staffing new regional subsidiaries in Mexico and Brazil and will increase the staff levels in certain other regional offices. This global presence will augment the previously-announced services arrangement between DragonWave and Nokia Siemens Networks in Italy, and an interim services agreement between the same parties that has been entered into pending the completion of the acquisition of Nokia Siemens Networks' microwave transport operations in China.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing names Ryan Shedd as new SVP and controller
- Lazard Global Total Return fund declares $0.1534 monthly distribution
- Home Depot expands executive roles, grants $500K in restricted stock
Create E-mail Alert Related Categories
Corporate News, Trading HaltsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
