DragonWave Inc. said it expects fourth-quarter revenue to miss its own estimates due to delays in shipments to some customers in North America, Japan and the Middle East, sending its shares down as much as 11 per cent.
The supplier of high-capacity broadband wireless networking systems expects a revenue of about $9.4-million (U.S.) in the quarter ended Feb. 29, revised from its earlier estimate of between $12-million and $15-million.
Analysts were expecting DragonWave, which counts telecom carriers and governments among its clients, to post a revenue of $13.9-million, according to Thomson Reuters I/B/E/S.
Avian Securities analyst Matthew Thornton said DragonWave's results for the quarter were hit by delays in at least three large orders because of delays in regulatory approvals or customer build-outs.
Mr. Thornton also expects the company's pending acquisition of Nokia Siemens Networks' microwave business to stretch its finances in the near term.
"I think they're going to have a tough time in the next 3-4 quarters as they integrate that deal," he said.
DragonWave, which has posted losses in the last five quarters, has struggled to offset a cutback in spending at its major customer Clearwire Corp. , a cash-strapped U.S. wireless provider that got a $1.6-billion lifeline in December from its majority owner Sprint Nextel Corp.
Shares of Ottawa-based DragonWave have lost about half their value over the last year.