DragonWave Beats on the Top Line
Jul 12th 2012 11:20AM
Updated Jul 12th 2012 11:24AM
DragonWave (NAS: DRWI) reported earnings on July 11. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q1), DragonWave beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share improved.
Gross margin shrank, operating margin improved, and net margin dropped.
DragonWave reported revenue of $12.8 million. The eight analysts polled by S&P Capital IQ expected sales of $12.0 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $11.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.34. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.27 per share. GAAP EPS were -$0.35 for Q1 compared to -$0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.9%, 1,010 basis points worse than the prior-year quarter. Operating margin was -75.0%, 1,460 basis points better than the prior-year quarter. Net margin was -97.0%, 750 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $49.2 million. On the bottom line, the average EPS estimate is -$0.26.
Next year's average estimate for revenue is $174.9 million. The average EPS estimate is -$0.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 255 members out of 268 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give DragonWave a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DragonWave is hold, with an average price target of $3.68.
Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does DragonWave fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in our free report: "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add DragonWave to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.