Telecom Lead America: DragonWave, which acquired Nokia Siemens’ microwave technology business last June, said it would cut 33 percent of its senior management jobs.
The struggling telecom equipment maker is also amending its deal with Nokia Siemens Networks to reduce operating costs.
DragonWave said last month that it would cut costs further but did not specify what the measures were.
The company cut 116 jobs in Ottawa and Israel in 2012, Reuters reported.
On 4 March, 2013, DragonWave announced revised revenue expectations for its fourth quarter fiscal year 2013, ended February 28, 2013, of approximately $30 million.
The supplier of packet microwave radio systems for mobile and access networks said the main area of shortfall behind the revised revenue guidance is lower revenue from Nokia Siemens during the fourth quarter when compared to Q3 FY13.
According to the renewed deal, Nokia Siemens will make an immediate cash payment of $13.8 million to DragonWave, clearing the contingent receivable on the Ottawa-based company’s balance sheet.
DragonWave said the companies have ended the Italian services agreement, under which Nokia Siemens provided research and development and certain other services to DragonWave since June 2012.
DragonWave expects operating costs to fall by about 3 million euros per quarter. Nokia Siemens will take on additional commitments and costs.
DragonWave, which uses microwave technology to move data between cellular towers and telecom networks, warned in March that fourth-quarter revenue would miss its forecast due to lower sales in the unit.
The unit contributed $25.6 million, or about 67 percent, to DragonWave’s revenue in the third quarter.
DragonWave said on Wednesday it expects to pay a termination fee of about 7 million euros over the balance of fiscal year 2014.
It would continue to be the preferred supplier of packet microwave and related products to Nokia Siemens, and both companies would jointly coordinate technology development activities.
