DragonWave aims to reduce operating costs by 30 percent

dragonwave-and-small-cellDragonWave Inc., a supplier of packet microwave radio systems for mobile and access networks, aims to reduce operating costs by 30 percent.

The US-based DragonWave plans to achieve cash flow break even at anticipated revenue and margin levels.

DragonWave said it will reduce focus on discontinued legacy products, streamlining G&A expenses, and deemphasizing lower margin regions. The operating plan preserves sales, operations and R&D and takes advantage of market traction for its products, Harmony Enhanced and Enhanced Multi Channel.

DragonWave aims to achieve near term break even on an adjusted cash basis. DragonWave has presented the plan to DragonWave’s key lenders with the goal of increased financing flexibility to execute the plan, and attempt to maintain its NASDAQ listing.

Claude Haw, chairman of DragonWave, said: “DragonWave is striving to realign the business for near term break even, while positioning ourselves to grow with many of the already won longer term customers we are currently serving.”

ALSO READ: wireless backhaul marketplace report

The mobile and wireless backhaul market is poised to grow during 2017-2024. The use of phones and other gadgets, the boom of cell information traffic and technological innovations and advancements are driving the growth in the backhaul market. With small cells and wi-fi hot spot consumption by the mobile operators and strained data volume leading to the requirement of higher bandwidth spectrum.

Meanwhile, Aviat Networks, a supplier of microwave networking solutions, last month said that the company expects to report profitability. Revenue in second quarter in fiscal 2017 is expected to be $67 – $69 million against the prior guidance of $65 – $70 million.

In addition, Aviat Networks said its cash position has increased by nearly $3 million against the first quarter of fiscal 2017. The company had previously guided its cash expectations to a flat or modest decline versus the prior quarter.

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