DragonWave Inc DRWIQ

DragonWave shares hit all-time high on results

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DragonWave shares hit all-time high on results

(Adds conference call details, CEO, CFO comments)

By Koustav Samanta

BANGALORE, Jan 8 (Reuters) - Shares of DragonWave Inc surged as much as 14 percent to touch their lifetime high on Friday, a day after the supplier of packet microwave radio systems posted better-than-expected quarterly results and raised its fiscal 2010 revenue outlook.

For the third quarter, the company net income was C$12.6 million, or 37 Canadian cents a share, from a year-ago loss, as it made huge gains in the North American market.

The company said it was working to diversify its revenue stream and had added 13 new customers from outside North America in the third quarter.

"I think we are going to see some growth in Europe and Africa. But, it is going to be at a much lower rate than probably any other region," Chief Executive Peter Allen told Reuters on Thursday.

The CEO said the company has recently opened a sales office in Singapore and plans to open another new office in Australia as it signed an agreement with Unwired Australia to supply wireless backhaul for Australia’s first 4G mobile WiMAX network deployment.

The gross margin of 43 percent in the third quarter was at the higher end of its expected range, and DragonWave now expects margins to normalize in the current quarter and thereafter, Chief Financial Officer Russell Frederick said in a conference call with analysts.

Shares of the Ottawa-based company were up 8 percent, or 96 Canadian cents, at C$13.58 in morning trade on the Toronto Stock Exchange. They touched a high of C$14.34 earlier in the day. (Reporting by Koustav Samanta in Bangalore; Editing by Anil D’Silva)