OTCPK:DRWIQ - Post by User
Post by
Ranger56on Sep 05, 2014 1:05pm
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Post# 22910306
Just talked to IR
Just talked to IRGot lucky and just got off the phone with IR. Quite a good discussion.
FYI-- I did not call them, I emailed them, and they responded with an invite to talk on the phone.
I will share some non confidential points on the call:
1. They remain confident a turnaround is underway. Somewhat guarded as looking at a steady longer term improvement. Suggested to pay close attention to quarterly results to see the trend in fundamentals.
2. Reaching break even is a critical motivation in the company. I was reminded that Peter Allen was suggesting on the earnings call and interviews that break even is likely within a year. It sounds like 2 to 3 quarters.
3. I indicated that senitment shifted from positive to negative after the recent dilutive equity raise and being a show me stock, very tough for sentiment to recover from this to the positive side. They responded that this was a tough decision, but that Customers like to see healthy balance sheets and a going concern when deciding to standardize on equipment and place orders, and therefore it was needed and the right decision.
4. I indicated frustration as to the lack of news flow with regard to new contracts, new orders, installation progress and partly explains the slight pull back after the new Harmony Enhanced product announced. I suggested people more interested in new contracts than new product right now. It was explained that Customers do not like having the spotlight on them with news flow like this for competitive reasons so they have to be guarded and careful on this.
5. I was reminded that SPRINT is real. They are a good customer and have standardized on DWI as one of their network suite of products, and do purchase their product. There was no suggestion that there was a big new order coming, they cannot say this, but they can remind us they are a good Customer. It is hard to see this, as they don't breakdown their results by Customer due to Customers wanting to keep a low profile (as mentioned before).
6. Finally, it was recommended to tune in to the September/9 presentation at 10:50AM at the Rodman and Renshaw Global Investment Conference. The presentation will be webcast. A new slide deck is coming out and will serve as a good update. It was suggested that a few words about SPRINT likely to come up in the presentation. Check out the press release announcing this.
https://investor.dragonwaveinc.com/releases.cfm