Atlanta, GA 7/12/12 (StreetBeat) -- Shares of DragonWave Inc (Nasdaq:DRWI) fell as much as 13 percent after the telecom network equipment maker posted a loss for the seventh straight quarter.
Gross margin for the company, which uses microwave technology to move data between cellular towers and telecom networks, also fell in the first quarter.
"With the difficult global business climate, we believe some of the expected revenue synergies (with Nokia Siemens Networks) may take longer to materialize," Raymond James analyst Steven Li said in a note to clients.
DragonWave acquired Nokia Siemens Networks' NOKI.UL microwave technology business in November [ID:nL4E7M410P].
Li downgraded the company's stock to "market perform" from "outperform" and cut his price target by 50 Canadian cents to C$3.50.
"Given our lower conviction on DragonWave's outlook and integration and execution risks going forward, we recommend waiting for a higher appreciation potential," Li said.
Toronto-listed shares of DragonWave touched a six-week low of C$3.08, while U.S.-listed shares hit a five-week low of $3.02 in early trading. The stock was one of the top percentage losers on both the exchanges.
Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail email@example.com or call (662) 392-0740 for pricing and scheduling.