DragonWave announced that it has implemented several structural adjustments to reflect the company's integration plan for the recently-completed acquisition of Nokia Siemens Networks' microwave transport business. In order to better align costs with revenues, DragonWave will eliminate 68 positions from the company's workforce in Ottawa and Israel. DragonWave expects to save approximately $6M in annual operating expenses as a result of this staff reduction. DragonWave anticipates restructuring charges in Q1 as a result of the elimination of these positions to be approximately $0.8M, and a one-time cash usage in Q2 of $1.5M. DragonWave added that it has established a distribution capability in Venray, Netherlands to complement its existing logistics capabilities in Ottawa and Penang, Malaysia, and is staffing new regional subsidiaries in Mexico and Brazil.
Happy demi-anniversary, stock market rally. Will the honeymoon ever end?