Shares of DragonWave (DragonWave Stock Quote, Chart, News: TSX:DWI, Nasdaq:DRWI) are up today after the company announced it has received orders for more than $10-milllion from an unnamed Tier One North American carrier.
The company says much of the order will entail providing engineering planning and installation services to support upgrades to the company’s national 4G/LTE network. DragonWave will supply its Horizon Compact+ and Horizon Quantum bandwidth accelerators, which it says deliver industry leading spectral efficiency and wireless capacity.
“These contracts represent a significant increase in our services business, and we are proud to have DragonWave products deployed by a leading Tier 1 partner committed to delivering a top-quality network experience to its customers,” said CEO Peter Allen. “We look forward to playing a supportive role in building out a next-generation network that fully meets the growing demand for wireless services.”
Investors are no doubt hoping today’s action represents a much needed reversal in DragonWave’s fortunes. The company has been sliding since a runup it its shares peaked near $14 in the early days of 2010. The Ottawa-based firm, which is also listed in the U.S., currently has a consensus rating of “Hold” from eight firms covering it.
At press time, shares of DragonWave on the TSX were up 16.8% to $1.25.