DragonWave Implements Structural Adjustments to Support Combined Business
DragonWave Inc. (TSX:DWI)(NASDAQ: DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, announced today that it has implemented several structural adjustments to reflect DragonWave's global 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 US$6 million in annual operating expenses as a result of this staff reduction. DragonWave anticipates restructuring charges in the first quarter fiscal year 2013 as a result of the elimination of these positions to be approximately US$0.8 million, and a one-time cash usage in the second quarter of fiscal year 2013 of approximately US$1.5 million.
In order to support the anticipated increase in breadth of end-customers and volumes of shipments resulting from the combination of the DragonWave and Nokia Siemens Networks' microwave businesses, DragonWave has established a distribution capability in Venray, Netherlands to complement its existing logistics capabilities in Ottawa and Penang, Malaysia.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.