This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

DragonWave Drops After Sales Exec Resigns

NEW YORK ( TheStreet) -- Shares of DragonWave (DRWI - Get Report) fell sharply on Wednesday after a longtime sales executive abruptly announced plans to resign from the company.

Brian McCormack is leaving the post of vice president of worldwide sales with DragonWave, a Canada-based provider of packet microwave radio systems for mobile and access networks. McCormack, who joined the company in 2003, is staying to help with transition for the next 45 days.

The stock was recently down 12.7% at $5.52 on volume of 980,000, more than three times the issue's trailing three-month daily average of roughly 330,000.

"We are grateful to Brian for his contribution and service at DragonWave," said Peter Allen, the company's president and CEO, in a statement. "We appreciate what he has done for the company and wish him well in his future endeavors."

DragonWave said regional sales executives will now report directly to Allen. The company is sure to face plenty of questions about McCormack's departure later Wednesday as it's slated to report its fiscal first-quarter results after the closing bell.

Year-to-date, the stock was down about 25% before Wednesday's sell-off with the most recent pullback coming after the company lowered its outlook for the first quarter on June 3 to revenue of $11 million from a prior projection of $15 million. For the past 52 weeks, the shares are still up almost 18% with the high for the year of $9.20 dating back to Dec. 14.

DragonWave cited the deferral of a "significant" equipment by a customer in North America, and the impact of regulatory delays on a customer in the Middle East for the lower revenue view.

Wall Street was pretty bearish on DragonWave ahead of McCormack's resignation with 10 of the 12 analysts covering the stock at either hold (6), underperform (1) or sell (3). The average analysts' estimate is for DragonWave to report a loss of 19 cents a share for its fiscal first quarter ended in May.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DRWI $0.19 -1.12%
AAPL $110.78 0.36%
FB $94.01 2.11%
GOOG $641.47 2.32%
TSLA $246.15 -0.57%


Chart of I:DJI
DOW 16,776.43 +304.06 1.85%
S&P 500 1,987.05 +35.69 1.83%
NASDAQ 4,781.2640 +73.4890 1.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs