Following its recently-completed acquisition of Nokia Siemens Networks’ microwave transport business, DragonWave said it 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.
DragonWave announced a number of other changes, including the establishment of a distribution capability in Venray, Netherlands to complement its existing logistics capabilities in Ottawa and Penang, Malaysia. In order to better support its expanded global footprint DragonWave is staffing new regional subsidiaries in Mexico and Brazil and will increase the staff levels in certain other regional offices. This global presence will augment the previously-announced services arrangement between DragonWave and Nokia Siemens Networks in Italy, and an interim services agreement between the same parties that has been entered into pending the completion of the acquisition of Nokia Siemens Networks’ microwave transport operations in China.
“The thrust of the actions we have announced today is to position ourselves properly to serve our global customer set, to support our expanded product portfolio, to accelerate the rate of innovation, and to reduce costs,” said Peter Allen, DragonWave’s President and CEO. http://www.dragonwaveinc.com
