May 1, 2009 / 7:57 PM / 9 years ago

UPDATE 2-Bridgewater posts Q1 profit, shares rise

* Q1 EPS C$0.12 vs. est. C$0.05

* Revenue up 64 pct to C$14 mln

* Updates 2009 outlook

* Shares rise 12 pct (Adds analyst comment; updates share movement)

By Ashutosh Joshi

BANGALORE, May 1 (Reuters) - Bridgewater Systems Corp BWC.TO, which provides mobile personalization services to telecom operators, swung to a quarterly profit as revenue surged 64 percent, and it tightened its 2009 forecast, sending its shares up 12 percent to a year-high.

“Second half of 2009 and in particularly the first half of 2010 are going to be exceedingly strong as momentum builds for the company,” M Partners analyst Husein Kirefu said.

For 2009, the company now expects net earnings in the range of C$7 million to C$9 million on revenue of C$54 million to C$58 million.

In February, it had forecast net earnings between C$6 million and C$9 million on revenue of C$52 million to C$58 million.

Analysts on average expected revenue of C$54 million for 2009, according to Reuters Estimates.

Kirefu, who has an “overweight” rating on the stock, said telecom operators are likely to spend more on improving the quality of their service, even as they cut their capital expenditures.

Companies like Bridgewater have an opportunity to help operators boost top line and cut costs, the analyst said.

For the first quarter, Bridgewater reported net earnings of C$2.9 million ($2.44 million), or 12 Canadian cents a share, compared with a net loss of C$0.7 million, or 3 Canadian cents per share, in the year-ago period.

Quarterly revenue rose 64 percent to C$14.0 million.

Bridgewater, whose customers include operators like Verizon Wireless and Sprint Nextel (S.N), said revenue derived from the migration of telecom networks from 3G to 4G, contributed 11 percent to total revenue.

Analysts, on average, were expecting the company to earn 5 Canadian cents a share on revenue of C$12 million for the quarter, according to Reuters Estimates.

Shares of the Ottawa-based company were up 21 Canadian cents at C$4.46 Friday afternoon on the Toronto Stock Exchange. They touched a high of C$4.80 earlier in the day.

$1=1.187 CANADIAN DOLLAR Additional reporting by R. Manikandan; Editing by Jarshad Kakkrakandy and Deepak Kannan

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