July 30, 2009 / 2:32 PM / 8 years ago

UPDATE 3-Bridgewater posts higher Q2 profit, raises FY outlook

* Q2 EPS C$0.17 vs C$0.05 last year

* Revenue up 36 pct

* Raises FY revenue, earnings outlook

* Shares jump 15 pct to touch a new 52-week high (Adds CEO, analyst comments, updates share movement)

By Ashutosh Joshi

July 30 (Reuters) - Canada’s Bridgewater Systems Corp BWC.TO posted higher quarterly profit, driven in part by new orders for its WideSpan system, and raised its full-year outlook, sending its shares up as much as 15 percent.

The company, which provides mobile personalization services to telecom operators, said second-quarter results were also helped by “momentum in the WiMAX market” and continued strength in its core markets.

Bridgewater, which has C$57.6 million in cash on hand and no debt, said it was looking to increase its global footprint and made “good progress in terms of a targeted set of companies.”

“I think where we are today it’s possible we could execute an acquisition in the back end, second half of this year,” Chief Executive Ed Ogonek said on a conference call with analysts. “It’s not something imminent.”

Ogonek told Reuters that Bridgewater was interested in companies that could bring in more customers, particularly outside North America.

Bridgewater now expects full-year earnings between C$8 million and C$10 million, on revenue of C$58 million to C$62 million.

The company’s prior expectations were earnings between C$7 million and C$9 million, on revenue of C$54 million to C$58 million.

The company, whose customers include operators like Verizon Wireless VZ.N and Sprint Nextel S.N, raised its outlook citing multi-year contracts with Tier 1 customers, large customer base, and long-term industry trends, particularly the growth in mobile data services and applications.

Q2 PROFIT RISES

For the second quarter, Bridgewater earned C$4.1 million ($3.8 million), or 17 Canadian cents a share, compared with C$1.3 million, or 5 Canadian cents a share, in the year-ago period.

Quarterly revenue rose 36 percent to C$16.1 million.

Analysts on average were expecting earnings of 7 Canadian cents a share, on revenue of C$13.3 million for the quarter, according to Reuters Estimates.

Bridgewater said revenue rose partly due to the delivery of the WideSpan system, which helps carriers manage mobile data transactions, to Verizon and Cricket Communications.

The WideSpan system used by Verizon is transaction based, Toll Cross Securities analyst Manish Grigo said. “Higher the number of data transactions, the more they (Bridgewater) get paid.”

“That’s a good revenue model going forward, because volume of data is growing 100 percent over last couple of years.”

Shares of the Ottawa-based company rose 82 Canadian cents to C$6.92 in afternoon trade Thursday on the Toronto Stock Exchange. They touched a 52-week high of C$7.02 earlier in the day. ($1=1.087 Canadian Dollar) (Additional reporting by Isheeta Sanghi; Editing by Ratul Ray Chaudhuri)

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