November 5, 2009 / 1:29 PM / in 8 years

CORRECTED - CORRECTED-UPDATE 2-Bridgewater Q3 profit tops estimates, raises

(Corrects percentage figure in paragraph 5 to 10 percent, from 30 percent)

* Q3 EPS C$0.07 vs est C$0.05/shr

* Q3 revenue up 53 pct to C$15.8 mln

* Raises 2009 view on higher revenue expectations

* Says wins contract with Tier-1 GSM operator (Recasts; Adds conference call details, analyst comment, updates share movement)

By Ashutosh Joshi

BANGALORE, Nov 5 (Reuters) - Bridgewater Systems Corp BWC.TO, which helps telecom operators manage mobile data traffic, posted a third-quarter profit above analysts’ estimates, and raised its 2009 view, aided by a multi-year contract with a Tier-1 GSM customer it won in the quarter.

On a conference call, the company said it was looking to win more Tier-1 customers in different geographies.

It also said the new contract would recognize some revenue in the current quarter, with most of it coming in 2010.

“We have had a multi-million contract with them. First focus on deployment is for a WiMax network and then integration of some key capabilities of WiMax into their GSM infrastructure,” Chief Executive Ed Ogonek said.

Bridgewater, which gets about 10 percent of its business through channel partnerships with companies such as Hewlett-Packard Co (HPQ.N), said it was expecting significant contribution from the partners as it expands outside North America.

The company now expects to earn between C$9.5 million to C$10 million in 2009 on revenue of C$62 million to C$64 million.

It had earlier forecast full-year earnings of C$8 million and C$10 million, on revenue of C$58 million to C$62 million.

Analysts on average were expecting the company to earn C$9.5 million, on revenue of C$61 million in 2009, according to Thomson Reuters I/B/E/S

Q3 TOPS ESTIMATES

For the third quarter, the company earned C$1.7 million, or 7 Canadian cents a share, up from C$483,409, or 2 Canadian cents a share, a year ago.

Revenue grew 53 percent to C$15.8 million, boosted by higher license revenue and the delivery of its WideSpan systems to Verizon Wireless and Cricket Communications.

“Despite the forex headwind, they not only beat estimates, but also increased their full-year estimates... The quarter was extremely strong and the company continues to highlight the strong growth path it is on,” M Partners analyst Sameet Kanade said by phone.

The analyst who has a “buy” rating on Bridgewater stock said the outlook for the company was extremely positive and its biggest customer, Verizon Wireless, alone could help it meet about 70 percent to 80 percent of its estimates.

Analysts were expecting the company to earn 5 Canadian cents a share, on revenue of C$14.6 million.

Shares of the company, which have doubled in the last 6 months, were down 18 Canadian cents or about 2 percent at C$9.72 Thursday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Vinu Pilakkott, Unnikrishnan Nair)

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