* Q1 EPS C$0.03 vs C$0.18 year ago
* Total revenue down 22 pct
* Sees 2011 net earnings of C$5.5-C$9.5 mln; revenue of C$77-C$87 mln
* Says new customer wins tough to come by
* Shares slip to a 20-month low (Adds CEO comments, analyst quote, share movement)
May 13 (Reuters) - Canada’s Bridgewater Systems Corp slashed its full-year outlook and said carriers are not committing to deals due to budget pressures, sending shares of the telecoms software company to a 20-month low.
Bridgewater Systems provides software that helps carriers manage subscriber access to applications and network resources — like bandwidth — alleviate network congestion by offloading data traffic to Wi-Fi, and migrating to 3G and 4G.
“It has been a more challenging environment in which to secure new customers and predict timing for new wins,” Chief Executive Ed Ogonek said on a conference call.
Bridgewater, which competes with Sandvine Corp and Redknee Solutions Inc , said operators have been resorting to short-term fixes like adopting legacy technology or delaying decisions, which may hurt its sales in the near term.
Last month, Sandvine reported a drop in first-quarter revenue, albeit a smaller dip than what it had warned of, citing order delays. [ID:nL3E7F61TV]
Shares of Ottawa, Ontario-based Bridgewater were trading down 12 percent at C$6.85 on Friday late morning. They were one of the top percentage losers on the Toronto Stock Exchange.
The budget for all carriers is for their core business - which is to upgrade existing networks from say 3G to 4G or to launch new networks, but it is not there for refining the network, said analyst Sameet Kanade of Northern Securities.
Bridgewater, whose customers include Saudi Arabia’s Etihad Etisalat (Mobily) and Verizon Wireless, is traditionally known to raise its outlook.
It now expects to earn C$5.5-C$9.5 million in 2011, down from its prior view of C$10.5-C$14.0 million. It cut its revenue forecast to C$77-C$87 million from C$88.0-C$100.0 million.
In March, Bridgewater said it expected results for the first half of 2011 to be flat to down from the year-ago period after its contract with a key customer, Alcatel-Lucent , ended last October.
Bridgewater, which has seen network congestion and greater use of smartphones drive demand for its products and services, also said a large contract it expected in the first quarter did not materialize.
Bridgewater’s first-quarter net income fell to C$871,998 ($906,066.96), or 3 Canadian cents a share, from C$4.5 million, or 18 Canadian cents a share, a year ago.[ID:nASA025E8]
$1 = 0.962 Canadian Dollars Reporting by Bhaswati Mukhopadhyay; Editing by Maju Samuel, Prem Udayabhanu