April 29, 2010 / 11:51 AM / in 7 years

UPDATE 2-Bridgewater raises 2010 outlook, shares up

* Q1 EPS C$0.18 vs est C$0.09

* Revenue up 74 pct

* Shares rise 4 percent (Recasts; adds details from conference call)

April 29 (Reuters) - Canadian telecoms software firm Bridgewater Systems Corp BWC.TO posted better-than-expected quarterly results, driven by new customer wins, and raised its full-year outlook, sending its shares up 4 percent.

The company, whose customers include Saudi Arabia’s Etihad Etisalat’s 7020.SE (Mobily) and Verizon Wireless, said it expects to announce new customer wins through the coming quarters.

“We expect revenue contribution from 3G and 4G networks to grow over time,” Chief Financial Officer Kim Butler said on a conference call.

Bridgewater, which caters to operators in Asia Pacific and America, has been looking at 3G, 4G and technologies like long-term evolution (LTE) to boost growth.

It sees 2010 net earnings of C$14 million to C$17 million before tax, compared with its earlier forecast of C$13 million to C$16 million.

The company, which has seen growth in mobile data subscribers, expects 2010 revenue of C$85 million to C$94 million, up from its prior forecast of C$82 million to C$92 million.

Analysts on average were expecting 2010 earnings of 58 Canadian cents a share, on revenue of C$86.7 million, according to Thomson Reuters I/B/E/S.

It, however, expects to see some “lumpiness” quarter-on-quarter through 2010.

The company said it sees gross margins at 70 percent of revenue by the year end, versus 69 percent in 2009.

Q1 TOPS STREET

For the first quarter, the company posted a net income of C$4.6 million ($4.6 million), or 18 Canadian cents a share, compared with C$2.9 million, or 12 Canadian cents a share, a year ago.

Revenue for the company, which sells products to ease network congestion, rose 74 percent to C$24.5 million. Analysts on average were expecting the company to earn 9 Canadian cents a share, on revenue of C$19.7 million.

Product revenue rose 76 percent, driven by delivery of the WideSpan systems to Verizon Wireless, a joint venture of Vodafone Group Plc (VOD.L) and Verizon Communications Inc (VZ.N), and the largest U.S. wireless carrier.

WideSpan systems help telecom companies manage mobile transactions.

Shares of Bridgewater were up 31 Canadian cents at C$9.80 Thursday morning on the Toronto Stock Exchange.

$1=1.009 Canadian Dollar Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal

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