* Q2 EPS C$0.13 vs est C$0.10
* Q2 revenue up 41 pct
* Backs 2010 profit, revenue view
* Shares fall as much as 4 pct (Recasts; adds analyst comments, updates share movement)
July 29 (Reuters) - Telecoms software firm Bridgewater Systems Corp BWC.TO posted a higher-than-expected quarterly profit, but disappointed investors by not raising its full-year outlook, sending its shares down 4 percent.
The Canadian company, which makes products to ease network congestion, has consistently raised its outlook in the recent past.
“There are concerns about revenue lumpiness as to when do contracts get signed and when does revenue get recognized, and also about revenue growth in 2011,” analyst Sameet Kanade of Northern Securities said.
Shares of Bridgewater were down 40 Canadian cents at C$8.73 Thursday afternoon on the Toronto Stock Exchange.
Bridgewater still sees 2010 net earnings of C$14 million ($13.5 million) to C$17 million before tax, on revenue of C$85 million to C$94 million.
The company, whose customers include Saudi Arabia’s Etihad Etisalat’s 7020.SE (Mobily) and Verizon Wireless, added 17 new customers in the quarter, including 11 in the Asia-Pacific and Europe, the Middle East and Africa regions.
Analyst Kris Thompson of National Bank Financial said he expects new customer wins in the second half of 2010 will help the company beat its own revenue forecast range of C$85 million to C$94 million.
With growing network congestion, Canadian mobile software companies such as Bridgewater, Sandvine Corp SVC.TO and Redknee Solutions Inc (RKN.TO) are being seen as potential acquisition targets by network gearmakers. [ID:nSGE66I0J6]
For the second quarter, net income fell to C$3.2 million, or 13 Canadian cents a share, including C$1.4 million in income tax expenses. It earned C$4.1 million, or 17 Canadian cents a share, a year ago.
Total expenses was up 30 percent, while research and development expenses rose 61 percent.
Revenue increased 41 percent to C$22.7 million. Product revenue, which comprised more than two-thirds of total revenue, rose 47 percent.
Analysts on average were expecting earnings of 10 Canadian cents a share, on revenue of C$22.3 million, according to Thomson Reuters I/B/E/S.
$1=1.038 Canadian Dollar Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal