November 2, 2010 / 11:28 AM / 7 years ago

UPDATE 2-Bridgewater raises FY forecast on mobile growth

3 Min Read

* Sees FY net earnings before tax at C$17-$18.5 mln

* Adds 32 new customers yr-to-date

* Q3 EPS C$0.13 vs est C$0.09

* Q3 rev up 52 pct

* Shares up 8 pct (Rewrites; adds conference call details, updates shares)

BANGALORE, Nov 2 (Reuters) - Telecoms software firm Bridgewater Systems Corp BWC.TO posted a quarterly profit above market estimates and raised its full-year outlook as it benefited from growth in mobile markets like China and India.

Ottawa, Ontario-based Bridgewater, whose rivals include Openwave Systems Inc OPWV.O, said growth is being boosted by the popularity of smart phones, proliferation of mobile data applications, unlimited flat-rate plans and new devices like tablets.

China is the world's largest cell phone market and India the fastest growing one.

Bridgewater provides solutions that help 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.

The Canadian company, whose customers include Saudi Arabia's Etihad Etisalat's 7020.SE (Mobily) and Verizon Wireless, said it added 32 new service provider customers in the fiscal year to date, of which six were in the Asia-Pacific region.

"Looking ahead, there are a number of key mobile trends that are expected to fuel further demand for our technology and support our continued growth," Chief Executive Ed Ogonek said on a conference call with analysts.

"Mobile data traffic continues to grow rapidly, as new smart devices, applications, 3G and 4G subscribers continue to join the mobile ecosystem."

For the full year Bridgewater, with a market value of about C$218.3 million, raised its net earnings before tax view to C$17-$18.5 million, and now sees revenue of C$92-$94 million.

The company said its revenue forecast is based partly on the fact that it expects to complete a new Verizon Wireless software-based transaction license agreement and initial recognition of revenue from this agreement.

Bridgewater posted a third-quarter profit of C$3.4 million, or 13 Canadian cents a share.

Revenue increased 52 percent to C$23.9 million. Product revenue, which accounts for 80 percent of total revenue, rose 65 percent to C$19.1 million.

Bridgewater shares, which have lost 6 percent in value since the company reported second-quarter results in July [ID:nSGE66S0HV], were trading up 2 percent at C$8.72 in morning trade on Tuesday on the Toronto Stock Exchange. They touched a high of C$9.19 earlier in the session. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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