OTTAWA - Bridgewater Systems has revised upward its 2010 financial outlook, projecting a revenue increase of as much as 41 per cent over last year on an anticipated surge in demand for technology used in smartphones and other mobile devices.
The wireless software developer said Thursday it expects to book revenue of $85 million to $94 million over the full year. That was up from its original forecast of $82 million to $92 million in February and significantly higher than the $66.7 million it booked in 2009.
The Ottawa company said net earnings before tax would be in the range of $14 million to $17 million while net earnings after tax would be between $10 million and $12 million. It booked net income of $11.2 million last year.
The company, which supplies technology for wireless networks, cited "significant contracts with Tier 1 customers, a large customer base in existing and emerging markets and long-term industry trends of growth in mobile data services and applications" for the revised outlook.
Bridgewater (TSX:BWC) says its profit increased 60 per cent to $4.6 million or 19 cents a share in the first quarter ended March 31. That compared with $2.9 million or 12 cents a share in the same year-ago period.
Revenue jumped 74 per cent to $24.5 million.
"Current customer engagements drove significant increases in revenues and earnings in the first quarter," stated chief executive Ed Ogonek.
"Mobile service providers globally are increasingly challenged by the surge in data traffic, which is generating growing interest in our intelligent control solutions, reflected in a robust new business pipeline," Ogonek said.
"We are focused on converting this interest into new customer wins during 2010, particularly outside North America, while expanding our business with current customers as they manage quickly growing mobile data traffic across 3G and 4G networks."
Bridgewater, headquartered in Ottawa, has about 240 employees with offices in the United Kingdom, France, Spain, Germany, Singapore, Hong Kong, Australia and India.
The company's stock was up 26 cents at $9.75 at midday Thursday on the Toronto Stock Exchange.