Bridgewater Systems Announces Preliminary Results for 2008 and Strong Outlook for 2009

    - Company also announces intention to file Normal Course Issuer Bid -

    OTTAWA, Feb. 5 /CNW/ - Bridgewater Systems Corporation (TSX: BWC), the
mobile personalization company, today announced its preliminary 2008 financial
results and provided guidance for 2009.
    For fiscal 2008, Bridgewater Systems expects to report record revenue of
approximately $44 million. During Q4 2008, the company completed initial
acceptance testing with a major mobile customer for its WideSpan deployment,
enabling the company to start recognizing WideSpan revenue in Q4. For fiscal
2008, operating margin is expected to be approximately 3% to 4% of revenue,
and net income will be approximately $3.5 million to $4.0 million, or between
$0.14 and $0.16 per diluted share, which includes a one-time restructuring
charge of $0.4 million in the fourth quarter. Operating margin and net income
exclude a reserve of approximately $1.1 million related to the Nortel
bankruptcy proceedings. Net cash increased to approximately $50 million as at
December 31, 2008.
    The 2008 financial results are preliminary and subject to completion of
the year-end audit. Bridgewater is expecting to release its full fiscal 2008
audited results and host a conference call on February 26, 2009.
    The company's outlook for 2009 remains strong despite a challenging
economic environment. Revenue is expected to be between $52 million and $58
million, representing growth of between 18% and 32% compared to preliminary
2008 results. The company is forecasting net income to be between $6 million
and $9 million, for 2009.
    "We have continued to deliver strong growth based on long-term contracts,
high revenue visibility, the launch of our WideSpan system and a solid balance
sheet," said Ed Ogonek, President and CEO of Bridgewater Systems. "In
addition, the industry trends remain in our favour, with data services
continuing to be the key growth driver for mobile service providers."
    In light of the strong year-end cash balance, outlook for 2009 and the
current share price, Bridgewater intends to file with the Toronto Stock
Exchange ("TSX") a notice of intent to conduct a normal course issuer bid
("NCIB") to purchase up to 1,148,962 common shares, representing up to 5% of
the company's issued and outstanding common shares. The NCIB is subject to the
approval of the TSX.

    Additional Information Regarding the NCIB

    The NCIB is subject to the submission to the TSX by Bridgewater Systems
Corporation (the "Company") of the required notice of intent to make the NCIB,
and the acceptance by the TSX of such notice. If approved by the TSX,
purchases pursuant to the NCIB will be made through the facilities of the TSX
and will be subject to the rules of the TSX. The Company will pay the market
price at the time of acquisition of any common shares purchased pursuant to
the NCIB, and all common shares acquired by the Company under the NCIB will be
cancelled. As at February 4, 2009, the Company had 22,979,242 common shares
issued and outstanding. The Company intends to pursue the NCIB because it
believes that, at certain times, the market price of its common shares may not
reflect the underlying value of its business and its future prospects. The
Company believes that the market price of its common shares could be such that
their purchase may be an attractive and appropriate use of corporate funds in
light of potential benefits to remaining shareholders. The Company has not
previously engaged in a NCIB and has not purchased any of its common shares in
the previous twelve months.
    The financial information reported above has been prepared in accordance
with Canadian generally accepted accounting principles and all dollar amounts
are denominated in Canadian funds.

    Tags / Keywords
    Bridgewater Systems


    About Bridgewater Systems

    Bridgewater Systems, the mobile personalization company, enables service
providers to efficiently manage and profit from mobile data services, content
and commerce. The company's market leading mobile personalization portfolio
provides a real-time, unified view of subscribers including entitlements,
devices, networks, billing profiles, preferences and context. Anchored by
Bridgewater's Subscriber Data Broker(TM), the portfolio of carrier-grade and
standards-based products includes the Bridgewater(R) Service Controller (AAA),
the Bridgewater(R) Policy Controller (PCRF) and the Bridgewater(R) Home
Subscriber Server (HSS). More than 100 leading service providers including
America Movil, Bell Canada, Clearwire, Hutchison Telecom, Leap Wireless,
Scartel, SmarTone-Vodafone, Sprint, Tata Teleservices, Tatung, Telmex,
Telstra, and Verizon Wireless use Bridgewater's solutions to rapidly deliver
innovative mobile services to over 150 million subscribers. For more
information, visit us at

    Bridgewater, Bridgewater Systems, the Bridgewater Systems logo, WideSpan,
and Subscriber Data Broker are trademarks or registered trademarks of
Bridgewater Systems Corporation. All other company, product names and any
registered and unregistered trademarks mentioned are used for identification
purposes only and remain the exclusive property of their respective owners.

    Certain statements in this release, including the guidance provided
above, constitute forward-looking statements or forward-looking information
within the meaning of applicable securities laws and are made pursuant to the
"safe harbour" provisions of such laws. These statements are subject to
certain assumptions, risks and uncertainties. Readers are cautioned not to
place undue reliance on such statements. Risk factors that may cause the
actual results, performance, achievements or developments of the Company to
differ materially from the results, performance, achievements or developments
expressed or implied by such forward-looking statements can be found in the
public documents filed by the Company from time to time with Canadian
securities regulatory authorities. In particular, actual results could differ
materially from those expressed in any forward-looking statements.
    Because the Company's business depends on the strength of the
telecommunications industry, its operating results will suffer if that
industry experiences an economic downturn. For a more complete list of risk
factors, please refer to Bridgewater's Annual Information Form dated March 28,
2008. The Company assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

For further information:

For further information: Investor Relations: Kim Butler, Chief Financial
Officer, Bridgewater Systems,, (613)
591-9104 extension 6023; Vanessa Beresford, The Equicom Group Inc.,, (416) 815-0700 extension 227; Media Relations:
David Sharpley, Senior Vice President, Marketing and Product Management,
Bridgewater Systems,, (613) 591-9104
extension 2121

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