Bridgewater Systems (TSX: BWC), the mobile personalization company, today announced its financial results for the three and nine months ended September 30, 2009. All amounts are stated in Canadian dollars unless otherwise noted.
"The Company delivered strong financial performance in the third quarter, highlighted by significant revenue and earnings growth over the prior year," said Ed Ogonek, CEO of Bridgewater Systems. "In addition to continued success in our core markets, we made important progress in the third quarter with our strategy to expand into the 4G market. We introduced a comprehensive product suite for the LTE market and built on our early leadership with WiMAX operators.
"Supported by a strong financial position, high revenue visibility, and our new business pipeline, we are increasing investments in growth initiatives in the coming quarters," added Mr. Ogonek. "These investments are aimed at building our operations support infrastructure, as well as accelerating our expansion in certain geographic markets and continuing our 4G product development. We believe these investments position Bridgewater to capitalize on the substantial growth in next-generation mobile data services."
Based on its year-to-date performance, Bridgewater increased its annual guidance to:
<< - Revenues of $62 to $64 million - Net earnings of $9.5 to $10.0 million. >>
Factors supporting Bridgewater's annual outlook include: high revenue visibility due to significant multi-year contracts with Tier 1 customers; a large installed customer base in existing and emerging markets; long-term industry trends, particularly the growth in mobile data services and applications.
The complete financial statements and management's discussion and analysis for the three and nine months ended September 30, 2009 can be found at www.bridgewatersystems.com or at www.sedar.com.
A conference call and webcast will be held today, Thursday, November 5, 2009, at 8:30 am EDT to discuss this announcement. The telephone numbers to access the call are 416-644-3432 or 1-877-974-0446. To access the live webcast, please visit www.bridgewatersystems.com or www.newswire.ca. Participants will require Windows Media Player(TM) to listen to the webcast.
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 140 leading service providers including America Movil, Bell Canada, Clearwire, Cox, Hutchison Telecom, Iusacell, Scartel, SmarTone-Vodafone, Sprint, Tata Teleservices, Tatung, Telmex, Telstra, and Verizon Wireless use Bridgewater's solutions to rapidly deliver innovative mobile services. For more information, visit us at www.bridgewatersystems.com.
Bridgewater, Bridgewater Systems, the Bridgewater Systems logo, WideSpan, Smart Caps, myPolicy, 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 with Canadian securities regulatory authorities. In particular, actual results could differ materially from those expressed in any forward-looking statements. For a list of risk factors, please refer to Bridgewater's Annual Information Form dated March 31, 2009. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
<<
BRIDGEWATER SYSTEMS CORPORATION
Consolidated Statements of Earnings and
Comprehensive Earnings
(expressed in Canadian dollars)
(unaudited)
-------------------------------------------------------------------------
Three months ended Nine months ended
--------------------------- ---------------------------
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
------------- -------------
Revenue
Product $ 11,550,556 $ 5,963,509 $ 33,967,118 $ 19,667,267
Service and
support 4,218,772 4,330,185 11,979,795 10,987,453
-------------------------------------------------------------------------
15,769,328 10,293,694 45,946,913 30,654,720
Cost of sales 5,636,789 2,555,297 13,043,502 6,609,576
-------------------------------------------------------------------------
Gross margin 10,132,539 7,738,397 32,903,411 24,045,144
-------------------------------------------------------------------------
Expenses
Sales and
marketing 3,408,637 3,329,261 9,623,026 9,825,762
Research and
development 3,863,831 3,215,931 11,045,295 11,599,745
General and
administration 1,100,750 920,117 4,204,437 2,867,302
Bad debt
(recovery) expense - (9,854) (263,897) 57,612
Stock-based
compensation 100,598 72,050 271,086 168,818
-------------------------------------------------------------------------
8,473,816 7,527,505 24,879,947 24,519,239
-------------------------------------------------------------------------
Earnings (loss)
before undernoted
items 1,658,723 210,892 8,023,464 (474,095)
Foreign exchange
(loss) gain (225,009) 76,922 (130,401) 627,553
Interest and
other income 74,095 275,595 472,989 987,097
-------------------------------------------------------------------------
Earnings before
income taxes 1,507,809 563,409 8,366,052 1,140,555
Future income tax
recovery (expense) 143,000 (80,000) 313,000 (80,000)
-------------------------------------------------------------------------
NET EARNINGS AND
COMPREHENSIVE
EARNINGS $ 1,650,809 $ 483,409 $ 8,679,052 $ 1,060,555
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings
per share -
basic $ 0.07 $ 0.02 $ 0.36 $ 0.05
Net earnings
per share -
diluted 0.07 0.02 0.35 0.04
Weighted average
number of shares
outstanding -
basic 24,359,491 22,758,098 23,940,792 22,546,214
Weighted average
number of shares
outstanding -
diluted 25,237,721 24,208,862 24,909,273 24,216,263
BRIDGEWATER SYSTEMS CORPORATION
Consolidated Balance Sheets
(expressed in Canadian dollars)
(unaudited)
-------------------------------------------------------------------------
September 30, December 31,
2009 2008
-------------- --------------
--------------
CURRENT ASSETS
Cash and cash equivalents $ 43,326,794 $ 50,363,771
Short-term investments 18,166,784 -
Accounts receivable 16,552,336 13,423,994
Unbilled receivables 8,336,658 968,363
Deferred cost of sales 8,334,939 3,518,085
Prepaid expenses and other assets 5,864,554 1,735,267
Future income tax asset 2,567,000 2,557,000
-------------------------------------------------------------------------
103,149,065 72,566,480
DEFERRED COST OF SALES - 5,525,354
FUTURE INCOME TAX ASSET 6,066,000 5,763,000
CAPITAL ASSETS 4,124,488 3,351,911
-------------------------------------------------------------------------
$ 113,339,553 $ 87,206,745
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CURRENT LIABILITIES
Accounts payable and
accrued liabilities $ 6,493,218 $ 7,305,923
Deferred revenue 42,120,710 24,013,113
-------------------------------------------------------------------------
48,613,928 31,319,036
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital 69,596,430 68,444,332
Contributed surplus 838,006 834,041
Deficit (5,708,811) (13,390,664)
-------------------------------------------------------------------------
64,725,625 55,887,709
-------------------------------------------------------------------------
$ 113,339,553 $ 87,206,745
-------------------------------------------------------------------------
-------------------------------------------------------------------------
BRIDGEWATER SYSTEMS CORPORATION
Consolidated Statements of Cash Flows
(expressed in Canadian dollars)
(unaudited)
-------------------------------------------------------------------------
Three months ended Nine months ended
--------------------------- ---------------------------
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- ------------- ------------- -------------
------------- -------------
NET (OUTFLOW)
INFLOW OF CASH
RELATED TO THE
FOLLOWING
ACTIVITIES:
OPERATING
Net earnings $ 1,650,809 $ 483,409 $ 8,679,052 $ 1,060,555
Items not
affecting
cash
Bad debt
expense - - 223,838 67,466
Stock-based
compensation 100,598 72,050 271,086 168,818
Foreign
exchange loss
(gain) on
cash held in
foreign
currency 1,541,372 (311,360) 3,192,622 (322,264)
Future income
tax (recovery)
expense (143,000) 80,000 (313,000) 80,000
Amortization of
capital assets 419,057 385,226 1,012,178 997,811
-------------------------------------------------------------------------
3,568,836 709,325 13,065,776 2,052,386
Changes in
non-cash
operating
working
capital items 2,833,209 (1,654,967) 2,802,205 (1,905,827)
-------------------------------------------------------------------------
6,402,045 (945,642) 15,867,981 146,559
-------------------------------------------------------------------------
INVESTING
Repayment of
note receivable - - - 10,000,000
Purchase of
short-term
investments (18,166,784) - (18,166,784) -
Purchases of
capital assets (474,191) (90,516) (1,433,330) (995,842)
-------------------------------------------------------------------------
(18,640,975) (90,516) (19,600,114) 9,004,158
-------------------------------------------------------------------------
FINANCING
Proceeds from
issuance of
common shares 204,124 363,179 2,374,927 932,534
Repurchase of
shares under
normal course
issuer bid (698,807) - (2,487,149) -
Share issuance
costs - - - (66,558)
-------------------------------------------------------------------------
(494,683) 363,179 (112,222) 865,976
-------------------------------------------------------------------------
Foreign exchange
(loss) gain on
cash held in
foreign currency (1,541,372) 311,360 (3,192,622) 322,264
-------------------------------------------------------------------------
NET CASH (OUTFLOW)
INFLOW (14,274,985) (361,619) (7,036,977) 10,338,957
CASH AND CASH
EQUIVALENTS,
BEGINNING
OF PERIOD 57,601,779 39,271,815 50,363,771 28,571,239
-------------------------------------------------------------------------
CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 43,326,794 $ 38,910,196 $ 43,326,794 $ 38,910,196
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary
information:
Cash on hand and
bank balances $ 12,514,071 $ 11,485,740 $ 12,514,071 $ 11,485,740
Cash equivalents 30,812,723 27,424,456 30,812,723 27,424,456
-------------------------------------------------------------------------
Total cash
and cash
equivalents $ 43,326,794 $ 38,910,196 $ 43,326,794 $ 38,910,196
--------------------------------------------- ---------------------------
--------------------------------------------- ---------------------------
Interest
received $ 74,095 $ 275,595 $ 469,596 $ 987,097
BRIDGEWATER SYSTEMS CORPORATION
Consolidated Statements of Shareholders' Equity
(expressed in Canadian dollars)
(unaudited)
-------------------------------------------------------------------------
Common Shares Contributed
Number Amount Surplus
------ ------ -------
-------------------------------------------------------------------------
Three months ended
September 30, 2009
-------------------
Balance at June 30, 2009 24,361,445 $ 69,732,077 $ 762,411
-------------------------------------------------------------------------
Stock-based compensation - - 100,598
Repurchase of shares under
normal course issuer bid (128,345) (364,774)
Exercise of stock options 96,895 229,127 (25,003)
Net earnings - - -
-------------------------------------------------------------------------
Balance at September 30, 2009 24,329,995 $ 69,596,430 $ 838,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nine months ended
September 30, 2009
-------------------
Balance at December 31, 2008 22,969,701 $ 68,444,332 $ 834,041
-------------------------------------------------------------------------
Stock-based compensation - - 271,086
Repurchase of shares under
normal course issuer bid (528,485) (1,489,950) -
Exercise of stock options 1,888,779 2,642,048 (267,121)
Net earnings - - -
-------------------------------------------------------------------------
Balance at September 30, 2009 24,329,995 $ 69,596,430 $ 838,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders'
Deficit Equity
------- ------
-----------------------------------------------------------
Three months ended
September 30, 2009
-------------------
Balance at June 30, 2009 $ (7,025,587) $ 63,468,901
-----------------------------------------------------------
Stock-based compensation - 100,598
Repurchase of shares under
normal course issuer bid (334,033) (698,807)
Exercise of stock options - 204,124
Net earnings 1,650,809 1,650,809
-----------------------------------------------------------
Balance at September 30, 2009 $ (5,708,811) $ 64,725,625
-----------------------------------------------------------
-----------------------------------------------------------
Nine months ended
September 30, 2009
-------------------
Balance at December 31, 2008 $(13,390,664) $ 55,887,709
-----------------------------------------------------------
Stock-based compensation - 271,086
Repurchase of shares under
normal course issuer bid (997,199) (2,487,149)
Exercise of stock options - 2,374,927
Net earnings 8,679,052 8,679,052
-----------------------------------------------------------
Balance at September 30, 2009 $ (5,708,811) $ 64,725,625
-----------------------------------------------------------
-----------------------------------------------------------
>>
