Mobile Personalization

Financial results have been announced by Bridgewater Systems (News - Alert), a provider of mobile personalization services.

The results cover the three and six months ended June 30, 2010. Highlights included increases in revenue, gross margin and net earnings.“Our investments to expand global sales, service and partnerships are aimed at securing new customers and capitalizing on the growing demand for our solutions to manage rapid mobile data growth, said Ed Ogonek, CEO of Bridgewater Systems, in a statement. “We are particularly pleased with our progress with Tier 1 partners.”


The company’s financial highlights included revenue results of $22.7 million, an increase of 41 percent compared with the same period in 2009. Product revenue was $17.1 million, a 47 percent increase from 2009. When measuring year-to-date, revenues were 56 percent higher at $47.2 million.Gross margin in this time period was also a strong $15.0 million, versus $12.1 million in 2009. This jump is a reflection of the increase in direct product costs associated with the delivery of integrated systems, investments in operations support infrastructure and increased global professional services engagements. With such increases came an increase in total operating expenses of $10.7 million compared with $8.2 million. This increase reflects higher research, development, sales and marketing investments to support the company’s growth.

This growth has also been seen in net earnings as before tax numbers showed an increase of 17 percent to $4.8 million, compared to $4.1 million in 2009. Net earnings for the first half of the year increased to $10.5 million, compared with $6.9 million in 2009 for the same period.Along with strong numbers, Bridgewater Systems has been busy expanding its global presence and strengthening partnerships.

The company opened a new India Center of Excellence designed to provide technology development sales, professional services and support services. In addition, Bridgewater Systems also added 17 new customers, including 11 in the APAC and EMEA regions.Bridgewater also expanded its relationship with Cisco (News - Alert) by securing a position as a Cisco Preferred Developer for the mobile packet core for 3G and 4G networks.

The company has successfully completed extensive interoperability testing with Cisco and announced the availability of the Bridgewater Policy Controller and Home Subscriber Server on the Cisco Unified Computing System. The outlook for the coming months and quarter is very strong.

Bridgewater officials said the company is expecting to reach revenues of $85 to $94 million; reach net earnings before tax of $14 to $17 million; and enjoy net earnings after tax of $10 to $12 million.The company is counting on high revenue visibility as a result of significant contracts with Tier 1 customers, a large installed customer base, long-term industry trends of growth in mobile data and applications and a continued evolution of the business model to deliver products and services that will address higher transaction capacity needs. 


In related news, Bridgewater Systems announced this month that the Bridgewater Policy Controller and Home Subscriber Server will now be available on the Cisco Unified Computing System.