UPDATE 2-Bridgewater's strong Q4 profit, 2010 view boosts shares
* Q4 EPS C$0.10 vs est C$0.06
* Q4 rev C$20.7 mln vs est C$17.5 mln
* Sees 2010 revenue C$82 mln-C$92 mln vs est C$81.7 mln
* Sees 2010 net income C$13 mln-C$16 mln
* Looking at 3G, 4G, LTE for growth
* Shares up as much as 5 pct (Recasts, adds conference call details, analyst comment, updates share movement)
By Ashutosh Joshi
BANGALORE, Feb 26 (Reuters) - Canadian telecoms software firm Bridgewater Systems Corp BWC.TO posted a better-than-expected rise in quarterly results and forecast a strong 2010 on rising demand for its products, sending its share up 5 percent.
Bridgewater, which sells products to ease networks congestion, is looking at 3G and 4G to boost results and is also foraying into newer technologies like long-term evolution (LTE).
Bridgewater expects revenue in 2010 to rise about 23 percent to 38 percent -- better than market forecasts -- despite the expiry of a contract with Alcatel Lucent (ALUA.PA) this year.
"They have been very conservative with their guidance normally, so I would think they will be able to achieve those results," Toll Cross Securities analyst Manish Grigo told Reuters.
Fourth quarter net income rose to C$2.5 million, or 10 Canadian cents a share, from C$1.7 million, or 7 Canadian cents a share, a year ago. [ID:nWNAB2613]
The company added about nine customers in the quarter including a deal with MetroPCS Communications PCS.N to supply components for the low-cost wireless carrier's fourth-generation (4G) network. It added four customers in the Asia Pacific region, an area they been looking to expand in.
"Looking ahead, we expect revenue contribution from 3G and 4G networks to grow over time, as we expand out positions with these customers," Chief Financial Officer Kim Butler said on a conference call.
Bridgewater, along with few network equipment vendors, has signed up for five trials of its long-term evolution (LTE) technology in 2010, Chief Executive Ed Ogonek said on the call.
Mobile telecoms operators are set to invest billions in the LTE networks as data traffic in their current networks has exploded due to the use of mobile data cards and smartphones. [ID:nLDE61H1DM]
The situation is also set to spark demand not only for Bridgewater, but also for U.S.-based Tellabs TLAB.O.
Bridgewater shares, which have gained about 164 percent in the past year, were up about 3 percent at C$9.50 in Friday afternoon on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Savio D'Souza and Anne Pallivathuckal)
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