Bridgewater Systems Corporation (BDWRF.PK)
Q1 2010 Earnings Call
April 29, 2010 8:30 AM ET
Ed Ogonek – President and CEO
Kim Butler – Chief Financial Officer
Kris Thompson – National Bank Financial
Thanos Moschopoulos – BMO Capital Markets
Scott Penner – TD Newcrest
Mike Abramsky – RBC Capital Markets
Deepak Chopra – Genuity Capital Markets
Paul Lechem – CIBC World Markets
Ron Shuttleworth – RES Enterprises
Bridgewater Systems Corporation Q1 2010 Earnings Call Transcript
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Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Bridgewater Systems 2010 First Quarter Conference Call. At this time, all participants are in a listen-only mode. Following the presentation we will conduct the question-and-answer session. Instructions will be provided at that time for you to queue up for questions. (Operator Instructions) As a reminder, this conference is being recorded today, Thursday, April 29, 2010.
The company’s remarks on this call including 2010 guidance, constitutes forward-looking information. Actual results could differ materially from conclusions, forecasts, or projections in the forward-looking information. Certain material factors or assumptions were applied in drawing such conclusions or making such forecasts or projections. Additional information about material factors that could cause actual results to differ materially from the conclusions, forecasts or projections in the forward-looking information and the material factors and assumptions previously mentioned, is contained in this quarter’s MD&A for the period ended March 31, 2010.
I will now turn the conference over to Mr. Ed Ogonek, President and Chief Executive Officer. Please go ahead, sir.
Thank you and good morning, everyone. With me today is Kim Butler, our CFO. Our Q1 results were released this morning and are available on the Investors section of our website where you can also find the financial statements and MD&A. I will start our discussion with a summary of the Q1 operational highlights. Kim will follow with a more detailed discussion of our financial results and updated guidance before I conclude with a few comments on recent market trends and our outlook.
We are encouraged by the start to 2010 as current customer engagements drove gains in revenue and earnings in the quarter and new business activity continued to increase globally, which is a positive indicator for future growth.
During Q1, we extended our policy market leadership with two key customer milestones. We went live with a new European HSPA customer who is part of a major global mobile operator group. This customer is using our Policy Controller product to meet new EU mobile data roaming legislation and help subscribers manage their mobile data usage.
We were also selected by Mobily, the largest provider of mobile broadband services in Saudi Arabia and part of the Etisalat group. Mobily is using our service and Policy Controller products to manage mobile data growth across their WiMAX and Wi-Fi networks with plans to integrate with their HSPA network in the future.
Our global policy market leadership was validated in a recent report published by Infonetics Research. While it is still early days, the mobile policy market is projected to grow from around $170 million in 2009 to about $1.2 billion in 2014. This represents a significant market opportunity for Bridgewater. RFP activity in this segment of the market is especially robust for us.
We are continuing our 4G momentum with five confirmed LTE trials with major operators in Asia-Pacific and North and South America using our new EPC 500 solution. The EPC 500 combines our Policy Controller and Home Subscriber Server in an integrated mobile control plane in a box system.
This morning we were pleased to receive notification from Informa Telecoms & Media that the Bridgewater EPC 500 has been selected for the shortlist in their LTE awards in the category of best enabling product and technology for LTE. This is a nice recognition for the potential benefit that this product can provide within our LTE network rollouts.
In addition, we successfully completed extensive LTE control plane interoperability testing at the Global MultiService Forum event at Vodafone Center for Test and Innovation in Dusseldorf and the China Mobile Research Institute Lab in Beijing. This interoperability is a key success factor for future LTE deployments.
We unveiled new solutions that extend the value of our products in optimizing 3G networks and alleviating congestion, including RAN Congestion Solutions, which combine our Policy Controller product with real-time sale site congestion information and subscriber entitlements to deliver enhanced services.
And our Mobile Data Offload Solutions, which ensures secure and seamless access for subscribers as they are transferred between 3G networks, Wi-Fi, femtocells or 4G networks. These Data Offload Solutions are being implemented by four Tier 1 operators in Europe, North America and Asia-Pacific.
And finally, we are extending our channels to market through global reseller arrangements with three major network equipment vendors and are in active customer engagements with each of these partners. In Q1 we added four new regional resellers in the APAC and EMEA regions. These relationships are important as we continue to expand globally and we expect to announce new customer wins through these relationships in the coming quarters.
Overall we continue to experience a high level of new business activity, reflecting the value of our solutions and meeting our customer’s accelerated mobile data services growth.
In the first quarter, we saw significant increase in RFP activity. We responded to 75% more RFPs in Q1 2010 than all of 2009 and 2009 was our highest RFP year-to-date. While we remain cautious about the timing from RFP to deployment and how to forecast these potential opportunities, this is certainly an encouraging trend for our business.