09.14
Bridgewater announced a follow-on contract with Verizon Wireless for four
more Widespan systems with a total value of US$18.8 mln. The systems will
be rolled out through H1/2010, and revenues recognized ratably through
the 12 months thereafter
Recall that Bridgewater announced its initial order with Verizon in June 2008
for an initial three Widespan units plus a test system, totaling US$30 mln.
These were rolled out through late 2008 and 2009, with ~10% of revenues
recognized in 2008, 25% in 2009 and the balance in 2010 (~US$20 mln.).
In total, therefore, we expect Bridgewater to recognize over US$30 mln. of
revenues from Verizon in 2010 — roughly half of total 2010 revenue
estimate of C$72 mln. — providing good visibility to the year. Entering 2009
the company had ~60%-65% of revenues accounted for.
Bridgewater continues to pursue its other growth initiatives, looking to sign
up its first Tier 1 GSM customer in 2009, add to its policy management
customer base, and expand internationally. Expenses are expected to ramp
up through H2/2009 accordingly, to further drive growth into 2010.
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