Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘North America’

Bridgewater bumps up revenue 41 per cent in Q2

Posted by sweens on July 29, 2010

Bridgewater Systems posted a 41-per-cent increase in second-quarter revenues Thursday, but one analyst cautions a pull-back by the company’s largest customer could create anxiety among investors.

The Ottawa-based software development firm reported revenues of $22.7 million, powered in large part by product sales, which increased 47 per cent to $17.1 million.

Earnings before income taxes were $4.8 million in the same period, an increase from the $4.1 million posted the year before.

The firm’s $47.2 million in revenues in the year to date is also 56 per cent higher than revenues in the first six months of fiscal 2009.

A conference call with analysts Thursday morning discussed the company’s wins in attracting new customers, particularly overseas, and the expansion of partnerships with existing customers such as Cisco and Verizon.

However, mitigating the rosy outlook and continued customer growth was analyst concern about Verizon’s shift away from purchasing Bridgewater software and hardware solutions as a bundle and instead focusing on just the software solutions instead, said Bank of Montreal analyst Thanos Moschopoulos.

“I don’t think it will impact Bridgewater all that much, but when your largest customer is looking to tweak the way business is doing with you it makes people nervous,” he said.

He added he doesn’t see much of an impact given “Verizon has very rapid traffic work on 3G network” and that mobile Internet demand is not expected to slow down any time soon.

The challenge for Bridgewater, he added, was to position itself for the LTE market in the coming years, but that will not begin to take a large share on the market for about 24 to 36 months, he said.

The company highlighted its growth in developing countries during the conference call.

“We have a focus on global expansion and emerging markets,” said Ed Ogonek, chief executive of Bridgewater, talking particularly about their work in India as the country begins its move from 3G to 4G spectrum options.

“We’ve built a technical servies and professional services capability to put some additional in-country and in-region capability,” he added.

“One of the fascinating things around the market is it’s rich with skillset and technical experience.”

The addition of 17 new customers, including 11 outside of North America, drew praise from analysts, although they also drew concern that the new partner business represented only seven per cent of revenues and it is not expected to increase substantially in the next few quarters.

Research notes from Kris Thompson, of NBF financial, said the new customers “should aid future revenue growth and customer diversification.”

He noted that management had continued to keep up its revenue guidance of $85 million to $94 million.

“We continue to expect new customer wins in Q2 2010 to help the company beat this range,” he stated.

Bridgewater further noted two existing customers represent 59 per cent of the firm’s revenue. Chief financial officer Kim Butler said “one can assume” Verizon was one those partners but could not separate the two into more exact numbers.

For future guidance, Mr. Ogonek said the company has been involved in Europe and other regions in implementing a system that can help consumers avoid “bill shock” by sending mobile alerts when the person is getting close to the limit of their browsing downloads.

With more carriers looking to implement these systems in the next year or two, Mr. Ogonek said the company is well-positioned for growth in the coming 24 months.

In the second quarter, gross margin was $15 million, or 66 per cent of revenue, compared with $12.1 million, or 75 per cent of revenue in Q2 2009.

Bridgewater stated this is due to a bump-up in direct-product costs due to bundling integrated systems together, as well as increasing the infrastructure of operations support.

Net earnings before income tax went up 17 per cent to $4.8 million, compared with $4.1 million in the second quarter of 2009.

After income tax, net earnings were $3.2 million, or $0.13 per fully diluted share, compared with $4.1 million ($0.17 per share) in Q2 2009. The decrease was due to a one-time income tax spending of $0.6 million and a non-cash future income tax expenditure of $0.9 million.

http://www.obj.ca/Technology/2010-07-29/article-1631057/UPDATE-2%3A-Bridgewater-bumps-up-revenue-41-per-cent-in-Q2/1

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RIM faces tough challenge to impress at annual symposium

Posted by sweens on April 29, 2010

The heat is on BlackBerry-maker Research In Motion as the company heads into its annual industry showcase of new products and services in what will perhaps be the most competitive year yet for smartphones.

The Waterloo, Ont.-based company opens a three-day annual showcase on Tuesday in Orlando, Fla., and it’s expected to update some devices, add new products and partnerships, and perhaps offer a few surprises.

There are rumours that RIM will announce an updated web browser, designed to compete with Apple’s popular iPhone, and perhaps even a new operating system.

“In the evolution of the company, this is going to be a very important year, for sure,” said Neeraj Monga, an analyst for Veritas Investment Research Corp.

“People are either going to give credit to the company that it can out-compete and out-innovate Apple, or they’re going to give up and say ‘BlackBerry had a great run, but it’s another one of those technology businesses that has matured and just cannot keep up with its innovative competitors.’”

Whether this year is literally such a sink-or-swim scenario for RIM is debatable, but it’s hard to deny the company is facing some of its fiercest competition yet.

In the past year, both the iPhone and Google’s Android smartphones have gained notable share in North America’s smartphone market, an area that was once clearly dominated by RIM’s BlackBerry products.

While RIM was able to add on its solid base within the business and government communities by adding consumer-friendly features to various BlackBerry models, RIM has been under plenty of scrutiny.

Critics say RIM has been slow to develop a new web browser for its devices that can compete with some of the more user-friendly designs on the market.

However, the highly competitive market is more complex than simply a new browser, as smartphone pioneer Palm learned last year when it unveiled a new browser design to critical raves.

Palm’s stock has fallen to multi-year lows, and recent reports have suggested that Palm has hired Goldman Sachs to help shop the company to potential buyers for about US$1.1 billion.

Despite the turbulence in smartphones, which usually include keys for text entry as well as phone calls, BlackBerrys remain the dominant smartphone in North America, and among the biggest sellers globally.

Broadpoint AmTech analyst Mark McKechnie said there are two ways to digest the company’s position in the market.

“They’re certainly showing tremendous growth outside of the U.S. as they bring smartphones to lower price points,” he said from Orlando, where he planned to attend the symposium.

“We need to see them bring the fight back here to the U.S. and regain their positioning at the high-end (or higher-priced devices).”

While most of RIM’s plans will not be unveiled until the conference gets underway, the company offered up its usual tease of product announcements ahead of the launch.

The highlights included a 3G version of its Pearl device and a BlackBerry Bold that works on CDMA network carriers.

Most of the most-anticipated announcements are expected when co-CEO Mike Lazaridis delivers a keynote address during the conference. The company’s stock price will likely show whether investors are impressed.

On Monday morning, RIM’s stock was down 80 cents to $69.78 on the Toronto Stock Exchange, off a 52-week high of 95 and low of $58.64.

In an interview ahead of the conference, co-CEO Jim Balsillie defended the company’s position on the market.

“Wind the clock back and I can give you 10 other companies that were put forward that were just overwhelmingly formidable for us to even consider competing against,” Balsillie said.

“There’s always somebody that somebody’s going to put out.”

By David Friend, The Canadian Press

http://www.obj.ca/Technology/2010-04-26/article-1039167/RIM-faces-tough-challenge-to-impress-at-annual-symposium/1

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Procom – Recognized by Branham 300 for Industry Leadership

Posted by sweens on April 1, 2010

 Branham Group published its annual Branham 300 List today and Procom was recognized as a leader in its industry for another consecutive year.  

On the list announced today, Procom was named 6 on the list of the Top 25 It Professional Services Companies and 22 on the list of the Top 250 Canadian Tech Companies, taking the number one spot amongst its competitors.

Published annually in Backbone Magazine and circulated in the National Post, the Branham 300 List recognizes Canada’s best performing Information Technology firms. The rankings, which are based on revenue growth, recognize Canadian IT firms for their strong performance and industry leadership. It is considered one of the premier industry performance metrics.

“Recognition by Branham is a significant honour” says Procom’s President & CEO Frank McCrea. “We believe that our commitment to integrity, flexibility and responsiveness has created a strong foundation upon which our company is built and it is this strong foundation that allows Procom to leverage its core competencies and experience continued growth.”

Procom – Procom Consultants Group is a leading IT Staffing & Project Solutions firm in North America and for 4 consecutive years has been named one of the 50 Best Managed Companies in Canada. Procom has 12 office locations, over 2800 IT Consultants and is responsible for the delivery of hundreds of IT projects annually. Procom offers its clients customized services in IT Staffing, Payroll Administration, and IT Project Solutions.

For more information visit: http://www.procom.ca or www.branham300.com

For additional information please contact:

Allison McCrea
Procom Consultants Group Ltd.
1-800-461-4878 ex 600
allisonm@procom.ca

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