Bridgewater Slips on Stock Market Debut

Policy management specialist Bridgewater Systems Corp. (Toronto: BWC) has completed its IPO on the Toronto Stock Exchange, but has seen its share price slip on its first day of trading. (See Bridgewater Joins TSX.)

The firm sold 6,363,636 shares at C$5.50 (US$5.41) apiece, raising about C$20 million (US$19.7 million) for itself and C$15 million (US$14.8 million) for some of its selling shareholders.

But its stock opened trading this morning at C$5.40 and then slipped C$0.20, nearly 4 percent, to C$5.20.

Ottowa-based Bridgewater, which has more than 200 staff, is one of a number of specialist vendors in the increasingly important policy management sector. (See Bridgewater Unveils Products , Policy Control Heats Up, Broadband Policy Servers, and Customer Focus Through Identity Management.)

It has 92 carrier wireline and wireless customers, though it's generated most of its business from mobile operators, including Verizon Wireless , Sprint Corp. (NYSE: S), MetroPCS Inc. (NYSE: PCS), Leap Wireless International Inc. (Nasdaq: LEAP), and SmarTone Telecommunications Holdings Ltd. (Hong Kong: 0315). (See SmarTone Uses Bridgewater and Verizon Uses Bridgewater.)

It sells directly and indirectly via partners, including Alcatel-Lucent (NYSE: ALU), Alvarion Technologies Ltd. (Nasdaq: ALVR), Motorola Inc. (NYSE: MOT), Nortel Networks Ltd. , and Starent Networks Corp. (Nasdaq: STAR), and has been profitable for the past 14 quarters. (See Bridgewater in Nortel Trials and Alcatel Launches Service Manager.)

In the 12 months to the end of September, Bridgewater generated revenues of C$37 million and net income of C$10 million, though that includes a tax rebate of C$7.5 million.

The company intends to use the money raised from the IPO to expand its professional services capabilities and sales and marketing teams, to develop new products, and possibly for "selective acquisitions."

— Ray Le Maistre, International News Editor, Light Reading