Thursday, August 18, 2011
Amdocs completed the acquisition of Bridgewater Systems (see "Amdocs Completes Acquisition of Bridgewater Systems, Enabling Service Providers to Redefine the Data Experience" - here).
BWS web site already reflects that - Bridgewater is now "A Division of Amdocs" (here).
"Total revenue for Q2 2011 was $14.6 million, compared with $22.7 million for Q2 2010. Product revenue for Q2 2011 was $9.3 million, or 63% of total revenue, compared to $17.1 million, or 75% of total revenue, for Q2 2010. The year-over-year decrease mainly reflects two expected and previously disclosed changes: the transition in the Company's business model with its largest customer [see - "Bridgewater Growth - It is all about Verizon"- here] and the expiration of the Alcatel-Lucent Source Code License Agreement in Q4 2010 [see "Bridgewater - Will the Juniper Agreement Replace Alcatel-Lucent Revenues?" - here].
On March, the company provided full-year guidance for 2011 (here), expecting revenues of $88.0 to $100.0M. On May, it was reduced to $77.0 to $87.0M (here). The actual revenues for the first half are $33.7M.
With these results, the price Amdocs is paying for BWS is still (although less then it was during the announcement) attractive compared to the 2010 Tekelec-Camiant deal (see "Camiant Information Exposed (and Compared to Bridgewater" - here).
Amdocs is paying $139M (net of Bridgewater's cash as of June 30, 2011). With estimated ~$70M revenues for 2011, this is a price/sales ratio of ~2, compared to 4.6-5 that Camiant got on its 2010 revenues.