Bridgewater Systems named a familiar face to the CEO's chair on Wednesday as it looks forward to a profitable year after enduring the ups and downs of the tech slump.

The seven-year-old company has named Ed Ogonek as its new president and CEO.

Ogonek's last chief executive position was as president and CEO of Akara Corp. He oversaw the acquisition of the Ottawa firm by Ciena Corp. last August for US$45 million.

After the acquisition, he served as senior vice president and general manager of Ciena's metro and enterprise solutions operation before deciding to move on to a new challenge.

He replaces Derek Smyth, who left Bridgewater in January for personal reasons. Smyth was named CEO in March 2002.

Bridgewater, one of many startups that boasts entrepreneur Terry Matthews as a key investor and chairman of the board, develops telecom software. Its products help service providers build and manage user accounts and network services. Wireless is a key target market for its products, as well as Wi-Fi and broadband services such as DSL and cable.

Not only has the company survived the telecom slump, it is still running on a second-round of financing worth $30 million secured in March 2000.

Ogonek credits the company's resiliency to the flexibility of both its business model and its technology.

"There aren't a lot of companies that I've seen or talked to that have made a financing round last four years and become profitable," he said.

Back in the heady days of the tech boom when Bridgewater secured that $30 million in financing, the company had increased its revenues from $2 million in 1999 to $8 million in the first nine months of 2000.

Ogonek declined to offer up specific numbers for the present, though he acknowledged that revenues have increased from the levels of 2000. For 2004, Bridgewater expects to be profitable. The company still has cash in the bank and more than 20 customers, including big players Verizon Wireless and Bell Mobility.

"I think we're on solid ground," he said, adding that there is no plan at this time to pursue a third round of financing.

At this point, the focus is on building revenues and profits. Ogonek said it's too soon to say what the best exit strategy may be for the company's investors, be it an IPO, a merger or an acquisition.

The company has 65 staff, mostly in Ottawa. In the second half of the year, Ogonek plans to hire more sales, marketing and business development staff.