Ottawa-based Bridgewater Systems Corp. is looking to go public on the Toronto Stock Exchange.

The network policy management software maker announced has filed a preliminary prospectus with securities regulators for an initial public offering of its common shares. The company has applied for a listing under the symbol "BWC."

Bridgewater said it would use the proceeds from the offering to to expand its consulting and design services capability, to fund new products and services development and for sales and marketing activities.

The company, which says it has been profitable for the last 14 quarters, has seen revenues grow by a compound annual growth rate of 43.4 per cent since fiscal 2004.

Sales for the nine months ended Sept. 30, 2007 were US$27.4 million, up from $21.4 million in the same period a year earlier. However, profits for the same period fell year-over-year to $874,000, or four cents per diluted share, from $1.6 million or eight cents per diluted share. The company's cash and cash equivalents were $16.8 million as of Sept. 30.

Risk factors for potential investors include the evolving nature of the network management market; its use of open-source, third-party-developed software components; and its dependence on a single market for revenues, that of the code division multiple access (CDMA) wireless network used by service providers in North America who offer wireless data services.

The offering is led by CIBC World Markets Inc. and Genuity Capital Markets and includes the involvement of GMP Securities L.P., RBC Dominion Securities Inc. and TD Securities Inc.

Bridgewater's preliminary prospectus did not list the pricing and scope of the IPO.