Openwave Reports Third Quarter Fiscal 2011 Financial Results

Openwave Systems Inc. (Nasdaq: OPWV), a global software innovator delivering context-aware mediation and messaging solutions, today announced that revenues for the third fiscal quarter ended March 31, 2011 were $38.9 million, compared with $39.9 million in the prior quarter ended December 31, 2010 and $40.1 million in the March quarter in the preceding fiscal year. Bookings for the third quarter of fiscal 2011 were $48.1 million. The company ended the quarter with $101.4 million in cash and investments.

“Our third quarter’s bookings and backlog growth show that our platform-based mediation products are gaining momentum. We are working to maximize our revenue opportunity as carrier customers recognize the need to reduce network congestion and implement our video optimization and price plan innovation products,” said Ken Denman, CEO of Openwave. “On the OEM front, our engineers are on track to launch our Media Optimizer product on the Juniper operating system in the summer. Lastly, we continue to explore monetization opportunities for our IP portfolio.”

On a GAAP basis, net loss for the third fiscal quarter ended March 31, 2011 was $10.8 million or $0.13 per share, compared with a net loss of $4.5 million, or $0.05 per share, in the prior quarter and net loss of $4.2 million or $0.05 per share, in the March quarter in the preceding year. Restructuring costs in the quarter were $2.2 million.

On a non-GAAP basis, net loss for the third fiscal quarter ended March 31, 2011 was $6.5 million or $0.08 per share, compared with a net loss of $2.7 million or $0.03 per share, in the prior quarter and a net loss of $2.0 million, or $0.02 per share, in the March quarter in the preceding year. Non-GAAP net loss excludes restructuring, impairments on investments, amortization of intangibles and stock-based compensation, amounts associated with certain unusual events, discontinued operations, certain losses on investments and the tax impact of these items.
A reconciliation between net income (loss) and net income (loss) per share on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Download the financials (PDF)

Non-GAAP Measure
The company's stated results include the non-GAAP measures: non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP measures exclude certain items that generally are non-recurring events or are non-cash items that many other companies exclude, in order to compare Openwave with other companies, such as stock-based compensation and amortization of intangibles. These non-GAAP measures also exclude items which management does not consider in evaluating Openwave’s on-going business, such as restructuring costs, impairments on investments, and discontinued operations. Openwave considers non-GAAP net income (loss) to be an important measure because it provides a useful measure of the operational performance of Openwave and is used by Openwave's management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. These non-GAAP measures are presented for supplemental informational purposes only for understanding Openwave's operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. eastern daylight time today to discuss its financial results for its third quarter ended March 31, 2011. Interested parties may access the conference call over the Internet through Openwave’s website at www.openwave.com or by telephone at (877) 941-2321 or (480) 629-9714 (international). A replay of the conference call will be available for two weeks beginning at approximately 8:00 p.m. eastern daylight time today by calling 800-406-7325. The replay can be accessed internationally by calling 303-590-3030. Reservation number: 4432527#.
A live webcast of the call, together with supplemental financial information, will also be available on the Earnings & Metrics section of Openwave’s website at http://investor.Openwave.com. A replay will be available on the website for at least three months.