WORLDWIDE | INVESTORS | CAREERS | SUPPORT | CONTACT US
Openwave Systems, Inc.
News Room
 
Home > News Room > Press Releases > 2001 > 10/29/2001
  Print this Page Email this Page  
  OPENWAVE REPORTS FIRST QUARTER FISCAL 2002 RESULTS
  

  REDWOOD CITY, Calif. - October 29, 2001 -- Openwave Systems Inc. (Nasdaq: OPWV), the worldwide leader of open, IP-based communications infrastructure software and applications, today announced that revenues for the first fiscal quarter ended September 30, 2001 were $117.2 million as compared to $80.8 million in the first quarter of fiscal 2000.

Pro forma loss for the first fiscal quarter was $5.9 million, or $0.03 per basic and diluted share, excluding merger and acquisition-related charges and stock-based compensation compared to a pro forma loss of $4.9 million or $0.03 per basic and diluted share for the first fiscal quarter of 2000. The pro forma loss per share is based on 171.4 million and 162.0 million weighted average basic shares outstanding for the first fiscal quarters of 2001 and 2000 respectively.

The Company used $5.1 million in cash from operations for the fiscal quarter. As of September 30, 2001, the Company had cash, cash equivalents, short-term and long-term investments of $365.1 million, excluding $22.3 million set aside as restricted cash, compared to $369.7 million of cash, cash equivalents, short-term and long-term investments as of the end of the June 2001 quarter, excluding $20.7 million in restricted cash. Total assets were $1.63 billion and stockholders’ equity was $1.49 billion as of September 30, 2001.

"Openwave is realigning our operations to navigate the unprecedented uncertainty of the telecommunications market," said Don Listwin, chairman, president and CEO. “With our leading technology, strong balance sheet and solid global customer base, Openwave is committed to improving profitability, extending market share and driving the growth of the mobile Internet."

Net loss for the first fiscal quarter including merger and acquisition-related charges and stock-based compensation was $170.5 million, or $0.99 per basic and diluted share, compared to a net loss of $168.0 million, or $1.04 per basic and diluted share for the first quarter in the prior fiscal year.

Total active mobile subscribers grew by 4.1 million to 25.7 million at the end of September 2001, up from 21.6 million at the end of June 2001. During the quarter, Verizon Wireless became the sixth wireless communications service provider to achieve critical mass by reporting over one million active mobile data subscribers using Openwave’s technology as of quarter end.

Openwave’s messaging business grew to 189.0 million licensed seats as of the end of September 2001, with activated seats reaching 124.9 million. Communications service providers that have licensed over one million seats grew to 40 in the September quarter from 37 at the end of June 2001.

Planned Restructuring

Management intends to realign the company’s operations to reduce operating expenses by approximately $20 million per quarter prospectively, with such cost reductions to begin in the December quarter and to continue in succeeding quarters until the targeted level of reductions has been achieved. Management anticipates a restructuring charge of approximately $35 million to $40 million to be recorded in the December 2001 quarter.

December Quarter 2001 Financial Outlook

The following statements are forward looking and actual results may differ materially due to factors noted below, among others.

Management's current outlook for the quarter ending December 31, 2001 is that revenues will be $100 million with a potential variability of plus or minus15 percent, gross profit will range between 83 and 85 percent, and that pro forma loss per share will range between $0.06 and $0.19 per share.

Openwave Systems Inc. has scheduled a conference call for 5:00 pm EST today to discuss the results for the first fiscal quarter. Interested parties may access the conference call over the Internet through the Company’s web site at www.openwave.com or by telephone at 877-715-5318 (domestic U.S.), 973-872-3462 (International). A replay will be available for 48 hours following the conference call through the Company’s web site or by telephone at 877-519-4471 (domestic U.S.), 973-341-3080 (International), using reservation number: 2899960.

image 1 image 2 About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWV) is the worldwide leader of open IP-based communication infrastructure software and applications. Openwave is a global company headquartered in Redwood City, California. For more information, please visit www.openwave.com.

Cautionary Note Regarding Forward Looking Statement
 
This release contains forward-looking statements relating to expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to realize our strategic objectives by taking advantage of market opportunities in the Americas, Europe, the Middle East and Asia; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of our current, new and potential customers, suppliers and strategic partners; (c) risks associated with the success of the GSM Association’s Mobile Service Initiative; (d) risks associated with the development and licensing of software generally, including potential delays in software development and technical difficulties that may be encountered in the development or use of the Company's software; (e) the ability to manage the Company's growth; (f) the ability to continue to obtain qualified, experienced employees; (g) the ability to successfully partner with other companies; (h) the ability to acquire additional companies and technologies and integrate such acquisitions; (i) competition and technological changes and developments; (j) general risks of the Internet and wireless and wireline telecommunications sectors; and (k) the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2001. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave’s Web site at www.openwave.com. The Company assumes no obligation to update the forward-looking statements included in this document.


 
Openwave, the Openwave logo and Services OS are trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

Openwave Systems Inc.
Alan Black
Chief Financial Officer
+1 650 480 4888
alan.black@openwave.com

Openwave Systems Inc.
Mike Musson
Investor Relations
+1805 884 5352
mike.musson@openwave.com

Openwave Systems Inc.
Michele Landry
+1 650 480 4622
michele.landry@openwave.com

  



 
Search Press Releases

Search
 
 
 
 
Openwave Investors
Stock information, email alerts, SEC documents and investor news.  
About Our Customers
Openwave customers serve over half of all mobile subscribers 
Openwave Executives
Openwave's team of visionary executives and board members 
Company Overview
Openwave's history and mission  
Industry Events
Learn about Openwave's presence at industry events. 
 
 
TERMS AND CONDITIONS | PRIVACY POLICY | SITE MAPCopyright © 2000-2008 Openwave Systems Inc.