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Home > News Room > Press Releases > 2002 > 07/23/2002
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  OPENWAVE REPORTS RESULTS FOR FOURTH QUARTER AND FISCAL YEAR 2002
  

  REDWOOD CITY, Calif. - July 23, 2002 -- Openwave Systems Inc. (Nasdaq: OPWV), the worldwide leader of open, IP-based communications infrastructure software and applications, today announced that revenues for the fourth fiscal quarter ended June 30, 2002 were $70.1 million as compared to $145.9 million in the fourth quarter of fiscal year 2001.

Pro forma loss for the fourth fiscal quarter was $33.2 million, or $0.19 per basic share, excluding restructuring and other charges, losses on investments in equity securities, goodwill and other merger and acquisition-related charges and stock-based compensation, compared to a pro forma net income of $19.2 million, or $0.11 per fully diluted share, for the fourth fiscal quarter of 2001. Based on Generally Accepted Accounting Principles (GAAP), net loss for the fourth fiscal quarter was $474.8 million, or $2.73 per basic share, compared to a net loss of $142.2 million, or $0.84 per basic share, for the fourth quarter in the prior fiscal year. The per share numbers are based on 174.2 million weighted-average basic and diluted shares outstanding for the fourth fiscal quarter of 2002 for both the pro forma and GAAP-based numbers, and on 177.1 million weighted-average diluted shares and 168.8 million weighted-average basic shares outstanding for the fourth fiscal quarter of 2001 for the pro forma and GAAP-based numbers, respectively.

Revenues for the twelve months ended June 30, 2002 decreased 22.2% percent to $364.8 million as compared to the twelve months ended June 30, 2001.

Net cash used in continuing operations during the three-month period was $3.4 million, excluding $2.7 million of cash used for restructuring costs. Cash used for financing and investing activities (excluding transfers between cash, cash equivalents and short-term and long-term investments) was $13.4 million. Excluding $22.3 million set aside as restricted cash, the Company had cash, cash equivalents, short-term and long-term investments of $294.2 million as of June 30, 2002 compared to $313.7 million as of March 31, 2002.

During the quarter, the Company recorded $339.2 million in non-cash charges for the impairment of goodwill and other intangible assets related to certain acquisitions and for certain equity investments and market declines in the Company's investment portfolio. In addition, as part of the restructuring plan announced on October 29, 2001, management has recorded an additional $1.4 million in restructuring charges during the quarter, bringing the total restructuring and other costs for the fiscal year to $37.7 million. These amounts are excluded from the pro forma loss reported above.

"An unprecedented storm is raging in the telecommunications industry," said Don Listwin, President and CEO of Openwave. "Openwave is committed to managing through this difficult period to emerge as the leading provider of software infrastructure for data services."

Total active mobile subscribers served by Openwave's carrier customers increased to 40.0 million at the end of June 2002, up from 36.2 million at the end of March 2002. New active mobile subscribers in the quarter were 3.8 million. During the quarter, the number of carriers with more than one million active mobile subscribers using Openwave's software increased from 11 to 12, and the Company now has a carrier customer with over 10 million active subscribers.

Openwave's messaging business added 4.7 million new active seats for a total of 94.2 million activated seats as of the end of June 2002. The market leading scalability of Openwave's IP messaging platform is demonstrated by the 36 communications service providers that have licensed over one million seats from Openwave as of the end of June 2002, and the 18 communications service provider customers that are each running active mail services with over one million subscribers.

First Quarter Fiscal 2003 Business Outlook
Openwave's Business Outlook set forth below will be available on the Company's Investor Relations Web site throughout the current quarter. Notwithstanding changes in our outlook that may occur in the interim, we do not expect to update the Business Outlook until the release of our next quarterly earnings announcement; however, Openwave reserves the right to update the full Business Outlook or any portion thereof at any time for any reason. 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 September 30, 2002 is that revenues will be $68 million with a potential variability of plus or minus 10 percent, gross profit will range between 67 and 70 percent, and pro forma loss per share will range between $0.18 and $0.28 per share.

For the quarter ending September 30, 2002, management expects net cash used in continuing operations to be approximately $25 to $30 million, cash used to finance the acquisition of SignalSoft to be $20 to $25 million and cash used for other restructuring, financing and investing activities to be $8 to $13 million. Excluding $22.3 million set aside as restricted cash, management expects to have cash, cash equivalents, short-term and long-term investments of $226 to $241 million as of September 30, 2002.

Conference Call Information
Openwave has scheduled a conference call for 5:00 pm EST today to discuss its financial results for the fourth 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 888-423-3281 (domestic U.S.), 612-288-0318 (International). A replay will be available for 72 hours following the conference call through the Company's Web site or by telephone at 800-475-6701 (domestic U.S.), 320-365-3844 (International), using reservation number: 645094.

image 1 image 2 image 3 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 Statements
 
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 including the Middle East, and the Asia Pacific region; (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 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; (d) the ability to manage the Company's growth; (e) the ability to continue to obtain qualified, experienced employees; (f) the ability to successfully partner with other companies; (g) the ability to acquire additional companies and technologies and integrate such acquisitions; (h) competition and technological changes and developments; (i) general risks of the Internet and wireless and wireline telecommunications sectors including, without limitation, the current depressed economic and capital spending environment in such sectors; and (j) 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, the Company’s quarterly reports on Form 10 -Q for the quarters ended September 30, 2001, December 31, 2001, March 31, 2002 and subsequently filed reports. 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
+1 805 884 5352
mike.musson@openwave.com

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

  



 
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