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Home > News Room > Press Releases > 2002 > 10/22/2002
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  OPENWAVE REPORTS RESULTS FOR FIRST QUARTER
FISCAL 2003
  

  REDWOOD CITY, Calif. - October 22, 2002 -- Openwave Systems Inc. (Nasdaq: OPWV), the leading independent provider of open software products and services for the mobile communications industry, today announced that revenues for the first fiscal quarter ended September 30, 2002 were $71.2 million as compared to $70.1 million in the fourth fiscal quarter ended June 30, 2002.

Pro forma net loss for the first fiscal quarter of 2003 was $29.9 million, or $0.17 per basic share, compared to a pro forma net loss of $33.2 million, or $0.19 per basic share, for the June 2002 quarter. Based on Generally Accepted Accounting Principles (GAAP), net loss for the first fiscal quarter was $138.5 million, or $0.79 per basic share1, compared to a net loss of $474.8 million, or $2.73 per basic share, for the June 2002 quarter. The per share numbers are based on 176.2 and 174.2 million weighted-average basic and diluted shares outstanding for the September and June 2002 quarters, respectively.

Net cash used in continuing operations during the fiscal quarter ended September 30, 2002 was $17.4 million, excluding $2.3 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 $20.8 million, with $15.7 million of this amount tied to the acquisition of SignalSoft Corporation and Java vending machine technology from Ellipsus Systems, Inc. Excluding $22.9 million set aside as restricted cash, the Company had cash, cash equivalents, short-term and long-term investments of $253.7 million as of September 30, 2002.

During the September 2002 quarter, the Company recorded approximately $83.3 million of charges relating to the restructuring announced in the quarter. Further, the Company recorded $21.8 million in non-cash charges for the impairment of goodwill relating to the SignalSoft and Ellipsus acquisitions. These amounts are excluded from the pro forma net loss reported above.

"Openwave delivered a solid quarter," said Don Listwin, president and CEO of Openwave. "Operators worldwide are re-engaging around mobile data," he added.

Second 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 December 31, 2002 is that revenues will be $65 million with a potential variability of plus or minus 10 percent, gross profit will range between 68 and 71 percent, and pro forma net loss per share will range between $0.14 and $0.21 per share.

For the quarter ending December 31, 2002, management expects net cash used in continuing operations to be approximately $17 to $22 million and cash used to finance restructuring, financing and investing activities to be $12 to $17 million. Excluding $22.9 million set aside as restricted cash, management expects to have cash, cash equivalents, short-term and long-term investments of $215 to $225 million as of December 31, 2002.

1The $8.6 million amortization and impairment of goodwill and other intangible assets included in the $138.5 million GAAP net loss includes $7.3 million related to goodwill recorded in connection with the Company's acquisition of SignalSoft. This impairment was recorded in compliance with the requirements of Statement of Financial Accounting Standards (SFAS) 142, which was adopted by the Company on July 1, 2002. The Securities and Exchange Commission (SEC) has asked registrants to pre-clear any action that would impair goodwill in the same quarter the goodwill was acquired. Management intends to comply with the SEC's request prior to the filing of the Company's September 30, 2002 Form 10-Q. Although management believes that it has applied the provisions of SFAS 142 correctly, should the SEC disagree, the goodwill impairment charge recorded in the Company's Form 10-Q could be decreased by as much as $7.3 million from the charge reflected in this press release, resulting in a decrease in the GAAP net loss by the same amount, or $0.04 per share.

Conference Call Information
Openwave has scheduled a conference call for 5:00 pm EDT today to discuss its financial 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 888-276-9998 (domestic U.S.), 612-332-0523 (International). A live webcast of the call will also be available on the Quarterly Earnings section of Openwave's website at http://investor.Openwave.com/medialist.cfm. The webcast replay will be available for three weeks following the call. A replay of the conference call will be available for 72 hours beginning at 5:30 p.m. PDT on October 22 by calling 800-475-6701 (domestic U.S.) and 320-365-3844 (international), using reservation number: 654747.

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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

Thomson Financial
Bonnie McBride
415-732-6246
Bonnie.mcbride@tfn.com

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

  



 
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