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Home > News Room > Press Releases > 2003 > 10/28/2003
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  OPENWAVE REPORTS FIRST QUARTER FISCAL 2004 RESULTS
  

  REDWOOD CITY, Calif. - October 28, 2003 -- Openwave Systems Inc. (Nasdaq: OPWVD), the leading provider of open software products and services for the communications industry, today announced that revenues for its first fiscal quarter ended September 30, 2003 were $68.0 million, an increase from $66.5 million for the preceding quarter ended June 30, 2003. In addition to revenue, the Company delivered results at the high end of the range for management's outlook with respect to gross margins, total ending cash and investments, earnings per share, and EBITDA.

"We continue to execute on our plan toward profitability," said Don Listwin, president and CEO of Openwave. "Our optimism in the mobile data market is growing as operators worldwide are rolling out new services."

Openwave effected a 1 for 3 reverse stock split on October 21. Per share net loss on a pre- and post-split basis are as follows:

Pre-Split
Based on Generally Accepted Accounting Principles (GAAP), net loss for the first quarter ended September 30, 2003 was $14.0 million or $0.08 per basic share pre-split, compared to a net loss of $25.7 million or $0.14 per basic pre-split share for the preceding quarter.

Post-Split
Based on GAAP, net loss for the first quarter ended September 30, 2003 was $14.0 million or $0.23 per basic post-split share, compared to a net loss of $25.7 million or $0.43 per basic post-split share for the preceding quarter.

EBITDA loss, which consists of earnings before interest, taxes, depreciation, amortization and impairment of assets including deferred stock-based compensation expense, was $4.7 million. EBITDA loss included restructuring-related charges of $1.9 million. The Company considers EBITDA to be an important measure of performance because it reflects the resources available to fund the Company's operations, and it is an important metric often used by investors to evaluate the performance of a business.

As of September 30, 2003, the Company had cash, cash equivalents, short-term and long-term investments totaling $367.3 million, of which $29.9 million is set aside as restricted cash. The total cash includes $145.7 million of net proceeds that Openwave raised when it completed an issuance of convertible debt in September 2003. Net cash used for operating activities during the three months ended September 30, 2003 was $13.4 million, which includes $6.9 million of cash used for restructuring costs.

Second Quarter Fiscal 2004 Business Outlook
Management's current outlook for the quarter ending December 31, 2003 is that revenues will be within a range of $65 million plus or minus 10 percent, gross profit will be between 71 and 74 percent of revenues, net loss between $5 million and $15 million, GAAP net loss per share between $0.09 and $0.25 per share, and EBITDA between positive $3 million and negative $6 million. Management expects to have cash, cash equivalents, short-term and long-term investments, inclusive of restricted cash, of $345 to $355 million as of December 31, 2003.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. EDT today to discuss its financial results for its first quarter ended September 30, 2003. 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) 428-4480 or (651) 291-5254 (international). A replay of the conference call will be available for 72 hours beginning at 8:30 p.m. EDT on October 28 by calling 800-475-6701. The replay can be accessed internationally by calling 320 365-3844, reservation number: 700290.

A live webcast of the call, together with supplemental financial information, will also be available on the Quarterly Earnings section of Openwave's web site at for at least 12 months.

About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWVD) is the leading independent provider of open software products and services for the communications industry. Openwave's breadth of products, including mobile phone software, multimedia messaging software (MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. 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 (including without limitation those contained in the Business Outlook section and the quotations from management) 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 statement. Notwithstanding changes that may occur with respect to matters relating to the Business Outlook and other forward looking statements, Openwave does not expect to update such statements until the release of its next quarterly earnings announcement. Openwave, however, reserves the right to update such statements or any portion thereof at any time for any reason.

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 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 our software; (d) the effects of our restructurings and the ability to successfully support our operations; (e) the ability to recruit and retain qualified, experienced employees; (f) the willingness of communication service providers to invest and improve their data networks; (g) the ability to successfully partner with other companies; (h) the ability to acquire additional companies and technologies and integrate such acquisitions; (i) increased global competition; (j) technological changes and developments; (k) general risks of the Internet and wireless and wireline telecommunications sectors; and (l) 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, 2003, and any 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.

Download the financials here. (.pdf)
 
Openwave and the Openwave logo are trademarks and or registered 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.
Joshua Pace
Chief Accounting Officer
+1 650 480 4999
investor@openwave.com

  



 
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