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Home > News Room > Press Releases > 2004 > 07/28/2004
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  OPENWAVE REPORTS FOURTH QUARTER FISCAL 2004 RESULTS
  

  Achieves Positive Operating Income
 
REDWOOD CITY, Calif. - July 28, 2004 -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced that revenues for its fiscal fourth quarter ended June 30, 2004 were $76.8 million, an increase of $2.6 million or 3% from $74.2 million during the preceding quarter ended March 31, 2004, and an increase of $10.3 million or 15% from $66.5 million during the June quarter in the preceding year. Revenues for the twelve months ended June 30, 2004 were $291 million.

"Positive operating income was achieved for the first time," said Don Listwin, president and CEO of Openwave. "This is a major milestone for the company."

Net loss for the fiscal fourth quarter ended June 30, 2004 was $737,000, or $0.01 per basic and diluted share, compared to a net loss of $5.7 million, or $0.09 per basic and diluted share, for the preceding quarter and a net loss of $25.7 million, or $0.43 per basic and diluted share, for the fiscal fourth quarter ended June 30, 2003. Net loss for the 2004 fiscal year ended June 30, 2004 was $29.9 million, an 86% improvement from the $217 million net loss reported for the previous fiscal year.

At June 30, 2004, the company had cash, cash equivalents, short-term and long-term investments totaling $341.8 million, of which $27.4 million is set aside as restricted cash. Net cash used for operating activities during the three months ended June 30, 2004 was $883,000, which included $3.0 million of cash used for restructuring costs.

First Quarter Fiscal 2005 Business Outlook
Management's current outlook for the quarter ending September 30, 2004, including the effects of the Magic4 acquisition*, is that revenues will be within a range of $79 million plus or minus $5 million, gross profit will be between 71 and 74 percent of revenues, and net earnings / (loss) per basic and diluted share will be between $0.00 and ($0.12) per share on a GAAP basis, and $0.04 to ($0.08) on non-GAAP basis, excluding all amortization of acquisition related intangibles. Net of cash outflow of approximately $51 million for the Magic4 acquisition, management expects to have cash, cash equivalents, short-term and long-term investments, inclusive of restricted cash, of $270 million to $280 million as of September 30, 2004.

[* The Magic4 acquisition is expected to close by the first week of August 2004.]

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. Eastern today to discuss its financial results for its fiscal fourth quarter ended June 30, 2004. Interested parties may access the conference call over the Internet through the Company's web site at www.openwave.com or by telephone at 888-428-4478 or 612-332-0718 (international). A replay of the conference call will be available for 72 hours beginning at 8:30 p.m. Eastern on July 28 by calling 800-475-6701. The replay can be accessed internationally by calling 320-365-3844. Reservation number: 738336.

A live webcast of the call, together with supplemental financial information, will also be available on the Quarterly Earnings section of Openwave's website at http://investor.Openwave.com/medialist.cfm for at least 12 months.

About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWV) 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.

Non-GAAP Measure
 
The company's outlook includes a non-GAAP measure which excludes the impact of all acquisition related amortization of intangibles. The company considers this to be an important measure because it is often used by investors to evaluate the financial performance of a company.

Cautionary Note Regarding Forward Looking Statements
 
This release contains forward-looking statements (including without limitation those contained in the Business Outlook section and the quotation 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 statements. Notwithstanding changes that may occur with respect to matters relating to the Business Outlook and other forward looking statements, Openwave does not expect to, and disclaims any obligation 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.

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, Quarterly Reports on Form 10-Q for the fiscal quarters ended September 30, 2003, December 31, 2003, and March 31, 2004 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.

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

INVESTOR CONTACTS
Mike Bishop
Senior Manager, Investor Relations
Openwave Systems Inc.
650-480-4461

Joshua Pace
Chief Financial Officer
Openwave Systems Inc.
650-480-4999 		 



 
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