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Home > News Room > Press Releases > 2008 > 04/23/2008
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  OPENWAVE REPORTS THIRD QUARTER FINANCIAL RESULTS
  

  REDWOOD CITY, Calif. - April 23, 2008 -- Openwave Systems Inc. (Nasdaq: OPWV), one of the world's leading software innovators enabling revenue-generating personalized services which converge the mobile and broadband experience, today announced that revenues for the third fiscal quarter ended March 31, 2008 were $58.0 million, compared with $63.2 million in the prior quarter ended December 31, 2007 and $62.7 million in the March quarter in the preceding year. Bookings for the quarter were $57.1 million.

"I am pleased that we were able to achieve an improved bottom line result despite lower than anticipated revenue," said Charles Levine, Openwave chairman of the board. "The revenue was impacted by a number of key contracts for which purchase orders had not been received by the end of the quarter."

"The board and management team are committed to executing Openwave's corporate strategy. In Phase 2, that strategy focuses on streamlining its products and reducing operating expenses. As we drive expenses down and position the company for long-term profitability, our focus will evolve to broadening our customer base and growing our business profitably. We are fortunate to have attracted Bruce Coleman to the interim CEO position to assist us in accelerating the execution of Phase 2. Bruce is a seasoned executive with a unique set of skills that will be invaluable to Openwave in its turnaround."

On a GAAP basis, net loss for the third fiscal quarter ended March 31, 2008 was $14.7 million, or $0.18 per share, compared with net income of $4.9 million, or $0.06 per share, in the prior quarter and a net loss of $32.5 million, or $0.35 per share, in the March quarter in the preceding year.

Net loss on a non-GAAP basis for the third fiscal quarter ended March 31, 2008 was $3.3 million, or $0.04 per share, compared with $4.8 million, or $0.06 per share, in the prior quarter and $18.6 million, or $0.20 per share, during the March quarter of the prior year. A reconciliation between net income (loss) on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Non-GAAP Measure
The Company's stated results include a non-GAAP measure, non-GAAP net loss. Non-GAAP net loss excludes certain items since they are related to unique non-recurring events, such as restructuring costs, amortization of acquisition-related costs and stock-based compensation, professional fees associated with unusual events, retention bonuses related to when the Company explored strategic alternatives, gains on sales of technology, discontinued operations, and impairments on investments. Non-GAAP net loss excludes these items since they are items that other companies exclude, in order to compare the Company with other companies, such as stock-based compensation, and other expenses which would not be helpful to evaluate the Company's on-going business, such as restructuring costs and discontinued operations. Lastly, non-GAAP net loss excludes non-cash expenses that relate to non-routine events, such as the amortization of intangibles and acquisition-related costs.

Management believes this non-GAAP information may be useful to investors because the Company has historically provided this or similar information and understands that some investors find it helpful in analyzing the Company's expenses and comparing them to the expenses of the Company's competitors or others. Management uses this non-GAAP information, along with GAAP information, in evaluating the Company's historical and projected operating results, primarily with a view to assessing ongoing expenses exclusive of specific, non-recurring transactions, as may be the case with our restructuring, professional fees associated with unusual events, impairments, and acquisition-related costs.

This non-GAAP information is not prepared in accordance with generally accepted accounting principles and may differ from the non-GAAP information used by other companies. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP information. In this regard, while some transactions causing the non-GAAP expenses are non-recurring, the Company in the future may effect new transactions, such as acquisitions or restructurings that will trigger similar expenses. For these reasons, our non-GAAP information may not be as useful to investors as the GAAP information also provided.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. eastern time today to discuss its financial results for its fiscal third quarter ended March 31, 2008. Interested parties may access the conference call over the Internet through the Company's web site at www.openwave.com or by telephone at (800) 475-6890 or (913) 312-6696 (international). A replay of the conference call will be available for one week beginning at approximately 8:30 p.m. eastern time today by calling 888-203-1112. The replay can be accessed internationally by calling (719) 457-0820, access code: 6884829.

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 one of the world's leading innovators of software applications and infrastructure designed to enable revenue-generating, personalized services, including merchandising and advertising, which converge the mobile and broadband experience across all of a user's devices.

As the communications industry intersects with the Internet, Openwave software enables service providers to converge services, increasing the value of their networks by accelerating time to market and reducing the cost and complexity associated with new service deployment. Openwave's unique product portfolio provides a complete range of service management, messaging, location and client technologies. 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 press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1943 and Section 27A of the Securities Act of 1933, including, but not limited to, material contained in quotations, increased demand for some of the Company's products and expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave's management. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Openwave assumes no obligation to update the forward-looking statements included in this press release.

In particular, the following factors, among others, could cause actual results to differ materially from those projected: (a) 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; (b) the ability to improve sales productivity; (c) the ability to continue to sell our existing products and enhancements; (d) the ability to develop and commercialize new products; (e) 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; (f) increased global competition and pricing pressure on our products; (g) the unknown effects of management changes; and (h) the loss of key personnel.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in the Company's 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, 2007, its Quarterly Report on Form 10-Q for the periods ended September 30, 2007 and December 31, 2007 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 website at www.openwave.com.

Download the financials here (.pdf).
 
Openwave is a trademark of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

Investor Relations
Mike Bishop
The Blueshirt Group
Tel: 415-217-4968
mike@blueshirtgroup.com

  



 
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