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  OPENWAVE REPORTS FIRST QUARTER FISCAL 2009 FINANCIAL RESULTS
  

  REDWOOD CITY, Calif. - October 29, 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 first fiscal quarter ended September 30, 2008 were $51.0 million, compared with $53.5 million in the prior quarter ended June 30, 2008 and $53.0 million in the September quarter in the preceding year. Bookings for the quarter were $29.3 million.

"Openwave continues to implement the turnaround plan we outlined previously. Since announcing our restructuring in March we have improved gross margins, reduced operating expenses and revenues have remained level," said Bruce Coleman, interim CEO of Openwave. "However, bookings, which are generally lower during our first quarter, were lower than Q1 of last year as we experienced delays in expected orders and carriers reevaluated spending in these uncertain economic times."

On a GAAP basis, net loss for the first fiscal quarter ended September 30, 2008 was $10.5 million, or $0.13 per share, compared with net income of $2.2 million, or $0.03 per share, in the prior quarter and a net loss of $14.1 million, or $0.17 per share, in the September quarter in the preceding year. The company paid off $150 million in convertible debt and finished the quarter with $127 million in Cash and Investments.

On a non-GAAP basis, net loss, which excludes amortization of intangibles and other acquisition-related costs, stock-based compensation, other-than temporary impairments of investments, legal costs associated with unusual events, retention bonuses related to when the Company explored strategic alternatives and restructuring costs, for the first fiscal quarter ended September 30, 2008 was $1.0 million, or $0.01 per share, compared with $1.9 million, or $0.02 per share, in the prior quarter and $5.6 million, or $0.07 per share, during the September 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.

Given the recent decline in our stock price, management reviewed the recoverability of the Company's goodwill balance and concluded an impairment charge was not required as of September 30, 2008. If the Company's common stock price continues to trade below book value per common share, the Company may have to recognize an impairment of all, or some portion of, its goodwill and other intangible assets in the near future.

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 other-than-temporary impairments of investments, legal costs associated with unusual events, and retention bonuses related to when the Company explored strategic alternatives. Additionally, non-GAAP net loss excludes other items since they are non-cash 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. The company considers non-GAAP net loss to be an important measure because it provides a useful measure of the operational performance of the Company and is used by the Company's management for that purpose. In addition, investors often use a measure such as this to evaluate the financial performance of a company. Non-GAAP net loss results are presented for supplemental informational purposes only for understanding Openwave's operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. eastern time today to discuss its financial results for its first quarter ended September 30, 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 (866) 454-4206 or (913) 312-0669 (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. Reservation number: 3532430.

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 for at least 12 months.

About Openwave
Openwave Systems Inc. (Nasdaq: OPWV) is one of the world's leading software innovators, offering a mediation platform and tools to mobilize the Internet.

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, analytics, messaging and location 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, 2008 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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