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  OPENWAVE REPORTS SECOND QUARTER FISCAL 2009 FINANCIAL RESULTS
  

  REDWOOD CITY, Calif. - January 27, 2009 -- 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 second fiscal quarter ended December 31, 2008 were $48.1 million, compared with $51.0 million in the prior quarter ended September 30, 2008 and $47.4 million in the December quarter in the preceding year. Bookings for the quarter were $39.3 million.

"Openwave is running more efficiently with effective cost control and improving sales pipeline and channel efforts," said Ken Denman, CEO of Openwave. "Our customers and partners are making more conservative, incremental purchasing decisions due to the current economic environment, however industry trends are still positive and moving toward Openwave's products."

On a GAAP basis, net loss for the second fiscal quarter ended December 31, 2008 was $61.7 million, or $0.74 per share, compared with net loss of $10.5 million, or $0.13 per share, in the prior quarter and a net income of $4.9 million, or $0.06 per share, in the December quarter in the preceding year. GAAP net loss for the quarter includes an impairment to goodwill of $57.0 million. On a non-GAAP basis, net income, which excludes the impairment of goodwill, amortization of intangibles and other acquisition-related costs, stock-based compensation, costs associated with the stock option review and special investigation, discontinued operations, other-than-temporary impairment of investments and restructuring costs, for the second quarter ended December 31, 2008 was $1.4 million, or $0.02 per share, compared with a net loss of $1.0 million, or $0.01 per share, in the prior quarter and a net loss of $9.3 million, or $0.11 per share, during the December 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 income (loss). Non-GAAP net income (loss) excludes certain items since they are related to unique non-recurring events, such as, costs associated with the stock option review and proxy contest. Additionally, non-GAAP net income (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 income (loss) excludes non-cash expenses that relate to non-routine events, such as the impairment of goodwill, amortization of intangibles and acquisition-related costs. The Company considers non-GAAP net income (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 income (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 second quarter ended December 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) 360-9865 or (913) 312-6674 (international). A replay of the conference call will be available for two weeks 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: 6843104.

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, its Quarterly Report on Form 10-Q for the period ended September 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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