Knobias Clip Report (10-30-2008) OPWV
Submitted By Knobias ClipReport
OPWV: Management Discusses Q1 Results and Progress in Restructuring
By Fain Hughes, fhughes@knobias.com
Shares of Openwave Systems, Inc. (OPWV) moved higher in heavy trading on Thursday after the Company reported financial results for the first quarter ended ended September 30, 2008.
Revenues for the first fiscal quarter 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. Non-GAAP net loss 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.
Karen Willem, CFO of Openwave, commented in a conference call, “Our lower than planned bookings in Q1, due to a change in our staff during the quarter and the general uneasiness of the economy, will likely result in lower Q2 revenues. At the same time, our sales pipeline has been growing steadily since last quarter with a backlog of $220 million. This puts us in a very good position going forward. Our gross margins will still vary due to mix. Our operating expenses are now in the low $30 million range. We will continue to look for more ways to be efficient and save expenses, while we are actively recruiting to fill key positions in sales and services. Our goal of turing cash flow positive and profitable sometime in our second fiscal half has not changed.”
Bruce Coleman, interim CEO of Openwave, added, “We put to bed many issues and distractions in the last quarter. The numbers in this quarter demonstrate that we have stabilized the business and are executing according to plan in a very challenging environment. Since announcing our restructuring in March, we have improved gross margins, reduced operating expenses and revenues have remained level. Our industry is growing very rapidly, and we are positive about our internal progress. However, we remain cautious because of the uncertainty in this economic environment.”
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