Mobile developer Openwave Systems is having some problems transforming from a technology platform provider to an end-to-end mobile solutions company (back in 2005 the company announced the acquisition of Musiwave in a bid to move up the value chain and offer content and services on top of its technology platform). Openwave has lowered its anticipated revenue for the fiscal third quarter ending March 31, 2007, to “approximately $65 million to $70 million” — the previous estimate was $85-90 million. The reduction was put down to “inherent uncertainty in predicting the Company’s future financial performance” due to the companies product transition.
Also, Robert Vrij, Executive Vice President of Worldwide Field Operations, has been appointed President and Chief Executive Officer. He replaces David Peterschmidt, who joined the company as CEO and President in Nov 2004. Peterschmidt isn’t completely gone — he will remain on the board and chair a Strategic Alternatives Committee to explore a range of options including a sale of the company. Openwave has retained Merrill Lynch to advise it on this.
Not everyone is happy with this… Harbringer Capital Partners, which owns more than 10 percent of Openwave, is trying to get the company to change its board and its strategy. “By appointing Peterschmidt to chair this committee, the board has put its interests and that of the senior management above those of shareholders and the Company,” Harbinger Managing Director Howard Kagan said in a statement that was quote by Reuters.
Openwave also announced it has retired 4 million shares as part of a $100 million share repurchase plan. (release)
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