Blog Post

Earnings: Openwave’s Bottomline Widens Based On One-Time Costs

Openwave Systems (NSDQ: OPWV), which competes in the analytics, content and messaging space in mobile, released second-quarter fiscal results for the period ended Dec. 31, 2008. Revenues totaled $48.1 million, dropping from $51 million in the prior quarter and slightly increasing from $47.4 million in the same period a year ago. The company, which has been going through a period of restructuring, including hiring a new CEO and selling off its mobile browser, “is running more efficiently with effective cost control and improving sales pipeline and channel efforts,” said Ken Denman, Openwave’s new CEO. However, Denman still cautioned that customers are sensitive to the economic environment.

In Q2, the company recorded a net loss of $61.7 million, which was much wider than the $10.5 million lost in the prior quarter. In the year-ago period, the company recorded a profit of $4.9 million. When the company excluded certain items, like $427,000 in restructuring charges; $1.26 million in acquisition-related costs; and $57 million in impairment of goodwill; the company said it would have reported a profit of $1.35 million. Release.