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Openwave Reports First Quarter Fiscal 2002 Results
REDWOOD CITY, Calif., Oct 29, 2001 /PRNewswire via COMTEX/ -- Openwave Systems
Inc. (Nasdaq: OPWV), the worldwide leader of open, IP-based communications
infrastructure software and applications, today announced that revenues for the
first fiscal quarter ended September 30, 2001 were $117.2 million as compared to
$80.8 million in the first quarter of fiscal 2000.
Pro forma loss for the first fiscal quarter was $5.9 million, or $0.03 per basic
and diluted share, excluding merger and acquisition-related charges and
stock-based compensation compared to a pro forma loss of $4.9 million or $0.03
per basic and diluted share for the first fiscal quarter of 2000. The pro forma
loss per share is based on 171.4 million and 162.0 million weighted average
basic shares outstanding for the first fiscal quarters of 2001 and 2000
respectively.
The Company used $5.1 million in cash from operations for the first fiscal
quarter. As of September 30, 2001, the Company had cash, cash equivalents,
short-term and long-term investments of $365.1 million, excluding $22.3 million
set aside as restricted cash, compared to $369.7 million of cash, cash
equivalents, short-term and long-term investments as of the end of the June 2001
quarter, excluding $20.7 million in restricted cash. Total assets were $1.63
billion and stockholders' equity was $1.49 billion as of September 30, 2001.
"Openwave is realigning our operations to navigate the unprecedented uncertainty
of the telecommunications market," said Don Listwin, chairman, president and
CEO. "With our leading technology, strong balance sheet and solid global
customer base, Openwave is committed to improving profitability, extending
market share and driving the growth of the mobile Internet."
Net loss for the first fiscal quarter including merger and acquisition-related
charges and stock-based compensation was $170.5 million, or $0.99 per basic and
diluted share, compared to a net loss of $168.0 million, or $1.04 per basic and
diluted share for the first quarter in the prior fiscal year.
Total active mobile subscribers grew by 4.1 million to 25.7 million at the end
of September 2001, up from 21.6 million at the end of June 2001. During the
quarter, Verizon Wireless became the sixth wireless communications service
provider to achieve critical mass by reporting over one million active mobile
data subscribers using Openwave's technology as of quarter end.
Openwave's messaging business grew to 189.0 million licensed seats as of the end
of September 2001, with activated seats reaching 124.9 million. Communications
service providers that have licensed over one million seats grew to 40 in the
September quarter from 37 at the end of June 2001.
Planned Restructuring
Management intends to realign the company's operations to reduce operating
expenses by approximately $20 million per quarter prospectively, with such cost
reductions to begin in the December quarter and to continue in succeeding
quarters until the targeted level of reductions has been achieved. Management
anticipates a restructuring charge of approximately $35 million to $40 million
to be recorded in the December 2001 quarter.
December Quarter 2001 Financial Outlook
The following statements are forward looking and actual results may differ
materially due to factors noted below, among others.
Management's current outlook for the quarter ending December 31, 2001 is that
revenues will be $100 million with a potential variability of plus or minus 15
percent, gross profit will range between 83 and 85 percent, and that pro forma
loss per share will range between $0.06 and $0.19 per share.
Editors Note: Openwave Systems Inc. has scheduled a conference call for 5:00 pm
EST today to discuss the results for the first fiscal quarter. Interested
parties may access the conference call over the Internet through the Company's
web site at www.openwave.com or by telephone at 877-715-5318 (domestic U.S.),
973-872-3462 (International). A replay will be available for 48 hours following
the conference call through the Company's web site or by telephone at
877-519-4471 (domestic U.S.), 973-341-3080 (International), using reservation
number: 2899960. |
