Openwave Reports Third Quarter Fiscal 2010 Financial Results

Openwave Systems Inc. (Nasdaq: OPWV), a global software innovator delivering context-aware mediation and messaging solutions,, today announced that revenues for the third fiscal quarter ended March 31, 2010 were $40.1 million, compared with $49.7 million in the prior quarter ended December 31, 2009 and $44.7 million in the March quarter in the preceding fiscal year. Bookings for the third quarter of fiscal 2010 were $41.1 million. The company ended the quarter with $123.6 million in cash and investments.

“Openwave has made demonstrable progress to date in fiscal 2010, and we’re on the path to improve bookings as compared to fiscal 2009,” said Ken Denman, CEO of Openwave. “With the recent releases of our video optimization, policy management and analytics products, we are seeking to capitalize on new opportunities to help carriers manage and monetize their capacity constrained networks. We’re prudently engaged in building the sales pipeline and improving the fundamentals of the business.”

On a GAAP basis, net loss for the third fiscal quarter ended March 31, 2010 was $4.2 million or $0.05 per share, compared with a net income of $213,000, or $0.00 per share, in the prior quarter and a net loss of $7.8 million, or $0.09 per share, in the March quarter in the preceding year.

On a non-GAAP basis, net loss for the third fiscal quarter ended March 31, 2010 was $2.0 million, or $0.02 per share, compared with a net income of $3.5 million or $0.04 per share, in the prior quarter and a net income of $386,000, or $0.00 per share, during the March quarter of the prior year. Non-GAAP net income (loss) excludes restructuring, impairments, amortization of intangibles and stock-based compensation, amounts associated with certain unusual events, discontinued operations, realized losses on auction rate securities and the tax impact of these items.
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 the non-GAAP measures: non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP measures exclude certain items that generally are non-recurring events. Additionally, these non-GAAP measures exclude other items that are non-cash items that many other companies exclude, in order to compare Openwave with other companies, such as stock-based compensation and amortization of intangibles. These non-GAAP measures also exclude items which management does not consider in evaluating Openwave’s on-going business, such as restructuring costs, impairments, and discontinued operations. Openwave considers non-GAAP net income (loss) to be an important measure because it provides a useful measure of the operational performance of Openwave and is used by Openwave's management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. These non-GAAP measures 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 third quarter ended March 31, 2010. Interested parties may access the conference call over the Internet through Openwave’s website at www.openwave.com or by telephone at (877) 941-1427 or (480) 629-9664 (international). A replay of the conference call will be available for two weeks beginning at approximately 8:00 p.m. eastern time today by calling 800-406-7325. The replay can be accessed internationally by calling 303-590-3030. Reservation number: 4259698.

A live webcast of the call, together with supplemental financial information, will also be available on the Earnings & Metrics section of Openwave’s website at http://investor.openwave.com. A replay will be available on the Web site for at least three months.