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  OPENWAVE REPORTS FOURTH QUARTER AND FISCAL 2003 YEAR END RESULTS
  

  REDWOOD CITY, Calif. - July 24, 2003 -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced that revenues for the fourth fiscal quarter ended June 30, 2003 were $66.5 million, an increase from the third fiscal quarter revenue of $63.5 million. Revenues for the twelve months ended June 30, 2003 were $268 million.

The Company delivered results at the high end of the range for management's outlook with respect to a number of metrics in addition to revenue. These metrics included gross margins of 73 percent, ending total cash and investments of $234.1 million, and EBITDA without restructuring charges ahead of the outlook.

"We are pleased that we delivered to plan and grew revenue this quarter amid challenging market conditions," said Don Listwin, president and CEO of Openwave. "Our position in the industry is improving as mobile data is becoming a strategic initiative for operators worldwide."

Based on Generally Accepted Accounting Principles (GAAP), net loss for the fourth fiscal quarter of 2003 was $25.7 million, or $0.14 per basic share, compared to a net loss of $23.2 million, or $0.13 per basic share, for the third fiscal quarter. The per share amounts are based on 179.2 and 178.6 million weighted-average basic and diluted shares outstanding for the two comparative periods, respectively. EBITDA loss, which consists of earnings before interest, taxes, depreciation and amortization of assets including deferred stock-based compensation expense, was $13.4 million. EBITDA loss without restructuring-related charges was $5.5 million. The Company considers EBITDA to be an important measure of performance because it reflects the resources available to fund the Company's operations, and it is an important metric often used by investors to evaluate the performance of a business.

In connection with the cost reduction plan announced on June 19, 2003, the Company recorded $8.6 million in restructuring-related charges during the quarter. In addition, the Company recorded $1.3 million in charges during the quarter that resulted primarily from changes in estimates of certain operating leases from the prior restructuring plans. The combined restructuring impact was $.05 per basic share.

As of June 30, 2003, the Company had cash, cash equivalents, short-term and long-term investments totaling $234.1 million, of which $22.3 million is set aside as restricted cash. Net cash used for operating activities during the three months ended June 30, 2003 was $8.1 million, which includes $3.7 million of cash used for restructuring costs. Net cash provided by financing and investing activities was $25.2 million, which includes $24.9 million in net proceeds from the sale of short- and long-term investments. Total assets and stockholders' equity were $366.7 million and $182.3 million, respectively, as of June 30, 2003.

First Quarter Fiscal 2004 Business Outlook
Openwave's Business Outlook set forth below will be available on the Company's Investor Relations Web site throughout the current quarter. Notwithstanding changes in our outlook that may occur in the interim, we do not expect to update the Business Outlook until the release of our next quarterly earnings announcement; however, Openwave reserves the right to update the full Business Outlook or any portion thereof at any time for any reason. 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 September 30, 2003 is that revenues will be within a range of $64 million plus or minus 10 percent, gross profit will be between 71 and 74 percent of revenues, and GAAP net loss per share will be between $0.05 and $0.14 per share.

For the quarter ending September 30, 2003, management expects EBITDA loss to be approximately $1 million to $15 million, including $2.5 to $3.5 million in restructuring charges. The EBITDA loss outlook excludes approximately $8.4 million in charges for interest, tax, depreciation, and amortization, which amounts would be included in GAAP net income. Management expects to have cash, cash equivalents, short-term and long-term investments, inclusive of restricted cash, of $205 to $215 million as of September 30, 2003.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. EDT today to discuss its financial results for the fourth 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 (888) 428-4480 or (651) 291-5254. A replay of the conference call will be available for 72 hours beginning at 5:30 p.m. Pacific time on July 24 by calling (800) 475-6701. The replay can be accessed internationally by calling (320) 365-3844, reservation number: 690563.

A live webcast of the call, together with supplemental financial information, will also be available on the Quarterly Earnings section of Openwave's website at http://investor.openwave.com/medialist.cfm for at least 12 months.

About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWV) is the leading provider of open software products and services for the communications industry, serving more than 70 mobile operators, 47 handset manufacturers and 22 broadband suppliers. Openwave's breadth of products, including mobile phone software, multimedia messaging software (MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. Headquartered in Redwood City, California, Openwave has offices in 28 locations and in 14 countries. For more information please visit www.openwave.com.


 
Download the financials here. (PDF)

 
Openwave, the Openwave logo and Services OS are trademarks and or registered trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

Openwave Systems Inc.
Joshua Pace
Chief Accounting Officer
+1 650 480 4999
investor@openwave.com

  



 
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