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Home > News Room > Press Releases > 2007 > 06/19/2007
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  OPENWAVE PROVIDES UPDATE ON EXECUTION OF STAND-ALONE PLAN
  

  Synergistic Product Portfolio Creates Deep Strategic Customer Relationships
Seasoned and Proven Senior Management Team in Place
Restructuring on Track to Yield Annual Savings Target of $50M
 
REDWOOD CITY, Calif. - June 19, 2007 -- Openwave Systems Inc. (NASDAQ: OPWV), a leading independent provider of software products and services for the communications industry, today provided an update on the Company's progress in executing its stand-alone plan, which is designed to deliver sustainable revenue and profit growth. Under the plan, Openwave is optimizing its product portfolio in order to competitively differentiate itself, significantly reduce costs, and enhance stockholder value.

Robert Vrij, Openwave's President and CEO, stated, "During recent meetings with many of our stockholders, management discussed its stand-alone plan to continue to capitalize on Openwave's market leading position. We strongly believe that our next generation products, experienced management team, reduction in operating expenses, and cash resources position Openwave for future success."

Copies of management's presentations are available on Openwave's website at http://www.openwave.com/us/investors/.

Mr. Vrij continued, "Openwave provides customers with synergistic benefits and a strong value proposition through a focused product portfolio of gateway, converged messaging applications, client, and location products, as well as our cross-functional account and professional service teams. We are confident that our solutions help customers increase revenue opportunities, reduce operating expenses and provide a rapid return on investment. We are also making progress with our next generation products and joint go-to-market relationships with a number of industry-leading IMS communication vendors, and have plans for a new channel partnership program."

Mr. Vrij concluded, "We are confident that we have the right team in place to execute the stand-alone plan. With the recent appointment of Hari Haran as senior vice president of Worldwide Field Operations and our expected near-term appointment of a new Product Management organization leader, we will have seasoned and proven executives who have managed multi-billion dollar responsibilities. With a significant portion of management's compensation tied to the Company's performance, the interests of our management team are closely aligned with those of all Openwave stockholders. We are committed to delivering sustainable revenue and profit growth and enhancing value for all stockholders."

For fiscal year 2008 beginning July 1, 2007, Openwave anticipates revenue of approximately $300 million with sequential revenue growth throughout the year. Openwave also stated that it is on track to achieve annual cost savings of approximately $50 million. As part of the restructuring, the Company is refocusing its product portfolio on the gateway, converged messaging applications, client, and location product lines, with each of these areas gaining a meaningful increase in dedicated resources.

Mr. Vrij is also working with the Nominating and Corporate Governance Committee of the Board of Directors to implement the Board's plan to significantly increase the size of the Board by adding individuals with relevant applications or operator experience.

As previously announced, Openwave's Board, in consultation with its financial and legal advisors, unanimously determined that Harbinger's unsolicited partial tender offer is inadequate and not in the best interest of Openwave and all of its stockholders. Accordingly, the Openwave Board continues to strongly recommend that all Openwave stockholders not tender their shares into Harbinger's offer.

About Openwave
Openwave Systems Inc. (Nasdaq: OPWV) is one of the world's leading innovators of software applications and infrastructure designed to enable revenue-generating, personalized services, including mobile analytics, content adaptation, mobile and broadband advertising, and a suite of unified messaging solutions.

As the communications industry intersects with the Internet, Openwave software enables service providers to converge services, increasing the value of their networks by accelerating time to market and reducing the cost and complexity associated with new service deployment. Openwave's unique product portfolio provides a complete range of mobile internet service management, messaging, and location based solutions. Openwave is a global company with a blue chip customer base spanning North America, Latin America, Australia and New Zealand, Asia, Africa, Europe, and the Middle East. Openwave is headquartered in Redwood City, California. For more information please visit www.openwave.com.

Cautionary Note Regarding Forward Looking Statements
 
In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to change business strategy, development plans and product offerings; (b) the ability to successfully implement and recognize cost savings; (c) the ability to develop and commercialize new products; (d) the results of Harbinger's unsolicited partial tender offer; (e) industry and customer adoption and acceptance of new products; (f) risks associated with the development and licensing of software generally, including potential delays in software development and technical difficulties that may be encountered in the development or use of our software; (g) the ability to attract and retain key employees; and (h) increased global competition and pricing pressure on our products.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2006, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave's website at www.openwave.com.

 
Openwave and the Openwave logo are trademarks of Openwave Systems Inc. or its subsidiaries. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

Openwave Systems Inc.
Michael Bishop
Investor Relations
Tel: 650-480-4461
investor@openwave.com

  



 
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