OPWV ($53 run $58 win) Has Operating Profit in Second Quarter
REDWOOD CITY, Calif. (Reuters) - Communications software provider Openwave Systems Inc. (NasdaqNM:OPWV - news), formed through the merger of Phone.com and Software.com, on Monday posted a quarterly operating profit ahead of schedule and raised its expectations for 2001.
The company had operating earnings of $15.8 million, or 9 cents a share diluted, in the second-quarter ended Dec. 31, handily beating analysts' consensus estimate of a loss of 3 cents a share, according to First Call/Thomson Financial, which tracks such data.
However, the company posted a net loss of $228.6 million, or $1.38 a diluted share, for the quarter, after merger and acquisition costs and stock-based compensation. This compared with a combined loss of $168 million, or $1.04 a share, for Phone.com and Software.com in the year-ago period.
Revenues rose to $109.7 million from $29.1 million over the same period.
Openwave's results surpassed its own expectations. The company, which joins Phone.com's wireless Internet infrastructure with Software.com's messaging software, said in November it expected to break even by the end of its fiscal third quarter ending in March.
The Redwood City, Calif.-based firm said it benefited from strong wireless subscriber additions throughout the second quarter. Total active mobile subscribers using Openwave products grew to 12.1 million at the end of December from 6.9 million at the end of September.
Openwave said that for 2001, it expects revenues to grow 10 to 20 percent to about $640 million, up from a previous forecast of $580 million. It expects full-year operating earnings of 46 cents per share, excluding one-time items.
Openwave shares rose $4-1/4 or 8.7 percent to $53-1/4 on Nasdaq prior to the company's announcement. |
