anybody interested in the openwave mid quarter call from July 2. Preannouced caused opwv to fall from 5s to 2 (lower now). Any opinions on opwv technology will be appreciated- I don't really understand the company.
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Openwave mid quarter conf call
revs 54-71mm below prior outlook
Americas strongest, prof services met expectations.
ROW underperforming.
booking:revenue this qtr dropped below 1:1 after
rising to 1:1 last qtr.
gross prof margin 70-75%
cash use for the qtr break even - 5mm
285mm in cash and cash equivs and st investments
at the end of qtr.
Don Listwin
wireless carriers now eclipse land line revenue
market outside of asia finally moving 2nd half year
order close times increased.
Openwave leading software infrastructure for wireless platform
Q&A
Soundview
-wireless gateway numbers, net adds
Listwin can't comment
-maintenance and services inline- are these flat from prior q
Listwin- yes this was flat but met expectations
-license revs 33-40mm?, is it messaging or wireless gateway
Listwin, equally weighted the weakness across messaging/wireless gtw
Peter Friedland WR Hambrecht
Cash number 285mm not incl signalsoft transaction which closes next qtr.
market based condition across theatres and product lines for license
revenue
Eddie Wu CIBC world markets
-VZ strength wrt microsoft, did this strength effect the forecast for intl= too aggressive
Listwin- no we knew, but Americas has stong leadership. VZ closed a large deal with
opwv before, they anticipated the strength
Mike Walkley RBC capital mkts
-what is the catalyst to exit the perfect storm, is it MMS
Big Brother, MMS, world cup- none are "killer apps", second half not a turnaround but
is the bottom. Business hard to close- color phones and new networks are exciting.
David Razor Morgan Stanley
-what is the backlog number
Listwin- the backlog is below 1:1 wait until the qtr results
-what is the breakeven target
Listwin- trying to breakeven 100mm-110mm including acquisitions, therefore
breakeven in q4 not likely. Listwin wants to see deferred deals closed in next
qtr.
-285mm includes restricted, used to be 335mm in march, what happened to the
50mm. 5mm cash use, elipsis acq 3mm, put contracts 18mm accounts for the
difference. Low single digits mm capex. 22mm is associated with the HQ bldg
as a deposit on the lease.
Gibbons K2 investments
-how is this qtr affecting signalsoft
its a cash tender offer so no affect.
Kim Long first boston
- views on US market with competing java, brew technologies, also MMS when will it
ramp and how to sell vs. handsets vendors nokia
Listwin- Java brew MMS utilize WAP as underlying infrastructure therefore java, brew
is a positive. Brew= qualcomm only. Elipsis supports java "vending machines"
subsriber access and management technologies underlying java brew is wap/opwv.
KDDI in japan uses opwv messaging technology for photo phones. opwv continue
to work on photo messaging as app on top of MMS. Opwv is second sourcing to
ramp demand that they anticate based on Japan photo phone adoption.
7 out of 81 new handsets support MMS.
Tonya Vonovich merrill lynch
-pricing, are we seeing differentials
aggressing on the infrastructure side of the business cost cutting is happening. messaging
not much cost cutting.
Pacific Crest
-weakness excluding US and Japan? Japan, has it maintained, not fallen off etc.
Japanese business is 2 flagship accts KDDI and jphone so opwv is strong. Bookings were
weak, revenue held up. APAC a small market for opwv. EMEA a challenge - too many
carriers, competition Nokia and Ericksson. New management in EMEA will improve
European sales.
-even with the Europe EMEA weakness, is there enough to recapture there for opwv?
Yes new EMEA vendors ie Nokia don't have enough experience with large scale MMS
implementations. Opwv is putting in new EMEA leadership and trying to form alliances.
Opwv has the ability to do large MMS impletmentations
Jacob Synder
EMEA competition- bundling will be prevalent there. Opwv will bundle all services so
everything will work together. Photo messaging+ location = platform with all services.
-Is end user demand weakening or is it a mkt share issue in Europe.
European carriers are focussing on MMS as a silver bullet. Subscriber growth is ok
but narrowly focussed now.
Tim Luke Lehman
-Gross margin 70-75% range?
Yes since maintenance is a larger % revs.
-how is MM02 doing
evolving into a telco oriented customer- no real revenue impact
-Japan KKDI Jphone how much revenue in Japan for qtr
Both KKDI and Jphone came in better than expected. Opwv has long term contracts so
no variability. KKDIs regular contribution a little over 10mm/qtr.
Steven Brady Goldman
-100 2.5g networks to be rolled out in the year, still true?
No specifics, but Listwin says seems to be on track. Sprint for example on target.
Camera phones maybe not on target.
-AT&T wireless m-mode campaign have you seen any impact
Its a brand campaign for them, opwv doesn't know.
Peter Friedland WR Hambrecth
17-22 cents loss? 30mm loss per operations vs. 5 million burn.
Dwayne Fenningwoth raymond james
-US strength, new customers growth or ramps for launch?
Listwin- new app wins, not much subscriber growth. More a broadening of relationships
with existing customer base. Platform strategy taking hold.
Listwin trying to be a pureplay in this space, we will try to get through this tough period and emerge
dominant much in the way BEA has done in platform. We will try to be transparent. |
