OPWV is the example of what INSP
by: howsmydrivingal 07/24/02 01:45 pm
Msg: 417937 of 417941
avoided by biting the bullet many months ago and revamped the business plan in order to survive until wireless revenues start to flow.
INSP is feeding off of two solid 'subsidiary' businesses, Wireline and Merchant Services. They continue to reduce costs while increasing metrics. Even the wireless business is showing smaller losses as they continue to improve the product (WAM).
Maybe it is the case where OPWV does not quite make it until wireless revenues start in earnest. Maybe they get bought out, maybe INSP buys the assets cheap, who knows.
But you'd have to conceded that INSP is chugging along.
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Reuters Company News
Openwave shares fall 22 pct after earnings report
CHICAGO, July 24 (Reuters) - Shares of wireless software company Openwave Systems Inc. (NasdaqNM:OPWV - News) on Wednesday fell nearly 22 percent to an all-time low of $1.11 after the company sounded a cautious note for fiscal 2003.
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The stock was down 30 cents, or 21 percent, at $1.12 in midmorning trade on Nasdaq.
Redwood City, California-based Openwave on Tuesday posted a fiscal fourth-quarter loss that was in line with its own lowered expectations, but warned that it expects the market to remain difficult for the next four to six quarters as wireless operators cut back on spending.
"The business hasn't stabilized yet and continues to trend down," Peter Friedland, wireless analyst with WR Hambrecht & Co., said. "Wireless Internet services have yet to generate meaningful interest outside of Korea and Japan."
Friedland said he was particularly disappointed by Openwave's guidance that it would burn through $25 million to $30 million in cash in the September quarter, up from $3.4 million in the June quarter.
"We continue to believe Openwave is well positioned to capitalize on the deployment of wireless data, but we expect the stock will not recover until a return of mobile data subscriber growth," Edward Snyder, analyst with J.P. Morgan, said in a research note.
Openwave is the top supplier of software that mobile service providers use to offer text and instant messaging to customers. It also provides mobile Web-browsing software.
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