Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Openwave Systems (formerly Phone.com & Software.com) (OPWV) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (112)	7/25/2002 1:22:26 PM
From: Eric L	Respond to of 184

Nice job with the cc coverage. Thanks. Right now I would say that Don Listwin has a real challenge. Here is Reuters on yesterday: >> Openwave Shares Fall 27 Pct After Earnings Report July 24, 2002 Reuters Shares of wireless software company Openwave Systems Inc. (NasdaqNM:OPWV - News) on Wednesday fell more than 27 percent after the company sounded a cautious note for fiscal 2003. The stock closed off 39 cents or 27.5 percent at $1.03 on Nasdaq. Earlier shares fell to an all-time low of $1. Redwood City, California-based Openwave on Tuesday posted a fiscal fourth-quarter loss that was in line with its own lowered expectations. But the company warned it would post a larger loss in the September quarter than analysts' average expectation. The company said on Tuesday in a conference call 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. << - Eric -

To: Lizzie Tudor who wrote (112)	7/25/2002 1:51:44 PM
From: Eric L	Read Replies (1) \| Respond to of 184

Lizzie, Matt Hoffman of Soundview has been very high on OPWV all year. OPWV and MOT have been his wireless favorites. He just lowered his price target to $3 from $6 and he states: The company continues to see lengthening sales cycles, which will push sales at least into 2HC02. Openwave maintains its outlook that two-thirds of the pipeline remains intact, but is delayed. After showing signs of stabilization, providing the impetus for the original upgrade, the bookings number was not good this quarter coming in around half of last quarter when adjusted for a one-time, non-licensing-related contract. It can be fairly said that our thesis that MMS contract wins, GPRS phones with color screens, and concrete operator marketing plans for 2H02 packet data launches would help fuel a 2H02 turnaround in Openwave shares was overly optimistic. We are less clear now there will be a quick turnaround than we were when we made the upgrade at $5, but with the stock now trading at a discount to cash per share and the market for the company’s products only getting closer, we are sticking to our rating. He also states: We appreciate Openwave’s more complete disclosure this quarter, providing bookings, and the much-sought-after infrastructure and application revenue metrics now in its report. When things start to turn, we believe the improved disclosure will help win back investors. Backlog and bookings were both up sequentially, however, as we indicated above, about half of the $86 million bookings number included a one-time non-licensing-related contract. Cash exiting the June quarter was $294 million, down from $313.7 million last quarter. Operational cash burn in the quarter was $3.4 million with restructuring costs totaling $2.7 million. However, Openwave expects to exit the September quarter with $226-$241 million in cash. Expected uses of cash include $25-$30 million in operations, $20-$25 million for the acquisition of Ellipsus and SignalSoft, and $8-$13 million in other. We would like to see the company more aggressively guarding its cash in this environment, and we feel the 3%-5% decline in operating expenditure is only a tepid start. Conservatively, $226 million in cash at the end of the September quarter equals $1.30 per share. Compete report can be accessed here: research.soundview.com There is an interesting article (45 days old but good) on the arena Openwave plays in here: Message 17785540 - Eric -