Print
Email
Openwave Systems Inc (OPWV) filed Quarterly Report for the period ended 2011-12-31.
Openwave Systems Inc has a market cap of $186.2 million; its shares were traded at around $2.17 with and P/S ratio of 1.2.
This is the annual revenues and earnings per share of OPWV over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of OPWV.
Highlight of Business Operations:
For the remainder of fiscal 2012, in response to lower-than-expected bookings in recent fiscal quarters and our forecast for fiscal 2012, we expect that our gross margins will be between approximately 52% and 56%. However, our gross margin will continue to fluctuate from quarter to quarter, depending on the mix of software, services and hardware delivered during the quarter, which is subject to our customers’ schedules and demands. Additionally, patent revenues, if any, would cause our gross margin to be higher since these revenues do not have an associated cost of revenue. The timing of these revenues is unpredictable and is not guaranteed. During the three months ended December 31, 2011, our overall gross margin excluding the impact of amortization of intangibles and stock based compensation was 49.6%, compared to 61.0% in the three months ended December 31, 2010. For a breakout of revenue by type, see the tables below under “Summary of Operating Results”. The decrease in gross margin related to services caused an overall decline in gross margin. This was due to a large project with a customer that yields a very low margin due to customization work that was not funded by the customer. Our goal is to increase the services revenue gross margin through better project management, which in turn would improve our overall gross margin.Services revenue increased by 21% for the six months ended December 31, 2011, as compared with the corresponding period of the prior year. This increase was primarily due to a $4.7 million hardware order delivered in the first quarter of fiscal 2012 as well as the $3.5 million in services revenue in the second quarter of fiscal 2012 discussed immediately above. Additionally, the first fiscal quarter of 2011 experienced unusually low services revenue, $11.2 million, due to the completion of several large projects in that quarter.
Cost of maintenance and support decreased by 21% and 16% during the three and six months ended December 31, 2011, respectively, as compared with the corresponding periods of the prior year. These decreases are primarily attributed to reduced labor costs in fiscal 2012, as headcount declined by approximately 25% from the prior year’s period. The decline in the gross margin related to maintenance and support is attributed to lower contracted revenues.
During the three months ended December 31, 2011, sales and marketing costs decreased by 38% as compared with the corresponding period of the prior year. This decrease is primarily due to declines in labor related costs and commissions of $2.4 million and $0.3 million in facilities and information technology expenses, primarily due to a reduction in average headcount of approximately 36% as a result of the restructuring initiated in the first quarter of fiscal 2012. Additionally, there was a decline in expenses for marketing and recruiting costs of $0.5 million, in travel expenses of $0.8 million and a decline in contingent worker expense of $0.2 million from the prior year’s period.
During the six months ended December 31, 2011, sales and marketing costs decreased by 29% as compared with the corresponding period of the prior year. This decrease is primarily due to declines in labor related costs and commissions of $2.8 million and $0.5 million in facilities and information technology expenses, primarily due to a reduction in average headcount of approximately 36% as a result of the restructuring initiated in the first quarter of fiscal 2012. Additionally, there was a decline in expenses for marketing and recruiting costs of $0.5 million, in travel expenses of $1.3 million, in employee recruiting fees of $0.8 million and a decline in contingent worker expense of $0.3 million from the prior year’s period.
Subscribe RSS
