REDWOOD CITY, Calif.—Wireless Internet giant Openwave Systems Inc. posted revenues of $93.4 million for the second quarter, better than some analyst estimates, but its third-quarter outlook gave rise to worry. Following the news JP Morgan and Pacific Crest downgraded the company, and its stock fell about 9 percent to $7.20 per share.
The company’s pro forma loss was $12.9 million for the quarter, ended Dec. 31, compared with the pro forma income of $15.8 million the company earned in the same quarter a year ago. Openwave said it expects about $90 million in revenues for the quarter ending March 31.
Separately, wireless business software provider AvantGo Inc. posted revenues of $5.3 million and a pro forma net loss of $4.7 million for the fourth quarter, ended Dec. 31. The company expressed optimism about its sales, which include gaining 20 major customers during the quarter.
