REDWOOD CITY, Calif.-Wireless Internet giant Openwave Systems Inc. sounded a note of caution for the industry, forecasting another four to six challenging quarters ahead, news that caused investors to drop the company’s stock by more than 25 percent in trading.
Openwave’s stock was trading at about $1 per share, the lowest share price ever for a company that once enjoyed prices of almost $200 per share.
“An unprecedented storm is raging in the telecommunications industry,” said Don Listwin, Openwave’s president and chief executive officer. “Openwave is committed to managing through this difficult period to emerge as the leading provider of software infrastructure for data services.”
Openwave’s earnings were in line with its previous guidance, coming in at $70 million for the company’s fourth quarter. Pro forma loss for the quarter was $33 million. Openwave said it expects to report about the same in its next quarter.
The company also said South American carrier Telesp Celular will offer Openwave’s instant messaging products to its subscribers.
Separately, wireless data content provider InfoSpace Inc. reported a net loss of $5.2 million for its second quarter, news that sent its stock down about 15 percent to about 61 cents per share. The company offered hope for its wireless business, reporting growing numbers of subscribers and global usage. During the quarter, the company launched new services with Nextel Brazil, Rogers AT&T Wireless in Canada and others.
