REDWOOD CITY, Calif.-Openwave Systems Inc., which sells wireless Internet and messaging software, reported new carrier sales along with third-quarter results showing declining losses and shrinking revenues. Openwave said it expects to report similar sluggish results in the coming quarter.
Telecom New Zealand and Taiwan Cellular Corp.-both of which currently license Openwave’s Mobile Access Gateway for WAP services-announced further licensing agreements with the company. Telecom New Zealand said it will use Openwave’s Multimedia Messaging Service Center, Download Manager and Mobile Instant Messaging products to offer multimedia and instant messaging services, as well as downloadable applications. Taiwan Cellular licensed Openwave’s MMSC and its Provisioning Manager.
In its quarterly earnings, Openwave reported revenues of $63.5 million, down from the $66.8 million the company reported in the previous quarter. Openwave’s net loss was $23.2 million, down from its $29.5 million in the previous quarter. Openwave said it expects to report similar results in the next quarter.
“Openwave executed amid challenging market conditions,” said Don Listwin, the company’s president and chief executive officer. “We have growing optimism about the market as wireless operators are increasing their focus on data strategies.”
In future quarters, Openwave said it will provide results as earnings before interest, taxes, depreciation and amortization, or EBITDA. Under such reporting, the company said it expects to release earnings between $6 million to $18 million for the quarter, instead of the net loss it would report using the Generally Accepted Accounting Principles standard. GAAP standards are the preferred method of reporting financial results in light of recent Wall Street scandals.
