REDWOOD CITY, Calif.-Wireless Internet technology vendor Openwave Systems Inc. reported increasing revenues and a decreasing net loss and said it will continue its positive trend in the coming months.
The news sent the company stock up about 7 percent to about $17.15 per share.
Openwave said its revenues for its second quarter were $71.8 million, an increase from the $68 million it scored during the preceding quarter. The company’s net loss clocked in at $9.4 million or 15 cents per basic and diluted share, compared with a net loss of $14 million or 23 cents per basic and diluted share for the previous quarter.
Openwave said it expects revenues in the coming quarter will be about $70 million, and that its net loss per basic and diluted share will be between 7 cents and 22 cents per share.
The news served to inspire some analysts, with RBC Capital Markets upgrading Openwave’s stocks.
“With better handsets and improved data offerings on the horizon, we believe demand for Openwave’s products will grow over the next few years,” RBC wrote in a research note. “We remain cautious due to continued competition from larger OEMs such as Nokia and Ericsson. However, in our opinion, picture messaging, MMS and other applications could improve longer-run revenue streams for Openwave, particularly as carriers continue working through excess gateway licensing capacity.”
