Needham & Company Maintains a 'Hold' on Openwave Systems (OPWV); Lowering Estimates Following Weak JuneQ
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Price: $2.92 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Openwave Systems (NASDAQ: OPWV).
Needham analyst says, "The Openwave JuneQ (F4Q11) results were disappointing, and bookings were well below Street expectations. The company has announced a new restructuring program which will focus remaining resources around the “newer” assets based on the Integra platform, which has been out for over a year, but is now driving bookings (75% of F4Q bookings were newer products – recognized revenue from new products remains small). As part of the program, “legacy” products will be moved to maintenance mode and some offshore (Asia) development will be consolidated to Dublin. Sales resources will be reduced, and channel partners will be relied upon more heavily. In all, OPWV expects to lower headcount by 18-20%, effective by the DecQ, thereby reducing FY12 opex 30% y/y vs. FY11. With such dramatic changes to the infrastructure of sales, R&D and other functions, we believe a top line revenue recovery is several quarters away, and we anticipate a flattish revenue run rate of approximately $31m for the near future. As such we are lowering FY12 estimates materially; we introduce FY13 with modest 6% revenue growth."
For more ratings news on Openwave Systems click here and for the rating history of Openwave Systems click here.
Shares of Openwave Systems closed at $2.21 yesterday.
Needham analyst says, "The Openwave JuneQ (F4Q11) results were disappointing, and bookings were well below Street expectations. The company has announced a new restructuring program which will focus remaining resources around the “newer” assets based on the Integra platform, which has been out for over a year, but is now driving bookings (75% of F4Q bookings were newer products – recognized revenue from new products remains small). As part of the program, “legacy” products will be moved to maintenance mode and some offshore (Asia) development will be consolidated to Dublin. Sales resources will be reduced, and channel partners will be relied upon more heavily. In all, OPWV expects to lower headcount by 18-20%, effective by the DecQ, thereby reducing FY12 opex 30% y/y vs. FY11. With such dramatic changes to the infrastructure of sales, R&D and other functions, we believe a top line revenue recovery is several quarters away, and we anticipate a flattish revenue run rate of approximately $31m for the near future. As such we are lowering FY12 estimates materially; we introduce FY13 with modest 6% revenue growth."
For more ratings news on Openwave Systems click here and for the rating history of Openwave Systems click here.
Shares of Openwave Systems closed at $2.21 yesterday.
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