Needham & Company Maintains a 'Hold' on Openwave Systems (OPWV); Sale of Operating Units Remains In-Process
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Price: $2.92 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Needham & Company maintains a 'Hold' on Openwave Systems (NASDAQ: OPWV).
Analyst, Scott Zeller, said, "...Bookings of “core” OPWV at $20.4m were up q/q from $8.7m, which excludes the $15m Microsoft (Nasdaq: MSFT) IP patents deal in SeptQ; while bookings improved q/q, they remain well below Mar11’s $48m bookings level. We believe the core businesses at OPWV including Integra and Messaging remain on a flat to slightly down trajectory, and are eroding due to weak bookings. The recent re-org into three business units (mediation, messaging, IP licensing) may have improved execution in the past few months, and likely is beneficial to facilitate a “lift-out” of groups when (or if) the current sale of product operating units to focus purely on IP licensing is achieved. During the call, an announcement was made of the “location based services” group, which is small (roughly $12m annual rev run rate) being sold to Persistent Systems. We also recently saw the adoption of an OPWV shareholder rights plan to protect the NOLs of the company (roughly $1.6B) from hostile actions. In our view, shares are likely rangebound unless the IP licensing strategy suddenly becomes lucrative and consistent."
Needham lowers FY12 from $0.10 to (0.01) and FY13 from $0.07 to (0.08).
For an analyst ratings summary and ratings history on Openwave Systems click here. For more ratings news on Openwave Systems click here.
Shares of Openwave Systems closed at $2.09 yesterday.
Analyst, Scott Zeller, said, "...Bookings of “core” OPWV at $20.4m were up q/q from $8.7m, which excludes the $15m Microsoft (Nasdaq: MSFT) IP patents deal in SeptQ; while bookings improved q/q, they remain well below Mar11’s $48m bookings level. We believe the core businesses at OPWV including Integra and Messaging remain on a flat to slightly down trajectory, and are eroding due to weak bookings. The recent re-org into three business units (mediation, messaging, IP licensing) may have improved execution in the past few months, and likely is beneficial to facilitate a “lift-out” of groups when (or if) the current sale of product operating units to focus purely on IP licensing is achieved. During the call, an announcement was made of the “location based services” group, which is small (roughly $12m annual rev run rate) being sold to Persistent Systems. We also recently saw the adoption of an OPWV shareholder rights plan to protect the NOLs of the company (roughly $1.6B) from hostile actions. In our view, shares are likely rangebound unless the IP licensing strategy suddenly becomes lucrative and consistent."
Needham lowers FY12 from $0.10 to (0.01) and FY13 from $0.07 to (0.08).
For an analyst ratings summary and ratings history on Openwave Systems click here. For more ratings news on Openwave Systems click here.
Shares of Openwave Systems closed at $2.09 yesterday.
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