Wireless Internet software provider Openwave Systems Inc. announced it could further its acquisition push with a new offering of $100 million in convertible subordinated notes due 2008. The company said it has no definite acquisition or investment plans. Openwave said it would use the proceeds from the offering primarily for additional working capital and other general corporate purposes. Investors seemed to be cautious of the move, sending the company’s stock down in trading immediately after the news. Openwave’s stock recovered in trading later in the day to about $5.48 per share. Openwave said it will use a portion of the net proceeds to purchase a portfolio of U.S. government securities that will be pledged to secure the payment of the first six scheduled interest payments on the notes.
Wireless messaging and IT consultancy company LogicaCMG announced its interim results, showing declining revenues of $1.3 billion and an operating profit of $73 million. The company asserted its reorganization is almost complete, and its wireless networks division will be profitable for the full year. “Against a challenging economic background, our first six months as a merged company have exceeded our original expectations,” said Martin Reed, LogicaCMG’s group chief executive. The wireless messaging division of LogicaCMG counted eight multimedia messaging service center wins in the first half of the year. The company counted MMS customers in Germany, Malta, the Philippines, India, Ireland, Russia and Bulgaria. LogicaCMG most recently announced an MMS win in the United States with Dobson Communications.
UTStarcom Inc. said it has signed a contract valued at approximately $80 million with China Telecom Corp. to deploy its IP-based PAS equipment in the Jiangsu province of China. “Although competition in Jiangsu’s PAS market is fierce, UTStarcom commands the dominant position with deployments in seven of the 13 major cities in the province, including Suzhou, a city of almost 6 million people and one of the most affluent in the area,” said Ying Wu, chief executive officer of UTStarcom China.
