Openwave narrows loss, stock sinks

Shares of Openwave Systems Inc. continued to dissolve after the company posted quarterly revenue of $63 million, down 24% from the same period last year.
The buffeted mobile software developer narrowed its quarterly net loss from $24.5 million in 2006 to $14.1 million this year, thanks largely to reduced sales, administrative and research and development expenses. But Openwave reported a 41% drop in licensing revenue from the year-ago period and a 23% drop in services revenue.
“Our results today demonstrate that because of continued progress in our financial controls and increased operational efficiency, we are seeing significant improvement to our bottom line,” said CEO Robert Vrij. “The company’s loss per share on a non-GAAP basis has improved by nine cents over last quarter and 16 cents from two quarters ago.”
Investors were unimpressed, sending the stock to a 52-week low of $4.14 per share following the news. Shares rebounded slightly to $4.18 by mid-day, marking a 4% dip from yesterday’s close.