Openwave quarterly results beat analyst views

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REDWOOD CITY, Calif. (AP) ? Openwave Systems Inc. on Thursday reported fiscal first-quarter results that beat analyst expectations as revenue climbed 49 percent.

Shares of the company, which also announced its first patent licensing deal with Microsoft Corp., soared more than 30 percent in after-hours trading.

For the July-September quarter, Openwave earned $2.6 million, or 3 cents per share, compared with $71,000, or break even on a per-share basis, a year earlier.

Excluding one-time items, the company earned 11 cents per share. Analysts surveyed by FactSet expected a loss of 8 cents per share.

Revenue rose to $52.4 million from $41.5 million. Analysts expected $34.2 million in revenue.

Openwave offers software that helps communication services companies send data over wireless networks.

The company said Thursday that it reached an agreement with Microsoft Corp. under which the world’s largest software maker will license Openwave’s patent portfolio. The portfolio includes 200 patents related to smart device and cloud technologies and other technologies as well.

In a statement, Openwave CEO Mike Mulica called the company’s results “mixed.” He said Openwave showed the strength of its intellectual property by getting the Microsoft deal, but is “clearly disappointed” with its product bookings, which totaled $23.7 million and included the company’s agreement with Microsoft.

Openwave shares rose 53 cents, or 34 percent, to $2.07 in after-hours trading. The stock finished regular trading up 2 cents at $1.57.