AI
OPWV $18.50~$21 , beats by $0.04, guides higher for Q3 (OPWV) 18.54 : Reports Q2 (Dec) earnings of $0.22 per share, $0.04 better than the Reuters Estimates consensus of $0.18; revenues rose 11.8% year/year to $104.5 mln vs the $104.6 mln consensus. OPWV reports prof service revs of $30.2 vs $22.0 mln street expectation. Co issues upside guidance for Q3, sees EPS of $0.18-$0.20 vs. $0.18 consensus; sees Q3 revs of $110-$113 vs. $110.49 mln consensus.
Openwave tgt upped to $25 at WR Hambrecht (OPWV) 18.54 : Hambrecht raised their tgt for OPWV to $25 from $24, which represents 22x their new CY:07 EPS est of $1.12. This multiple is more or less in line with the peer group, despite the co's higher earnings growth profile (+23%) in 2007. They believe investors will be happy with the improvement in cash flow due to better collections effort, margin expansion above expectations, and significant deal signings during the qtr which indicate that mgmt's vision of offering an integrated application solution is gaining traction with customers. These positive developments support their view that underlying fundamentals will continue to improve in 2006, leading to multiple expansion and further share price appreciation.
Openwave Systems call summary (OPWV) 18.54 : Co talks up MusiWave acquisition, says it's driving synergies between the cos. Op expenses to rise $2-$3 mln in F Q3, which includes MusiWave; co says MusiWave will be neutral to slightly negative in fiscal Q3, neutral to slightly positive in FQ4, then will start to add to margins. For fiscal Q3, co says it expects an additional silicon design win; also co expects to roll out its first-integrated end-to-end service w/ Midas and MusiWave. Co says it expects to get MusiWave op margins to 15-20% eventually, in line w/ the cos' overall target. Co makes clear to analysts that it expects $40-45 mln in revs from MusiWave this yr; guidance for current qtr was only $5-$6 mln. Analysts want to know why so little at the start. Co notes that it only has MusiWave for about 80% of the qtr, but acknowledges that it's being conservative w/ the MusiWave contribution in the beginning. OPWV makes clear that it expects to have a large systems deal by fiscal Q4 of '06 (co seems to imply that it's guiding for FQ4, but it could possibly come sooner). OPWV clarifies that it plans to cut D.S.O by 10 days a qtr for the next 4 qtrs (co stepping up collections). Stock rises $1.01 to $19.55 after hrs.
Openwave tgt upped to $25 at WR Hambrecht (OPWV) 18.54 : Hambrecht raised their tgt for OPWV to $25 from $24, which represents 22x their new CY:07 EPS est of $1.12. This multiple is more or less in line with the peer group, despite the co's higher earnings growth profile (+23%) in 2007. They believe investors will be happy with the improvement in cash flow due to better collections effort, margin expansion above expectations, and significant deal signings during the qtr which indicate that mgmt's vision of offering an integrated application solution is gaining traction with customers. These positive developments support their view that underlying fundamentals will continue to improve in 2006, leading to multiple expansion and further share price appreciation.
Openwave Systems call summary (OPWV) 18.54 : Co talks up MusiWave acquisition, says it's driving synergies between the cos. Op expenses to rise $2-$3 mln in F Q3, which includes MusiWave; co says MusiWave will be neutral to slightly negative in fiscal Q3, neutral to slightly positive in FQ4, then will start to add to margins. For fiscal Q3, co says it expects an additional silicon design win; also co expects to roll out its first-integrated end-to-end service w/ Midas and MusiWave. Co says it expects to get MusiWave op margins to 15-20% eventually, in line w/ the cos' overall target. Co makes clear to analysts that it expects $40-45 mln in revs from MusiWave this yr; guidance for current qtr was only $5-$6 mln. Analysts want to know why so little at the start. Co notes that it only has MusiWave for about 80% of the qtr, but acknowledges that it's being conservative w/ the MusiWave contribution in the beginning. OPWV makes clear that it expects to have a large systems deal by fiscal Q4 of '06 (co seems to imply that it's guiding for FQ4, but it could possibly come sooner). OPWV clarifies that it plans to cut D.S.O by 10 days a qtr for the next 4 qtrs (co stepping up collections). Stock rises $1.01 to $19.55 after hrs.
Know how to make God laugh?
Tell Her your plans ....
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
