WASHINGTON (dpa-AFX) - Openwave Systems Inc. (OPWV) reported wider loss in the fourth-quarter, and a reduction of approximately 18% to 20% of the workforce.
Net loss widened to $8.0 million or $0.09 per share, from $2.9 million or $0.03 per share in the year ago quarter. On a non-GAAP basis, net loss was $8.3 million or $0.10 per share, compared with a net loss of $61,000, or breakeven per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined to $35.21 million from $43.62 million in the prior year quarter. Seven analysts had consensus revenue estimate of $39.68 million for the quarter.
In addition, the company announced a reduction of approximately 18% to 20% of the workforce. As part of the restructuring, the company intends to reduce its spending on legacy products and solutions that have been underperforming. The company said it expects to reduce annual Non-GAAP operating expenses by about 30%, or $30 - $32 million, on a year-over-year basis.
Openwave's Belfast division will undertake additional development work previously outsourced to offshore development centers. The spending on those centers will be reduced. Openwave also plans to reduce its direct-sales programs, shifting toward a multichannel sales approach.
The company expects the restructuring to have the following effects on Non-GAAP results in fiscal 2012: gross margins in the mid- to high-50 percentile in 2012; R&D expenses in fiscal 2012 to be approximately 20% of total revenue; sales and marketing expenses to be approximately 20% of total revenue; and G&A expenses to be approximately 10% of total revenue.
The company expects to recognize restructuring costs of approximately $6 million in the first quarter of fiscal 2012.
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