Openwave to Miss Second-Quarter Estimates, Plans Restructuring

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Shares of

Openwave

(OPWV)

were tumbling in the premarket session after the company said it was restructuring and wouldn't meet second-quarter forecasts.

The company said its first-quarter loss was $5.9 million, or 3 cents a share, on a pro forma basis, in line with lowered estimates but down from $19.2 million, or 11 cents a share, in the fourth quarter. Revenues were $117.2 million in the first quarter.

For the fiscal second quarter, Openwave expects revenues of $100 million, plus or minus 15%, and a pro forma loss of 6 cents to 19 cents a share. Analysts polled by First Call were expecting a break-even second quarter on revenues of about $123 million.

The company cited the "unprecedented uncertainty for the telecommunications market" for the restructuring, which reportedly includes job cuts. The company will record a charge of $35 million to $40 million in the second quarter on the actions.

In premarket trading on Instinet, the company's shares were down 23% at $6.90.