 |
OpenwavePosted by Randy on: 2005-10-28 08:03:50 in category:
Investments [ Print | Permalink / 0 Comment(s) ] October 28, 2005 Openwave (Opwv) $17.30 First Quarter 2006 This was there best quarter in license revenues their core business Weakness occurred in low margin systems business it looks like the integration into the Qualcomm chips is about over, and now Qualcomm business will be in the high margin side. In the Performa accounting operation margin was in double digits just above 10% this was a substantial improvement The company seem to be hitting their goals all their goals both top and bottom. It appear to me the new leadership is also focused it managing wall streets expectations this lets me to believe their setting goal that has a higher probability if achieving. Book to bill well about 1.1 â??1 Backlog is has grown nicely but booking did decline in the quarter. Sprint Nextel about 24% of revenues a possible problem going forward For next quarter the companies forecasting 18-20 cents in next quarter 15% operating profit â??Clearly inline to meet or exceed established targetsâ?? source Openwave For colander year 2006 Openwave is forecasting 15-20% revenue growth for next year. Music Wave will have about $40 million in revenues will all be over and above the their organic forecast 80c to $1.00 per share in earnings System deals most quarters Comments MVNO market is a simple word for outsources sell phones, for example Virgin and Quest brands use a sprint-based infrastructure. The MVNO market is the fist tangible sign that OPWV possibly has a superior position in this market. The MVNO market due to great complexity the brands needs a system wide platform almost from day one. This is where Openwave and their system wide solution could possibly dominate, it will be important to see if they can keep this very high market share, currently around 85% in the Americas. The MVNO is a fast growing market in the Americas but is slow to take off with the rest of the world When you review some of are past writing available at http://www.durig.com have held the oppion that Openwave has the best position in Mobil data from a software point, and that when new products begin to take shape like MVNO and Music Wave that Openwave will be able to bundle and or provide the addition solution set where many of their competitors are using the new product to enter the market. We believe in many cases it will be easier for Openwave to add additional services such as music to existing client especially if they can integrate the look and fell to their existing platform especially with a large complex carrier. On the disappointing side with so many strengths it still appears that Openwave is still growing at a rate slower that the overall market is growing, this is telling me that Openwave is still missing opportunities. The company appears to be gaining economies of scale. In the Mobil data market place. The companies that could attain and utilize advantages such as economies of scale usual in my opinion out perform their peers. With the MVNO and now with Music Wave they could possibly show their advantages. Randy Durig currently owns Openwave and holds it in his monopoly technology portfolio Past performance is not a guarantee for future returns. Durig Capital LLC may only do business if registered in your state. Durig Capital is a registered investment advisor. You can contact us at toll free 971-732-5119 or http://www.durig.com Please see new announcement about Durig and Ameritrade athttp://www.durig.com/ameritrade Durig Capital National Performance Rankings: #7 U.S. Equity, Large Capitalization Blend, Ranked by 3 year annualized returns, 2nd Quarter 2005, By Money Manager Review #3 U.S. Equity, Large Capitalization Blend, Ranked by 1 year annual returns, 1st Quarter 2005, By Money Manager Review #2 U.S. Equity, Large Capitalization Blend, Ranked by 1 year annual return 4th Quarhttp://www. .com[/url]ter 2004, By Money Manager Review Homepage For personal help planning for your retirement http://www.retirement-plan.us For web information about planning your retirement. http://www.retirement-retirement.com/category-20.php |
|
Post new CommentThis site does not allow anonymous comments. Registered members can login to participate. Registration is free and takes only a few seconds |
|