November 3, 2011 / 9:50 PM / 7 years ago

UPDATE 1-Openwave shares jump on Microsoft patent deal

* Q1 adj EPS $0.11 vs est loss/shr $0.08

* Q1 rev $52.4 mln vs est $34.2 mln

* Reaches patent licensing agreement with Microsoft

* Shares jump 29 pct after market (Follows alerts)

Nov 3 (Reuters) - Software maker Openwave Systems Inc said Microsoft Corp became the first company to license its patent portfolio that include wireless and cloud patents, sending its shares up 29 percent in extended trade.

Openwave, which makes software that allows telecom network operators to give customers wireless access to a variety of data and applications, posted a quarterly profit defying expectations of a loss, helped by service and patents revenue growth.

The company, which has filed patent infringement complaints against Apple and Research In Motion , said it plans to invest in protecting its intellectual property.

July-September, net income was $2.6 million, or 3 cents a share, compared with $71,000, or breakeven, a year ago.

Excluding items, it posted a profit of 11 cents a share, while revenue jumped 26 percent to $52.4 million.

Revenue from patents jumped nearly four fold to $15 million.

Analysts expected a loss of 8 cents a share, on revenue of $34.2 million, according to Thomson Reuters I/B/E/S.

Shares of the company rose to $2.03 after hours. They closed at $1.57 on Thursday on Nasdaq. (Reporting by Soham Chatterjee in Bangalore; Editing by Sayantani Ghosh)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below