Light Reading

Openwave Puts Products Up for Sale

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-chief
1/12/2012
50%
50%

Following a year of financial toil and a change in management, Openwave Systems Inc. (Nasdaq: OPWV) has decided to quit the messaging and mediation products markets and focus all its efforts on its patent portfolio.

The company announced Thursday that it is has hired Jefferies & Co. Inc. to find buyers for its product lines and will focus on driving revenues from its intellectual property in an effort to become profitable again.

The company notes on its website that it "established many of the foundational patents that allow mobile devices to connect to the Internet," and that it has "approximately 200 patents covering many innovations spanning smart devices, cloud technologies and unified messaging."

The move comes after a tough 2011 for the mobile Service Provider Information Technology (SPIT) specialist, during which the company reported mounting losses, cut staff and appointed a new CEO. (See More Turmoil at Openwave, Openwave Cuts Staff as Losses Mount and Openwave Names New CEO.)

Shortly after Mike Mulica took over as CEO in October the company hired two experienced intellectual property specialists to head up its IP patent portfolio business. (See Openwave Hires Patent Experts.)

Investors appear to like the move, as Openwave's share price is up nearly 7 percent to $1.89 in pre-market trading Thursday morning.

Why this matters
Openwave was caught in a downward spiral. It had been trying to reinvent itself as an all-IP messaging and mediation system company for the mobile data market and had been positioning itself as a company that could help mobile operators with their data and video traffic optimization needs. But as 2011 progressed, rival Bytemobile Inc. gained momentum in that market while Openwave struggled. (See Waking Up to the Power of SPIT and Bytemobile Ekes Out More Capacity .)

The more focused strategy might save it from further years of product-related operating losses, but whether it can find a home for its product lines is another matter. The company says it will make announcements "as, and when, a specific transaction or transactions occur."

More immediately, Openwave's 440 or so staff and around 100 service provider customers will want to know what the company's changes mean for them.

Its strategy to capitalize on its patents might just work, though. The specialists it hired have a track record of generating hundreds of millions of dollars in IPR-related revenues at Good Technology Inc. and Openwave has already struck a license agreement with Microsoft Corp. (Nasdaq: MSFT) for its patent portfolio, giving it an impressive anchor customer.

It has also initiated action against Apple Inc. (Nasdaq: AAPL) and BlackBerry regarding patent infringement. (See Openwave Sues Apple & RIM.)

For more
Openwave isn't the only company looking to generate greater returns from its patent portfolio.

— Ray Le Maistre, International Managing Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:45:53 PM
re: Openwave Puts Products Up for Sale


Does anyone have a view on whether Openwave had the wrong strategy or the right one but poorly executed?


 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:45:52 PM
re: Openwave Puts Products Up for Sale


 


I think that the ISP business is hard.  Selling to ISPs is a like getting blood from a stone.


Think about this (since this is the business I am in)....how much do you pay for your residential spam filter.  How much do you think your ISP is willing to spend on it?


seven


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:45:51 PM
re: Openwave Puts Products Up for Sale


It seems like a hidden cost, so i have no sense on how much that is. As far as the plan goes, they could do well if they focus on licensing and litigation... at least no one can call them a patent troll since they did run a business based on its IP rather than buying the IP and then letting the lawsuits fly. JB

Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (8) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (1) comment


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Hot Topics
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones