& cplSiteName &

Openwave Puts Products Up for Sale

Ray Le Maistre
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

From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
CenturyLink: Let's Get Past SD-WAN Hype

6|23|17   |   04:02   |   (0) comments


Technology becomes a "shiny object" unless it's properly focused on solving business needs for enterprise customers, says Bill Grubbs, network solutions architect for CenturyLink. He explains to Light Reading why SD-WAN deployments have to be tailored to specific needs – and more.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
Upcoming Live Events
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Montcalm Marble Arch
November 1, 2017, The Montcalm Marble Arch
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
No Imagination: UK Chip Biz Goes Up for Sale
Iain Morris, News Editor, 6/22/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.