Was Openwave's Q3 Really In-Line?

Forbes.com writes that after Openwave Systems (nasdaq: OPWV) reported third-quarter results last week, "analysts disagreed on the outlook for the telecommunications software provider."

Piper Jaffray's T. Michael Walkley said, "We believe management has several potential system deal projects, and we expect continued solid booking and revenue growth trends." He thought "increased business with Cingular as a positive for growth in the long term."

RBC Capital Markets analyst Abramsky was more pessimistic. He believed that "despite Openwave's reported earnings per share of 21 cents for the quarter, when adjusted for higher income investment and a lower tax rate, the company's actual earnings-per-share figure is more like 18 cents per share, missing his estimate of 20 cents per share." He said, "We believe legacy growth is slowing," with "the company's maintenance and deferred revenues on the decline, as well as weakness in Europe, the Middle East and Africa."