Great Elm Capital 8-K Openwave Reports Final Fiscal 2007 Second Quarter Results

Exhibit 99.1

OPENWAVE REPORTS FINAL FISCAL 2007 SECOND QUARTER RESULTS

Revenue and Earnings In-Line with Previously Announced Preliminary Results

REDWOOD CITY, Calif. – January 25, 2007 –Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced final financial results for its fiscal 2007 second quarter ended December 31, 2006. Revenues for the fiscal second quarter were $84.2 million, compared with $104.5 million in the same quarter in the preceding year and $91.5 million in the prior quarter ended September 30, 2006. The Company reported bookings of $119.7 million in the fiscal 2007 second quarter as compared with $81.4 million in the 2007 first fiscal quarter.

“We are pleased with the strong bookings during the quarter,” said David Peterschmidt, president and CEO of Openwave. “In the second half of fiscal 2007, we plan to continue to focus on bookings momentum, new product introductions, sales productivity improvement and tight expense control.”

On a GAAP basis, net loss for the second fiscal quarter ended December 31, 2006 was $15.8 million, or $0.17 per share, compared to net income of $8.4 million, or $0.11 per share, for the December quarter in the preceding year and a net loss of $24.5 million, or $0.27 per share in the prior quarter.

Net loss on a non-GAAP basis, which excludes amortization of intangibles, stock-based compensation, gain on sale of technology, impairment charges, acquisition-related costs and restructuring and related costs, for the second fiscal quarter ended December 31, 2006 was $2.5 million, or $0.03 per diluted share compared with net income of $19.3 million, or $0.22 per fully diluted share, during the December quarter of the prior year and a net loss of $0.5 million, or $0.01 per diluted share in the prior quarter. A reconciliation between net income (loss) on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

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Openwave Reports Final Fiscal 2007 Second Quarter Results Page 2

For further analysis of the quarter, you may listen to the replay of the conference call held on January 4, 2007 on Openwave’s website at: http://investor.Openwave.com/medialist.cfm. Openwave will not be holding a conference call today.

About Openwave Systems

Openwave Systems Inc. (Nasdaq: OPWV) is the leading independent provider of software solutions that ignite mobility for the communications and media industries. Openwave empowers its customers to rapidly transform their business by sparking new revenue streams and market opportunities, building loyal subscriber communities and reducing operational costs. Openwave’s broad range of IP-based handset-to-network solutions enable the rapid launch of information, communication and entertainment services across networks and devices and include handset software, content delivery, adaptive messaging, location, music and video services. Openwave is a global company headquartered in Redwood City, California. For more information please visit www.openwave.com.

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Openwave and the Openwave logo are trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

Cautionary Note Regarding Forward Looking Statements

This release contains forward-looking statements relating to expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave’s management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Openwave does not expect to, and disclaims any obligation to, update such statements. Openwave, however, reserves the right to update such statements or any portion thereof at any time for any reason.

In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of our current, new and potential customers, suppliers and strategic partners; (b) the ability to improve sales productivity; (c) the ability to continue to sell our existing products and enhancements; (d) the ability to develop and commercialize new products; (e) risks associated with the development and licensing of software generally, including potential delays in software development and technical difficulties that may be encountered in the development or use of our software; (f) increased global competition and pricing pressure on our products; (g) technological changes and developments; and (h) general risks of the Internet and wireless and wireline telecommunications sectors. For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, and any subsequently filed reports. All documents also are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system (EDGAR) atwww.sec.gov or from Openwave’s website at www.openwave.com.

For more information please contact:

Openwave Systems Inc.	Mike Bishop
Investor Relations	Vikki Herrera
investor@openwave.com	Public Relations
Tel: 650-480-4461	Vikki.Herrera@openwave.com
Openwave Systems Inc.	Tel: 650-480-6753

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED

(In thousands)

	December 31, 2006		June 30, 2006
Assets
Current Assets:
Cash, cash equivalents and short-term investments	$	393,067	$	431,851
Restricted cash		1,250		—
Accounts receivable, net		149,043		152,547
Prepaid and other current assets		24,893		18,564
Total current assets		568,253		602,962
Property and equipment, net		21,710		20,784
Long-term investments and restricted cash and investments		83,374		81,140
Deposits and other assets		10,229		9,169
Goodwill		152,254		148,807
Intangibles, net		53,833		55,727
Total assets	$	889,653	$	918,589
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	11,468	$	14,951
Accrued liabilities		73,458		59,077
Accrued restructuring costs		16,617		18,542
Deferred revenue		55,196		58,964
Total current liabilities		156,739		151,534
Accrued restructuring costs, less current portion		55,822		60,922
Deferred revenue, less current portion		7,245		6,814
Deferred rent obligations		1,306		1,055
Deferred tax liabilities, less current portion, net		7,046		11,417
Convertible subordinated notes, net		148,605		148,494
Total liabilities		376,763		380,236
Stockholders’ equity		512,890		538,353
Total liabilities and stockholders’ equity	$	889,653	$	918,589

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED

(In thousands, except per share data)

	Three Months Ended									Six Months Ended
	December 31, 2006			September 30, 2006			December 31, 2005			December 31, 2006			December 31, 2005
Revenues:
License	$	25,045		$	29,570		$	50,033		$	54,615		$	98,747
Maintenance and support		22,833			22,813			24,259			45,646			48,647
Services		25,990			25,301			28,282			51,291			50,208
Projects/ Systems		2,080			6,127			1,914			8,207			10,228
Content		8,212			7,640			—			15,852			—
Total revenues		84,160			91,451			104,488			175,611			207,830
Cost of revenues:
License		737			1,805			1,343			2,542			3,563
Maintenance and support		8,053			7,808			8,141			15,861			15,915
Services		19,522			19,976			19,351			39,498			36,039
Projects/ Systems		1,278			2,398			1,092			3,676			5,867
Content		3,307			3,955			—			7,262			—
Amortization of intangible assets		2,138			1,689			1,532			3,827			3,113
Total cost of revenues		35,035			37,631			31,459			72,666			64,497
Gross profit		49,125			53,820			73,029			102,945			143,333
Operating Expenses:
Research and development		19,554			20,317			21,186			39,871			45,341
Sales and marketing		26,392			27,557			28,978			53,949			58,484
General and administrative		17,736			16,406			17,392			34,142			35,055
Stock option review and related costs		750			5,492			—			6,242			—
Restructuring and other related costs		2,024			10,960			(1,370	)		12,984			6,905
Acquisition-related costs and amortization		3,353			2,948			714			6,301			1,428
Gain on sale of technology and other		—			(1,287	)		(3,250	)		(1,287	)		(7,549	)
Total operating expenses		69,809			82,393			63,650			152,202			139,664
Operating income (loss)		(20,684	)		(28,573	)		9,379			(49,257	)		3,669
Interest and other (expense), net		4,913			5,860			999			10,773			669
Impairment of non-marketable equity securities		—			—			(104	)		—			(104	)
Pretax income (loss)		(15,771	)		(22,713	)		10,274			(38,484	)		4,234
Income taxes		17			1,824			1,830			1,841			3,466
Net income (loss)	$	(15,788	)	$	(24,537	)	$	8,444		$	(40,325	)	$	768
Basic net income (loss) per share	$	(0.17	)	$	(0.27	)	$	0.11		$	(0.43	)	$	0.01
Diluted net income (loss) per share	$	(0.17	)	$	(0.27	)	$	0.11		$	(0.43	)	$	0.01
Shares used in basic net income (loss) per share		93,352			91,815			75,003			93,189			72,542
Shares used in diluted net income (loss) per share		93,352			91,815			79,433			93,189			77,224
Stock-based compensation by category:
Maintenance and support	$	423		$	182		$	605		$	605			1,006
Services		541			283			512			824			899
Research and development		684			585			2,116			1,269			4,144
Sales and marketing		2,233			2,678			4,203			4,911			8,768
General and administrative		2,664			1,978			3,875			4,642			6,698
	$	6,545		$	5,706		$	11,311		$	12,251		$	21,515

OPENWAVE SYSTEMS INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)

(In thousands, except per share data)

	Three Months Ended									Six Months Ended
	December 31, 2006			September 30, 2006			December 31, 2005			December 31, 2006			December 31, 2005
Reconciliation between GAAP and Non-GAAP net income (loss):
Net income (loss)	$	(15,788	)	$	(24,537	)	$	8,444		$	(40,325	)		768
Exclude:
Restructuring and other related costs		2,024			10,960			(1,370	)		12,984			6,905
Acquisition-related costs and amortization*		5,491			4,637			2,741			10,128			5,213
Amortization of stock-based compensation		6,545			5,706			11,311			12,251			21,515
Stock option review and related costs		750			5,492			—			6,242			—
Gain on sales of technology		—			(1,287	)		(3,250	)		(1,287	)		(7,549	)
Impairment of non-marketable equity securities		—			—			104			—			104
Interest expense on convertible debt, if dilutive***		—			—			1,283			—			2,565
Tax impact of reconciling items**		(1,488	)		(1,488	)		—			(2,976	)		—
Fully diluted non-GAAP net income (loss) per share	$	(2,466	)	$	(517	)	$	19,263		$	(2,983	)	$	29,521
GAAP net income (loss) per share – diluted	$	(0.17	)	$	(0.27	)	$	0.10		$	(0.43	)	$	0.01
Exclude:
Restructuring and other related costs	$	0.02		$	0.12		$	(0.02	)	$	0.14		$	0.08
Acquisition-related costs and amortization*	$	0.06		$	0.05		$	0.03		$	0.11		$	0.06
Amortization of stock-based compensation	$	0.07		$	0.06		$	0.13		$	0.13		$	0.26
Stock option review and related costs	$	0.01		$	0.06		$	—		$	0.07		$	—
Gain on sales of technology	$	—		$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.09	)
Impairment of non-marketable equity securities	$	—		$	—		$	—		$	—		$	—
Interest expense on convertible debt, if dilutive***	$	—		$	—		$	0.01		$	—		$	0.03
Tax impact of reconciling items**	$	(0.02	)	$	(0.02	)	$	—		$	(0.04	)	$	—
Non-GAAP net income (loss) per share – diluted	$	(0.03	)	$	(0.01	)	$	0.22		$	(0.03	)	$	0.35
Shares used in computing fully diluted earnings per share		93,352			91,815			87,587			93,189			85,378

* Acquisition-related costs relates to payments due under the terms of the Musiwave and Solomio acquisitions. Also includes $495 and $672 thousand of acquisition-related hedging costs in the three and six months ended December 31, 2005. Amortization relates to acquired intangible assets.

** Beginning in FY Q3 2006 with the Musiwave acquisition, the tax impact of reconciling items became material and therefore will be included in the non-GAAP reconciliation prospectively. The tax impact relates to amortization of acquisition-related intangibles and tax benefits related to stock-based compensation.

*** The associated interest expense and convertible shares are included if the result is dilutive to net income per share.

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED

(in thousands)

	Three Months Ended									Six Months Ended
	December 31, 2006			September 30, 2006			December 31, 2005			December 31, 2006			December 31, 2005
Cash flows from operating activities:
Net income (loss)	$	(15,788	)	$	(24,537	)	$	8,444		$	(40,325	)	$	768
Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities:
Depreciation, amortization of intangibles and stock-based compensation		13,896			12,608			15,892			26,504			30,861
Noncash restructuring charges		1,687			2,471			—			4,158			414
Provision for doubtful accounts		1,978			—			26			1,978			718
Other non-cash expenses, net		(1,466	)		(2,348	)		(644	)		(3,814	)		(812	)
Proceeds from sale of technology and other		—			(1,287	)		(3,250	)		(1,287	)		(7,549	)
Changes in operating assets and liabilities, net of effect of acquisitions		(16,178	)		7,959			(11,511	)		(8,219	)		(18,449	)
Net cash (used for) provided by operating activities		(15,871	)		(5,134	)		8,957			(21,005	)		5,951
Cash flows from investing activities:
Purchases of property and equipment, net		(3,152	)		(4,655	)		(2,686	)		(7,807	)		(6,005	)
Acquisition, net of cash paid		(8,532	)		—			—			(8,532	)		—
Proceeds from sale of technology and other		—			1,287			3,250			1,287			7,549
Proceeds (purchases) of investments, net		49,355			(17,997	)		(129,734	)		31,358			(141,948	)
Restricted cash and investments, and non-marketable securities		(863	)		2,045			—			1,182			2,116
Net cash (used for) provided by investing activities		36,808			(19,320	)		(129,170	)		17,488			(138,288	)
Cash flows from financing activities:
Payment on note payable		(305	)		—			—			(305	)		—
Net proceeds from issuance of common stock		(817	)		25			285,348			(792	)		299,587
Cash (used for) provided by financing activities		(1,122	)		25			285,348			(1,097	)		299,587
Effect of exchange rates on cash and cash equivalents		99			21			—			120			—
Net increase (decrease) in cash and cash equivalents		19,914			(24,408	)		165,135			(4,494	)		167,250
Cash and cash equivalents at beginning of period		151,023			175,431			128,577			175,431			126,462
Cash and cash equivalents at end of period	$	170,937		$	151,023		$	293,712		$	170,937		$	293,712