Great Elm Capital 8-K Openwave Reports First Quarter Fiscal 2011 Financial Results

Exhibit 99.1

OPENWAVE REPORTS FIRST QUARTER FISCAL 2011 FINANCIAL RESULTS

REDWOOD CITY, CA – October 28, 2010 – Openwave Systems Inc. (Nasdaq: OPWV), a global software innovator delivering context-aware mediation and messaging solutions, today announced that revenues for the first fiscal quarter ended September 30, 2010 were $41.5 million, compared with $43.6 million in the prior quarter ended June 30, 2010 and $49.8 million in the September quarter in the preceding fiscal year. Bookings for the first quarter of fiscal 2011 were $42.4 million. The company ended the quarter with $117.5 million in cash and investments.

“We continue to build a market leadership position in mobile software infrastructure for traffic and data management, as well as ecosystem monetization,” said Ken Denman, CEO of Openwave. “The investments in innovation through our research and development efforts are coming to fruition, as evidenced by the validation of the Integra platform, the initial traction of the trial program, and Sprint’s recently announced browser-based ecosystem powered by Openwave. We also commenced our intellectual property monetization program, which we expect will bring further value to the business.”

On a GAAP basis, net income for the first fiscal quarter ended September 30, 2010 was $71,000 or $0.00 per share, compared with a net loss of $2.9 million, or $0.03 per share, in the prior quarter and net income of $990,000, or $0.01 per share, in the September quarter in the preceding year.

On a non-GAAP basis, net loss for the first fiscal quarter ended September 30, 2010 was $419,000 or $0.00 per share, compared with a net loss of $61,000 or $0.00 per share, in the prior quarter and a net loss of $380,000, or $0.00 per share, during the September quarter of the prior year. Non-GAAP net loss excludes restructuring, impairments on investments, amortization of intangibles and stock-based compensation, amounts associated with certain unusual events, discontinued operations, certain losses on investments and the tax impact of these items.

A reconciliation between net income (loss) and net income (loss) per share on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Non-GAAP Measure

The company’s stated results include the non-GAAP measures: non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP measures exclude certain items that generally are non-recurring events or are non-cash items that many other companies exclude, in order to compare Openwave with other companies, such as stock-based compensation and amortization of intangibles. These non-GAAP measures also exclude items which management does not consider in evaluating Openwave’s on-going business, such as restructuring costs, impairments on investments, and discontinued operations. Openwave considers non-GAAP net income (loss) to be an important measure because it provides a useful measure of the operational performance of Openwave and is used by Openwave’s management for that purpose. In addition, investors often use measures such as these to evaluate the financial performance of a company. These non-GAAP measures are presented for supplemental informational purposes only for understanding Openwave’s operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

Conference Call Information

Openwave has scheduled a conference call for 5:00 p.m. eastern daylight time today to discuss its financial results for its first quarter ended September 30, 2010. Interested parties may access the conference call over the Internet through Openwave’s website at www.openwave.com or by telephone at (877) 941-1427 or (480) 629-9664 (international). A replay of the conference call will be available for two weeks beginning at approximately 8:00 p.m. eastern daylight time today by calling 800-406-7325. The replay can be accessed internationally by calling 303-590-3030. Reservation number: 4373937.

A live webcast of the call, together with supplemental financial information, will also be available on the Earnings & Metrics section of Openwave’s website at http://investor.Openwave.com. A replay will be available on the website for at least three months.

About Openwave Systems

Openwave Systems Inc. (Nasdaq: OPWV) is a global software innovator delivering context-aware mediation and messaging solutions that enable communication service providers and the broader ecosystem to create and deliver smarter services.

Building on its mobile data heritage, Openwave mobilizes the Internet with predictive solutions fueled by real-time analytics that mediate among different ecosystem elements, permitting the enhancement of every mode of IP traffic. The result can provide customers with a 360-degree view of their network, devices and services, and enables them to proactively optimize network resources, quickly launch smart mobile services, and provide a contextually relevant user experience.

Openwave is a global company with a blue chip customer base spanning North America, Latin America, Australia and New Zealand, Asia, Africa, Europe, and the Middle East. Openwave is headquartered in Redwood City, California. For more information please visit www.openwave.com.

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

The statements in this press release in Mr. Denman’s quote with respect to future events or expectations are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1943 and Section 27A of the Securities Act of 1933. These forward-looking statements are subject to many risks and uncertainties that could cause actual results to differ materially from those projected. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Openwave assumes no obligation to update the forward-looking statements included in this press release.

In particular, the following factors, among others, could cause actual results to differ materially from those projected: (a) the current economic climate may impede the growth of wireless data demand, which could impede customer trials and the ability of Openwave to monetize its intellectual property portfolio; and (b) Openwave may not be able to make changes in business strategy, development plans and product offerings to respond to any changes in wireless demand needs of its customers.

For a detailed discussion of these and other factors that may cause these forward looking statements not to come true, please refer to the risk factors discussed in the Openwave’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010. These documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave’s website at www.openwave.com.

For More Information: Investor Relations Mike Bishop The Blueshirt Group mike@blueshirtgroup.com Tel: 415-217-4968 Public Relations Vikki Herrera Openwave Systems Inc. vikki.Herrera@openwave.com Tel: 650-480-6753

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED

(In thousands)

	September 30,		June 30,
	2010		2010
Assets
Current Assets:
Cash, cash equivalents and short-term investments	$	105,681	$	106,146
Accounts receivable, net		33,756		31,160
Prepaid and other current assets		19,265		18,018
Total current assets		158,702		155,324
Property and equipment, net		8,051		8,365
Long-term investments and restricted cash and investments		11,801		13,222
Deposits and other assets		8,725		9,231
Goodwill		267		267
Intangible assets, net		1,780		2,200
Total assets	$	189,326	$	188,609
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	4,961	$	4,658
Accrued liabilities		20,296		20,584
Accrued restructuring costs		14,545		15,128
Deferred revenue		37,932		35,132
Total current liabilities		77,734		75,502
Accrued restructuring costs, less current portion		21,330		23,820
Deferred revenue, less current portion		11,698		11,800
Deferred rent obligations and long-term taxes payable		4,917		4,728
Total liabilities		115,679		115,850
Stockholders’ equity		73,647		72,759
Total liabilities and stockholders’ equity	$	189,326	$	188,609

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED

(In thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
	2010			2010			2009
Revenues:
License	$	12,332		$	15,684		$	10,425
Maintenance and support		13,993			14,993			15,798
Services		11,203			12,940			23,619
Patents		4,000			—			—
Total revenues		41,528			43,617			49,842
Cost of revenues:
License		30			121			230
Maintenance and support		4,141			4,636			4,316
Services		8,887			9,506			17,773
Amortization of intangible assets		420			420			420
Total cost of revenues		13,478			14,683			22,739
Gross profit		28,050			28,934			27,103
Operating Expenses:
Research and development		11,430			10,835			9,864
Sales and marketing		10,821			10,303			10,711
General and administrative		6,612			7,917			7,925
Restructuring and other related costs		708			1,374			422
Total operating expenses		29,571			30,429			28,922
Operating loss from continuing operations		(1,521	)		(1,495	)		(1,819	)
Interest and other income (expense), net		37			(70	)		(1,209	)
Pre-tax loss from continuing operations		(1,484	)		(1,565	)		(3,028	)
Income taxes		681			1,294			498
Net loss from continuing operations		(2,165	)		(2,859	)		(3,526	)
Gain on sale of discontinued operations, net of tax		2,236			—			4,516
Net income (loss)	$	71		$	(2,859	)	$	990
Basic and Diluted net income (loss) per share from:
Continuing operations	$	(0.03	)	$	(0.03	)	$	(0.04	)
Discontinued operations		0.03			—			0.05
Net income (loss) per share	$	—		$	(0.03	)	$	0.01
Shares used in basic and diluted net income (loss) per share		84,017			83,740			83,295
Stock-based compensation by category:
Maintenance and support	$	45		$	28		$	38
Services		59			40			76
Research and development		131			95			98
Sales and marketing		156			121			146
General and administrative		270			204			189
	$	661		$	488		$	547

OPENWAVE SYSTEMS INC.

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

(In thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
	2010			2010			2009
Reconciliation between GAAP and Non-GAAP net income (loss):
Net income (loss)	$	71		$	(2,859	)	$	990
Exclude:
Restructuring costs		708			1,374			422
Amortization of intangibles		420			420			420
Stock-based compensation		661			488			547
Amounts associated with unusual events(a)		—			557			344
Discontinued operations, net		(2,236	)		—			(4,516	)
Other-than-temporary impairments of investments		—			—			1,464
Tax impact of reconciling items(b)		(43	)		(41	)		(51	)
Non-GAAP net loss	$	(419	)	$	(61	)	$	(380	)
Diluted GAAP net income (loss) per share	$	—		$	(0.03	)	$	0.01
Exclude:
Restructuring costs	$	0.01		$	0.02		$	—
Amortization of intangibles	$	0.01		$	—		$	0.01
Stock-based compensation	$	0.01		$	—		$	0.01
Amounts associated with unusual events(a)	$	—		$	0.01		$	—
Discontinued operations, net	$	(0.03	)	$	—		$	(0.05	)
Other-than-temporary impairments of investments	$	—		$	—		$	0.02
Tax impact of reconciling items(b)	$	—		$	—		$	—
Diluted non-GAAP net income per share	$	—		$	—		$	—
Shares used in computing diluted earnings per share		84,017			83,740			83,295

(a) Relates to legal fees regarding lawsuits and other unusual events, net of insurance reimbursements.

(b) The tax impact relates to tax benefits related to amortization of intangibles and stock-based compensation.

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-UNAUDITED

(in thousands)

	Three Months Ended
	September 30,			June 30,			September 30,
	2010			2010			2009
Operating activities:
Net income (loss)	$	71		$	(2,859	)	$	990
Gain on sale of discontinued operation		(2,236	)		—			(4,516	)
Reconciling items:
Depreciation, amortization of intangibles and stock-based compensation		2,327			2,106			2,448
Non-cash restructuring charges		315			337			391
Provision for (recovery of) doubtful accounts		(185	)		395			31
Other non-cash items, net		346			376			64
Other-than-temporary impairments of investments		—			—			1,464
Changes in operating assets and liabilities		(3,503	)		(3,647	)		(9,661	)
Net cash used for operating activities		(2,865	)		(3,292	)		(8,789	)
Investing activities:
Purchases of property and equipment, net		(1,066	)		(1,166	)		(607	)
Sale of discontinued operation, net		2,236			—			4,516
Proceeds of investments, net		976			4,902			(700	)
Maturities of restricted cash and investments, net		—			—			419
Net cash provided by investing activities		2,146			3,736			3,628
Financing activities:
Net proceeds from issuance of common stock		70			645			81
Cash provided by financing activities		70			645			81
Net increase (decrease) in cash and cash equivalents		(649	)		1,089			(5,080	)
Cash and cash equivalents at beginning of period		60,935			59,846			91,545
Cash and cash equivalents at end of period, including discontinued operations	$	60,286		$	60,935		$	86,465