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

EXHIBIT 99.1

OPENWAVE REPORTS SECOND QUARTER FISCAL 2011 FINANCIAL RESULTS

REDWOOD CITY, CA – Feb. 3, 2011 – Openwave Systems Inc. (Nasdaq: OPWV), a global software innovator delivering context-aware mediation and messaging solutions, today announced that revenues for the second fiscal quarter ended December 31, 2010 were $39.9 million, compared with $41.5 million in the prior quarter ended September 30, 2010 and $49.7 million in the December quarter in the preceding fiscal year. Bookings for the second quarter of fiscal 2011 were $40.2 million. The company ended the quarter with $113.4 million in cash and investments.

“Openwave’s next generation of products are garnering interest from both new and current customers,” said Ken Denman, CEO of Openwave. “In addition to Media Optimizer, we are seeing increasing interest in Passport, which helps operators improve the subscriber experience through better customer care and more personalized data plans. Given high interest in our platform and the robust pipeline, we expect to deliver several new product wins in the March quarter. At the same time we also expect continued new wins with our Email Mx – Stateless Edition.”

On a GAAP basis, net loss for the second fiscal quarter ended December 31, 2010 was $4.5 million or $0.05 per share, compared with a net income of $71,000, or $0.00 per share, in the prior quarter and net income of $213,000, or $0.00 per diluted share, in the December quarter in the preceding year.

On a non-GAAP basis, net loss for the second fiscal quarter ended December 31, 2010 was $2.7 million or $0.03 per share, compared with a net loss of $419,000 or $0.00 per share, in the prior quarter and a net income of $3.5 million, or $0.04 per diluted share, in the December quarter in the preceding 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 second quarter ended December 31, 2010. Interested parties may access the conference call over the Internet through Openwave’s website at www.openwave.com or by telephone at (877) 941-1428 or (480) 629-9665 (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: 4403708.

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 Paula Holland Openwave Systems Inc. Paula.Holland@openwave.com Tel: 650-480-5640

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS-UNAUDITED

(In thousands)

	December  31, 2010		June  30, 2010
Assets
Current Assets:
Cash, cash equivalents and short-term investments	$	99,479	$	106,146
Accounts receivable, net		22,627		31,160
Prepaid and other current assets		19,195		18,018
Total current assets		141,301		155,324
Property and equipment, net		7,873		8,365
Long-term investments and restricted cash and investments		13,876		13,222
Deposits and other assets		7,564		9,231
Goodwill		267		267
Intangible assets, net		1,371		2,200
Total assets	$	172,252	$	188,609
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	2,244	$	4,658
Accrued liabilities		21,258		20,584
Accrued restructuring costs		14,258		15,128
Deferred revenue		32,838		35,132
Total current liabilities		70,598		75,502
Accrued restructuring costs, less current portion		18,547		23,820
Deferred revenue, less current portion		7,887		11,800
Deferred rent obligations and long-term taxes payable		4,687		4,728
Total liabilities		101,719		115,850
Stockholders’ equity		70,533		72,759
Total liabilities and stockholders’ equity	$	172,252	$	188,609

OPENWAVE SYSTEMS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS-UNAUDITED

(In thousands, except per share data)

	Three Months Ended									Six Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2010			2010			2009			2010			2009
Revenues:
License	$	10,072		$	12,332		$	13,283		$	22,404		$	23,708
Maintenance and support		13,913			13,993			16,168			27,906			31,966
Services		15,925			11,203			20,291			27,128			43,910
Patents		1			4,000			—			4,001			—
Total revenues		39,911			41,528			49,742			81,439			99,584
Cost of revenues:
License		78			30			256			108			486
Maintenance and support		3,975			4,141			4,657			8,116			8,973
Services		11,594			8,887			15,075			20,481			32,848
Amortization of intangible assets		409			420			420			829			840
Total cost of revenues		16,056			13,478			20,408			29,534			43,147
Gross profit		23,855			28,050			29,334			51,905			56,437
Operating Expenses:
Research and development		10,439			11,430			9,667			21,869			19,531
Sales and marketing		11,357			10,821			11,052			22,178			21,763
General and administrative		5,457			6,612			6,710			12,069			14,635
Restructuring and other related costs		856			708			1,353			1,564			1,775
Total operating expenses		28,109			29,571			28,782			57,680			57,704
Operating income (loss) from continuing operations		(4,254	)		(1,521	)		552			(5,775	)		(1,267	)
Interest and other income (expense), net		210			37			(220	)		247			(1,429	)
Pre-tax income (loss) from continuing operations		(4,044	)		(1,484	)		332			(5,528	)		(2,696	)
Income taxes		491			681			119			1,172			617
Net income (loss) from continuing operations		(4,535	)		(2,165	)		213			(6,700	)		(3,313	)
Gain on sale of discontinued operations, net of tax		—			2,236			—			2,236			4,516
Net income (loss)	$	(4,535	)	$	71		$	213		$	(4,464	)	$	1,203
Basic net income (loss) per share from:
Continuing operations	$	(0.05	)	$	(0.03	)	$	—		$	(0.08	)	$	(0.04	)
Discontinued operations		—			0.03			—			0.03			0.05
Net income (loss) per share	$	(0.05	)	$	—		$	—		$	(0.05	)	$	0.01
Diluted net income (loss) per share from:
Continuing operations	$	(0.05	)	$	(0.03	)	$	—		$	(0.08	)	$	(0.04	)
Discontinued operations		—			0.03			—			0.03			0.05
Net income (loss) per share	$	(0.05	)	$	—		$	—		$	(0.05	)	$	0.01
Shares used in basic net income (loss) per share		84,324			84,017			83,408			84,170			83,352
Shares used in diluted net income (loss) per share		84,324			84,017			84,910			84,170			83,352
Stock-based compensation by category:
Maintenance and support	$	40		$	45		$	32		$	85		$	70
Services		46			59			36			105			112
Research and development		115			131			42			246			140
Sales and marketing		161			156			127			317			273
General and administrative		256			270			201			526			390
	$	618		$	661		$	438		$	1,279		$	985

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,			September 30,			December 31,			December 31,			December 31,
	2010			2010			2009			2010			2009
Reconciliation between GAAP and Non-GAAP net income (loss):
Net income (loss)	$	(4,535	)	$	71		$	213		$	(4,464	)	$	1,203
Exclude:
Restructuring costs		856			708			1,353			1,564			1,775
Amortization of intangibles		409			420			420			829			840
Stock-based compensation		618			661			438			1,279			985
Amounts associated with unusual events(a)		—			—			503			—			847
Discontinued operations, net		—			(2,236	)		—			(2,236	)		(4,516	)
Realized losses and other-than-temporary impairments of investments		—			—			651			—			2,115
Tax impact of reconciling items(b)		(47	)		(43	)		(51	)		(90	)		(102	)
Non-GAAP net income (loss)	$	(2,699	)	$	(419	)	$	3,527		$	(3,118	)	$	3,147
Diluted GAAP net income (loss) per share	$	(0.05	)	$	—		$	—		$	(0.05	)	$	0.01
Exclude:
Restructuring costs	$	0.01		$	0.01		$	0.01		$	0.02		$	0.01
Amortization of intangibles	$	—		$	0.01		$	—		$	0.01		$	0.01
Stock-based compensation	$	0.01		$	0.01		$	0.01		$	0.02		$	0.02
Amounts associated with unusual events(a)	$	—		$	—		$	0.01		$	—		$	0.01
Discontinued operations, net	$	—		$	(0.03	)	$	—		$	(0.03	)	$	(0.05	)
Other-than-temporary impairments of investments	$	—		$	—		$	0.01		$	—		$	0.03
Tax impact of reconciling items(b)	$	—		$	—		$	—		$	(0.01	)	$	—
Diluted non-GAAP net income (loss) per share	$	(0.03	)	$	—		$	0.04		$	(0.04	)	$	0.04
Shares used in computing diluted earnings per share		84,324			84,017			84,910			84,170			83,352

(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									Six Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2010			2010			2009			2010			2009
Operating activities:
Net income (loss)	$	(4,535	)	$	71			213		$	(4,464	)	$	1,203
Gain on sale of discontinued operations		—			(2,236	)		—			(2,236	)		(4,516	)
Reconciling items:
Depreciation, amortization of intangibles and stock-based compensation		2,335			2,327			2,361			4,662			4,809
Non-cash restructuring charges		290			315			369			605			760
Accelerated depreciation on restructured property and equipment		—			—			181			—			181
Recovery of doubtful accounts		(28	)		(185	)		(350	)		(213	)		(319	)
Other non-cash items, net		339			346			1,126			685			1,213
Realized losses and other-than-temporary impairments of investments		—			—			651			—			2,036
Changes in operating assets and liabilities		(1,422	)		(3,503	)		1,715			(4,925	)		(7,890	)
Net cash provided by (used for) operating activities		(3,021	)		(2,865	)		6,266			(5,886	)		(2,523	)
Investing activities:
Purchases of property and equipment, net		(1,569	)		(1,066	)		(314	)		(2,635	)		(921	)
Sale of discontinued operations, net		—			2,236			—			2,236			4,516
Proceeds of investments, net		(1,123	)		976			(20,728	)		(147	)		(21,428	)
Maturities of restricted cash and investments, net		216			—			(10	)		216			409
Net cash provided by (used for) investing activities		(2,476	)		2,146			(21,052	)		(330	)		(17,424	)
Financing activities:
Net proceeds from issuance of common stock		752			70			169			822			250
Cash provided by financing activities		752			70			169			822			250
Net decrease in cash and cash equivalents		(4,745	)		(649	)		(14,617	)		(5,394	)		(19,697	)
Cash and cash equivalents at beginning of period		60,286			60,935			86,465			60,935			91,545
Cash and cash equivalents at end of period, including discontinued operations	$	55,541		$	60,286		$	71,848		$	55,541		$	71,848