Subpoena and Earnings Dissapoint Openwave Shareholders
Late yesterday, news broke that Openwave(Nasdaq:OPWV) recieved a subpoena for information about its options valuation. Supposedly employee stock options were being valued at dates when the share prices were at lows instead of the actual date of issuance.
Today the company lowered it earnings estimates. Competition from the free phone browser Opera has put heat on the openwave software. Shares of the Openwave fell 33% to $7.67 in trading today. Shares have fallen from prices in the low $20s since April.
2007 may be brighter for Openwave. More users are using their cellphones to browse the internet and the company has continued to attract new clients and increase revenues.