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Openwave Systems sets financial targets

Recently merged Phone.com and Software.com re-created themselves Monday as Openwave Systems Inc. (Nasdaq: OPWV), and announced financial guidance into 2001.

Shares in the provider of open Internet-based communication infrastructure software and applications started trading Monday, up , replacing Phone.com and Software.com's two existing tickers, (Nasdaq: PHCM) and (Nasdaq: SWCM). Phone.com recently toppedestimates in its first quarter.

On a conference call, OpenWave CEO Don Listwin, a former Cisco executive, said the integration of the merged company will be rolled out in phases. The company has "functional integration" completed and will have infrastructure rolled out this week. The company will offer more guidance at an analyst meeting in January.

CFO Alan Black said the company sees 20 percent to 25 percent sequential revenue growth from the $80.8 million in combined revenue for the September quarter. That projection eliminates inter-company revenue. License revenue will be about 70 percent of the total, said Black.

For 2001, Black said the company is on track for operating profits by March. Revenue for calendar 2001 is expected to be $580 million with sequential growth of 15 percent. Once the company becomes profitable, operating results will improve each quarter for the next 12 quarters.

OpenWave will have more than 1,700 employees with 27 offices in 15 countries.
• Phone.com tops 1Q estimates>