Cell-phone software specialist Openwave
The plan appears to rest on two main ideas: rolling out compelling new products, and cutting costs. The upcoming product line will be explained in more detail in the next quarterly earnings call, but it looks like Openwave is hoping to upgrade our cell phones from just musical ring tones to video clips. That feature was just made available to VodafoneItaly
As for cost-cutting, the company will cut administrative staff in the next 30 days. Sales and marketing staff is safe for now, as is the R&D department, since the cuts are aimed at reducing unnecessary administrative costs. Sales and research remain as important as ever.
It's unclear exactly how deeply management will cut here. With the options backdating investigation hanging over the company like a Sword of Damocles, along with the upcoming changes to reporting rules, I would expect to see an announcement of changes to the stock-based compensation policies within the month.
Openwave is riding rough seas right now, and it really can't afford the distraction of accounting scandals, whether or not the allegations are true. But it could have been worse -- if Openwave is knee-deep in that quagmire, competitor Comverse
- Read up on the reporting rule changes.
- See what happened to some other backdating miscreants.
- Openwave still has some 'splaining to do.
Openwave is a Rule Breakers recommendation, and Microsoft and Vodafone are both Inside Value picks. Palm is a Stock Advisor pick. To see why Fools like diversification, try a 30-day trial to one of our services.
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