Good afternoon everyone, and welcome to the Openwave Third Quarter Conference Call. Today’s call is being recorded and will be available for replay later today. For opening remarks and introductions, I would like to turn the call over to the Director of Investor Relations, Michael Bishop. Please go ahead, sir.

Thank you. Good afternoon everyone. And thank you for joining us today to discuss the results of Openwave Systems' Third Quarter of fiscal year 2007. I’m Mike Bishop, Director of Investor Relations for Openwave. Joining me today from Redwood City is Robert Vrij, our President and CEO; and Hal Covert our Chief Financial Officer. Before we discuss the results for the quarter, I want to remind everyone that we’re operating under the rules of Regulation FD. A press release was distributed at the close of the NASDAQ stock market, and if you’ve not yet seen a copy you can find one at our website at openwave.com. For your convenience, this call is being recorded, and will be available for playback from our website for one year. Before we begin, I would like to remind you that any remarks that maybe made on this call or in our earnings press release about future expectations, plans, or prospects for the company may constitute forward-looking statements for the purposes of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. These factors include the specific risk factors discussed in the company’s press release that was distributed today at the close of market and in the company’s filings with the SEC, including but not limited to Openwave Systems fiscal 2006 financial results on Form 10-K and any other reports subsequently filed with the SEC. We intend to make several forward-looking statements during this call that are based on management’s current outlook as of today. We do not expect to update these business outlook statements until the release of Openwave’s next quarterly earnings announcement, and disclaim any obligation to do so prior to that time. However, we reserve the right to update the outlook for any reason during the quarter. And with that, I’ll turn the call over to Robert.

Thanks Mike, and good afternoon everyone. Thank you for joining us on today's call. The Board appointed me as CEO of Openwave on March 23rd, and I am excited about this role and honored that the Board has placed its confidence in me. Before I run through the script, I wanted to share with you why I joined Openwave, and why I believe a significant market opportunity exits for this company. Firstly, Openwave has a strong pedigree, as a pioneer of the mobile data services market we have an unrivaled heritage as wireless innovators, and retaining unique incumbency with largest operator across the world. And I believe that our new solutions will enable us to recapture our position as pioneer in this market. Helping our customers raise ARPU, while lowering total cost of ownership. The time it has taken us to bring these new solutions to market has undoubtedly impacted us over the past year. However, I'm confident that these new solutions as they begin to reach the market will reestablish Openwave as an industry leader. An area of the business that I do not believe, we have capitalized on has been to recognized the revenue potential in our existing product portfolio. An immediate area of opportunity that I will be focusing on in the near term is bringing the next generation of a core product lines to market. I will cover the traction we are seeing in these core areas of our business in a few minutes. Overall, I believe that fiscal year '08 is a year where my focus will be on stabilizing the business, putting the right cost structure in place and capitalizing on the significant opportunity that I believe exist in our next generation core products while we bring solutions to market. I will talk to…

Thanks Robert. I would like to cover three topics. Highlight of our financial results for Fiscal Q3 '07 directional statements related to Fiscal Q4 '07 targeted financial performance and our $100 million stock repurchase program. Unless otherwise indicated gross margin expense and earning related items are reported on a non-GAAP basis, which excludes stock-based compensation, amortization of acquisition related costs, restructuring expense, retention bonuses related to exploring strategic alternatives and certain legal expenses. Revenue for fiscal Q3 '07 was $71.1 million compared to $83.9 million for fiscal Q2 '07 and a 130 million for fiscal Q3 ’06. For fiscal Q3 '07 the majority of our revenue was related to legacy products and services. The decrease in revenue on a sequential and year-over-year basis is a result of our product transition. For fiscal Q3 '07, Sprint Nextel represented approximately 19% of total revenue on an individual basis. No other customer represented more than 10% of our quarterly revenue. On a geographic basis, the Americas represented approximately 46% of total revenue, EMEA 29% and Asia 25%. Gross margin for fiscal Q3 '07 was 56% versus 61.9% for fiscal Q2 '07 and 71.4% for fiscal Q3 '06. The primary reason for the decrease in gross margin percent is a drop off in license revenue as a percent of total revenue. For fiscal Q3 '07 license revenue represented 21% of total revenue, 29.5% for fiscal Q2 '07 and 51.4% for fiscal Q3 '06. The decrease in license revenue is a result of product transition. Operating expense for fiscal Q3 '07 were $60.2 million compared to $58.1 million for fiscal Q2 '07 and $62.2 million for fiscal Q3 '06. For fiscal Q3 and fiscal Q2 '07 operating expenses included $1.6 million and $2 million respectively for bad debt expense. For fiscal Q4 '07 we do…

Thank you. (Operator Instructions). Our first question today will come from Lehman Brothers, [Amir Roderdowski].

Hi guys. Just a quick question in terms of the backlog, I know how you had mentioned that the bookings didn’t include any of the new or next-generation products. How should we consider next-generation products traction and sort of composition within your backlog?

So I would say that, the way to look at the backlog now is very similar to the way we started as I mentioned fiscal Q3 in terms of license revenue maintenance and support and professional services. So pretty much a snap shot going forward certainly our goal is to close our next-generation business and also some large projects and those start that new business should have a profile. It looks like our old business, essentially prior to getting into this drop off with higher license revenue.

Okay and then just secondly, it seems as though your headcount has remained fairly flat for the last several quarters. The question I have is having publicly announced the seeking strategic alternative, what type of programs are in place to incentivize your employees in order to execute on some of the strategies led out by Robert?

Yes I think there would be done a couple of different things. I think you do know that we did announce some change over control brilliance for our senior executive team. So they have started to help us get through this process and if there is no outcome, they'll continue with the company. For the next layer down, we have implemented a number of retention programs and we did have a small amount of our expense flow through this past quarter for that. In the next two quarters we do expect to continue to have expenses related to retention bonuses and again we feel that we've done the right things in terms of looking and giving incentives to the critical people to stay with the company as we work our way through this program.

And then I guess, lastly moving on to your customers, in terms of I know Robert you'd mentioned some of the discussions around the carriers in terms of the longer term viability for support of Openwave. I mean, is there any other color you can give us, because it seems as though given that bookings were down -- surrounding how we should consider carriers reception for new products and so forth there?

Yeah thanks for the question. As I mentioned before, I have spent an amazing amount of time on the road as of recently and the feedback from carriers has been as follows, is that they have seen that there has been a number of different consolidations on the network infrastructures side of the IMS architecture. You've seen Lucent, Alcatel Siemens as well as Ericsson and so we have actually been in acclimated to an environment where they have seen a lot of different considerations relative to strategic alternatives. So when I talk to them, they continue to be convinced that with our focus on them as customers. And we really are intent to continue to look as bringing them broader solutions in the future that they actually feel convinced that we are as a company are not only proactive as we should, but that way they generally feel very-very comfortable with -- looking at Openwave on a going forward basis either independent or with any other type of an arrangement that can give a larger "solution" to them as we go forward.

Thanks a lot guys.

Thanks for the question, we appreciate it.

Next question comes from Matthew Hoffman with Cowen.

Yeah, another question for you Robert. Can you just talk about the timeline for some of the new products, the mobile widgets, looking at internet browsing and the in relative the zero bookings on the new product front? Is that really a function to market readiness or is it a question of uptake or just a really long sales process for the new products? Thanks

Thanks for the question, relative to mobile widgets and some of our new products that we have launched are mentioned in the script as recently at CTIA, we are definitely getting the confirmation from those customers that those particular products are right in line with their goals for new ARPU generation and total cost of ownership, as it relates to some of the short term decisions, relative to some of the new product sales. Customers as you know are going through the process of looking at reference architectures and have to do with IMS. And so we are obviously actually being very proactive at looking at our products and the pitching of our products inside that new complimentary IMS referenced architecture. And so I think the timing as such is having to do with that piece of it as well as I think some of the effect that we have now more recently looked at, not only leading its products that we believe we are going to actually lead to our revolutionize the industry again. But now recently we found amazing amount of opportunity and taking what we have traditionally found in our legacy products and up selling those opportunities in the three major areas that I have talked about in this script. Taking our gateway business to the next-generation gateway business, which again is heavy on ARPU, and heavy on total cost reduction as well as a natural extension of our market leading position in e-mail with a product called Rich Mail. And then also on the browser side again as I mentioned earlier with products such as widgets. So I think that’s the end of they did, they associated with the timing of those decisions relative to some of the products that we have available today and those that we are be able to bringing to the market in the next 2 to 3 quarters.

Though wasn’t the IMS, some of the new products are dependent on the roll out of IMS?

It’s very important for us to make sure that our products are IMS ready and as a key focus as a company to ensure that our product portfolio is as such the advantage we have it Openwave in that regard is that our portfolio as you know is very heavily on IT, which give us an advantage in order to be able to play in that IMS architecture.

And how -- could you go over the guidance one more time or just not call it guidance, let’s just talk about the goals for the business I caught the OpEx of non-GAAP OpEx of 55 to 57 [build] what you say on the revenue front?

I think there are really three key things. On the revenue front basically what we saw is that we started fiscal Q4 with a profile very similar to that of fiscal Q3. So I think that gives you at least an indication of what direction a revenues are going to go in. The other key things we did as you have mentioned, talk about 55 million to 57 million and non-GAAP expenses and we have also think that we can continue to make progress in plenty of our accounts receivable and generate some more between $10 million to $15 million as a result of that.

Okay thanks.

You have a question from Scott Zeller, Needham & Company. Scott Zeller - Needham & Company: Yeah thanks, my questions have been answered.

Thank you. (Operator Instructions). We moved to Larry Harris with Oppenheimer.

Yeah, so thank you. Question for Robert, in terms of -- many of the carriers including Cingular have been talking about acceleration in terms of data revenues particularly is 3G subscriber growth starting to pickup and we haven't seen that at least thus far maybe -- new products haven’t kicked in yet, in terms of the revenues at Openwave are the carriers spending money in different areas, or they waiting for the new products? Why have -- and I know you are new here but why have your revenues been dropping at the time when data revenues for the carriers appeared to be increasing?

Really I think as I mentioned earlier on I think in this script is that, I think for us the carriers are again very much interested. So, at least somewhat 60 to 90 days on the road as I mentioned with about our top 50 or so customers. They continue to be very much focused on opening their wallet as I would like to call it, to those products that given that ARPU that they are looking for. As you know, many of the carriers in the last several years have been stressed by compressed voice revenue and they have margins and as we approach them with new revenue generating propositions at a relatively wise much lower total cost of our ownership, that you have seen traditionally from Openwave. We have seen that there is CapEx available at significant levels for us. So feel comfortable in these three major areas that we play and with our Gateway business, our messaging business, our client location business and we continue to operate in multi-million dollar addressable markets. And we believe it as an underlying point as long as we continue focus on ARPU and lowering total cost of ownership that we will continue to sell successfully and get a rightful share of that wallet.

The other thing I would point out is that, our customers have capacity installed, which has helped them to address the increase in data traffic. They are now at a point where we think, they are getting ready to move to make the next step with us. So, we think we're well positioned to take advantage of that.

Great, alright thank you.

Thank you for your question.

Just a final reminder (Operator Instructions). We will take the question from [Jovan Matthew] with Deutsche Bank.

Hi Robert, this is Jovan Mathew on behalf Thomas Ernst from Deutsche Bank.

Hello there.

Yeah. Just a quick question, you had mentioned that most of your products are linked with IMS, so can you give us an idea of IMS' readiness of various market in particular EMEA, Americas and how Europe is doing?

Yes, I mean I am likely again, in fact it's been as Thomas recently was last week in Europe with many of the largest operators, where we continue to hear, is that they either have already or in the process of building a reference architecture that is historically based and traditionally based on either one or two primary global suppliers and we all know who those suspects are. So I found that relative to geography by geography, not that much difference relative to the actual adoption of IMS as the major reference architecture for them. And so for us as you know being sitting at the services application layer, we are certainly with our product portfolios mentioned earlier being very much so and all IP portfolio played very naturally into the IMS reference architecture. And so, I haven't seen in my extensive travel in last two to three months a significant distinction from region to region relative to IMS adoption.

Okay, that helped.

Thank you.

Thanks

Ladies and Gentlemen, that does conclude today's question-and-answer session. I would like to turn the call back over to Mr. Vrij for any additionally closing remarks.

I would like to thank everyone for their attendance on this call. I look forward to having another opportunity to have this call for next quarter and appreciate again your attendance, look forward to meeting you in the near term. Thank you.

Once again thank you all very much for joining us today. That concludes the presentation. Have a great afternoon.