Top Performer for Friday: Openwave (OPWV)

Openwave Systems Inc. (OPWV) was the only Zacks #1 Rank Top Performer with a double-digit gain this morning. That healthy advance sustained through midday, as shares are up nearly 11%.

At the moment, volume is approximately 482,000 shares, compared to the average of a little more than 397,000.

OPWV, a leading innovator of software applications and infrastructure, is 1 of 3 companies from the Internet Software industry on today's Zacks #1 Rank List, which includes 223 stocks. The other 2 companies are Saba Software Inc. (SABA - Snapshot Report) and SXC Health Solutions Corp. (SXCI - Snapshot Report).

Profitable in the New Fiscal Year?

All 3 covering analysts for OPWV have boosted estimates in the past month. The consensus for the year ending June 2009 has improved to a loss of 2 cents per share from a loss of 5 cents per share.

But it's next fiscal year, ending June 2010, when analysts anticipate the company to be solidly in the black. A profit of 3 cents per share is expected, which has advanced from a breakeven outlook 30 days ago.

A move to a 3-cent profit from a 2-cent loss would mark a healthy year-over-year gain.

Fourth Quarter Estimates Rising As Well

Much like the full year, expectations for OPWV's fiscal fourth quarter have moved higher in the past month to breakeven from a loss of 2 cents.

The company looks to extend a solid record of beating quarterly earnings estimates. Over the past 4 quarters, it has amassed an average surprise of 91%.

In late April, OPWV announced non-GAAP earnings per share at breakeven, compared to a loss of 7 cents a year earlier. The result improved upon the 2-cent loss estimate by 100%. Revenues declined year over year to $44.7 million from $47 million.

"While the carriers are slower to commit, they are showing increased interest and demand for our products," said CEO Ken Denman. "Carriers may not be able to delay purchasing decisions much longer, and Openwave is ideally positioned to address a fundamental network need with our product set."

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