Otello Corporation ASA

Earnings Release • Apr 30, 2014

OPERA SOFTWARE ANNOUNCES FIRST QUARTER RESULTS

OPERA SOFTWARE ANNOUNCES FIRST QUARTER RESULTS

Strong Revenue and Adjusted EBITDA

Oslo, Norway - April 30, 2014 - Opera Software (OSEBX: OPERA) today

reported financial results for the first quarter, which ended March 31,

1Q 2014 financial highlights include:

· § Revenue of MUSD 87.0, up 40% versus 1Q13

· § Adjusted EBITDA* (excluding one-time extraordinary costs) of MUSD

22.7, up 23% versus 1Q13

· § Operating Cash Flow of MUSD 15.4 versus MUSD 3.4 in 1Q13

· § Free Cash Flow of MUSD 13.8 versus MUSD 0.9 in 1Q13

Revenues

Revenue was MUSD 87.0 in 1Q14 compared to MUSD 62.0 in 1Q13, an increase

of 40%.

Profit

EBITDA, excluding stock-based compensation expenses and one-time

extraordinary costs, was MUSD 22.7 compared with MUSD 18.4 in 1Q13.

EBITDA, excluding one-time extraordinary costs, was MUSD 21.6 in 1Q14

compared with MUSD 17.5 in 1Q13. EBIT, excluding one-time extraordinary

costs, was MUSD 14.9 in 1Q14 compared to MUSD 14.3 in 1Q13.  EBIT,

including one-time extraordinary costs, was MUSD 13.6 in 1Q14 compared

to MUSD 12.8 in 1Q13.

1Q14 IFRS Net Income was MUSD 2.5 compared to MUSD 3.6 in 1Q13. Non-IFRS

1Q14 Net Income was MUSD 14.3 compared to MUSD 14.6 in 1Q13. The

Company´s non-IFRS Net Income 1Q14 excludes the effects of MUSD 1.1 in

non-cash stock-based compensation expenses, MUSD 1.3 in one-time

extraordinary costs and MUSD 9.6 in acquisition related adjustments.

EPS and fully diluted EPS were USD 0.019 and USD 0.018, respectively, in

1Q14, compared to USD 0.030 and USD 0.029, respectively, in 1Q13. Non

-IFRS EPS and fully diluted Non-IFRS EPS were USD 0.108 and USD 0.105,

respectively, in 1Q14, compared to USD 0.122 and USD 0.120,

respectively, in 1Q13.

Cash Flow

The Company's net cash flow from operating activities was MUSD 15.4 in

1Q14 compared to MUSD 3.4 in 1Q13. Cash flow from operating activities

was impacted positively by strong profitability and changes in working

capital. Opera's cash balance was impacted positively by net cash flow

from operating activities, and negatively by investments in research and

development, investment in Opera's Joint Venture in China and earn out

payments. Capital expenditures, which are primarily related to Opera's

hosting operations, were MUSD 1.6 in 1Q14 versus MUSD 2.5 in 1Q13.

Operational Highlights

· § Mobile Operators

Revenue of MUSD 18.6 in 1Q14, up 47% versus 1Q13

Operator cloud based license/data revenue of MUSD 17.5 in 1Q14, up 48%

versus 1Q13

Operator active users reached 112.0 million by the end of 1Q14, up 68%

versus the end of 1Q13

Launched WebPass with Vodafone and Telkomsel

Expanded partnership with VimpelCom to include Opera´s entire operator

product portfolio

Announced Co-brand Opera Mini partnership with Oi, one of Brazil´s

largest operators

· § Mobile Consumers - Opera Owned and Operated Properties

Revenue of MUSD 13.7 in 1Q14, up 84% versus 1Q13

Total Opera mobile consumer users reached 273.9 million at the end of

1Q14, up 10% versus the end of 1Q13

Android users reached 94.4 million at the end of 1Q14, up 78% versus the

end of 1Q13

Total of 29.5 billion ad requests were generated from owned and operated

properties, an increase of 74% from 1Q13

Introduced and launched Opera Max, a free and easy-to-use data savings

app that compresses data across applications on mobile devices

Signed an agreement with a major internet company for Skyfire´s Rocket

Optimizer Solution, comprised of the Video Controller and the Video

Optimizer

Opera Mobile Store surpassed 100 million monthly visitors

· § Mobile Publishers & Advertisers - Opera Publisher Partner Members

Revenue of MUSD 31.7 in 1Q14, up 72% versus 1Q13

Total mobile advertising impressions managed was 187 billion in 1Q14, up

24% compared to 1Q13

Launched OMAX 2.0 (Opera Mediaworks Ad Exchange), with expanded

programmatic capabilities for publishers and advertisers

Announced a substantial expansion of presence in Latin America with the

acquisition of Hunt Mobile Ads

· § Desktop Consumers

Revenues of MUSD 18.5 in 1Q14, up 6% versus 1Q13

Desktop users reached 51 million by the end of 1Q14, down 7% versus 1Q13

· § Device OEMs

Revenues of MUSD 4.3 in 1Q14, down 20% versus 1Q13

Multiple Connected TV wins, including Bang & Olufsen (Denmark) and

Skyworth (China)

Guidance

2Q FY14 Guidance:

Revenue: Revenue for the company's second fiscal quarter is projected to

be in the range of MUSD 95.5 to MUSD 98.5.

Adj EBITDA*: Adjusted EBITDA for the company's second fiscal quarter is

projected to be in the range of MUSD 24.5 to MUSD 26.5.

FY14 Guidance:

Revenue: Revenue for the company's full fiscal year 2014 is projected to

be in the range of MUSD 390 to MUSD 410.

Adj EBITDA*: Adjusted EBITDA for the company's full fiscal year 2014 is

projected to be in the range of MUSD 108 to MUSD 116.

Please find the first quarter report (1Q14.pdf), first quarter press

release (1Q14_Press_release.pdf) and first quarter presentation

(1Q14_presentation.pdf) attached.

Webcast:

http://www.operasoftware.com/company/investors/webcasts/q12014

Or

http://embed.smartcomtv.no/1C54C3D9-8AA8-4CE9-B018-7D7D31447E5B

Erik Harrell, CFO/CSO

Tel: +47 2369 2400

Petter Lade, Investor Relations

Tel: +47 2369 2400

About Opera Software ASA

Opera products enable more than 350 million internet consumers worldwide

to discover and connect with the content and services that matter most

to them, no matter what device, network or location. In turn, we help

advertisers reach the audiences that build value for their businesses

and publishers monetize their content and services. Opera also delivers

products and services to more than 130 mobile operators around the

world, enabling them to provide a faster, more economical and better

network experience to their subscribers. From family photos and funny

videos to business ideas that change the world economy, the internet has

always been about discovery. Whether you are a consumer getting online

for the first time, or a multinational corporation trying to reach the

right audience, Opera can help you discover more online. Opera Software

ASA is listed on the Oslo Stock Exchange under the ticker symbol OPERA.

'Opera', 'Opera Software', 'Opera Mini' and the 'O' logo are trademarks

of Opera Software ASA. All other trademarks are the property of their

respective owners. Learn more about Opera at www.opera.com.

This Press Release contains forward-looking statements. These statements

include, among other things,

statements regarding future operations and business strategies and

future financial condition and prospects.

These forward-looking statements are subject to certain risks and

uncertainties that could cause our actual

results to differ materially from those reflected in the forward-looking

statements. Factors that could cause

or contribute to such differences are covered in the Opera Software FY

2013 Annual Report under the heading "Risk Factors." We undertake no

obligation to revise or publicly release the results of any revision to

these forward-looking statements, except as required by law. Given these

risks and uncertainties,

readers are cautioned not to place undue reliance on such forward

-looking statements.

*"Adjusted EBITDA", or Non- IFRS EBITDA, refers to EBITDA excluding

stock-based compensation expenses, extraordinary/one-time costs and

acquisition related costs.