Wave Systems Corp. (fka WAVXQ)

[tkc]

Hi Zen, I'll give it a go. SG&A + R&D sit around $7.9M for the past 2 Qs. Of that ~$.65 is non cash expense for SBC & depreciation. So Gross Profit would need to be ~$7.25M. If gross margins remained @92%+ they would need $7.9 in rev. One would think that w/ price incentives for early adopters margins will fall. Using 85% margins they'd need ~$8.2M. However for CFBE we need to consider the ~&1.7M in rev that will be recognized from Deferred rev & LTD rev (that's not new cash-it's money they were paid in advance of delivery and has been spent). Anyway, just guessing, Wave needs about $8.2-8.5M in NEW BILLINGS for a CFBE Q. With substantial growth in new sales Q/Q they may have enough to get through Q1. Look forward to what Dig says.