There are two posters on boards who seem to have the technical background and the insight of software security industry to make proper judgements about Wave future:awk and Expat. After many years of almost continous disappointments awk is still a believer in Wave great future. Expat got invested four years ago, recently sold out and predicts Wave bankrptcy is just a matter of time. One of them is right, but who? Solms does not talk, not communicating except some nice management principles. This arises another question: could they be applied to a company with a future or not at all? Only one fact is certain: the deafening silence from Wave leaves the shareholders in total dark whether there are big things to come or a desaster. True, silence is much better than promises of huge pipelines and breakevens which remain dreams. But so far Solms communication has been close to nil. Even the Samsung announcement has been formulated in such a way that no one understands whether this is a material deal for Wave or not? All in all nothing good for shareholders. Just to hope that Expat is wrong is not good enough, facts and infos are an absolute must.

After bringing Wave on quasi bunkruptcy, feeding the entire Sprague family,destroying the life savings of thousands of people, hiring and firing hundreds of people, announcing on a regular basis huge pipelines which never materialised, lying on each possible occasion about breakeven(punishable by law) SKS has no decency whatsoever question his "golden parachute"which he never ever deserved. Once aagain: he is a real bastard who had no any credentials, abilities or credibility for a CEO job.

After causing losses of over $400 mill. and destroying totally the shareholders value, that is the life savings of thousands of people SKS could still pretend to get his "legal" pay out!!! The legal system is sometimes totally nonsense. Not only should SKS get nothing but he should be brought to justice for all his outrageous lies over years which intentionally misled the investors causing incredible pain to all of them. SKS is a real bastard.

Almost incredible but true there are still some people defending SKS "performance"!!! "WAVX would not be where it is without Steven"! Indeed! Wave would not loose slowly but surely Dell, the only reason why this company still exists, a small company like Wave would not be involved in all kind of most stupid projects like Wavexpress, TVTonic, scrambles, esign all consuming huge resources but bringing no revenue at all or an insignificant one, Peter Sprague would not get 250K/year for getting Wave logo on an electric car, the shareholders would not have lost 99% of their investment, Wave would not be the joke of investment and IT community, Wave would not face the end of its story!!! Anybody would be a better CEO than SKS, lets hope Bill Solms would be an infinetely better one. There is only one question still to be answered: is this all SKS fault who "delivered" what he was "able" to including the limitless arrogance that he could do whatever he wants or is the BoD responsibility that Wave is where it is, that is nowhere??? Perhaps it was the addition of Bob Frankenberg who saved the company, because the rest of BoD proved over the years: it was absolutely useless, to say the least.

I certainly hope you are right and that your confidence is based on hard facts. But before we hear much more about the real status of Wave, not least about its financial health and about those "huge" pipelines ready to materialise since ... years I remain most sceptical. Too much nonsense accumulated over the years and the "family" + BoD were much too close to believe that suddenly a new world is there. I would rather prefer the SEC and then the State attorney office moving in to clean the place once for all.

Wave is most consequent in its communication policy: a new CEO and no word more!!! Whether this is because of imminent end, a catastrophical Q3, most suspicious financial deals or simply the awareness that the Spragues connection has been a total catastrophy ... full secrecy!
No doubt though, Steven Sprague should be brought o justice for his outrageous lies over the years and for destroying the shareholders value to nil. Equally responsible is the BoD who has completely neglected its duties. Furthermore Feeney is responsible for bringing Wave to where is it today by his incredible DD with Safend, perhaps the ultimate blow for an almost bunkrupt company buying a completely bunkrupt for an outrageous price.
What a bunch of nils. Who would want to deal with this company?

Hopefully BoD action is not too late. SKS has never been a CEO it was just a very sad joke to see over years the guy jumping well over his level.

You are perfectly right!
If someone believed all that crap which Peter Sprague was spreading around 15 years ago or so not having any product whatsoever, then this is his/her fault. At the same time there is no question that Peter Sprague was looking for shareholders money without risking any own money to build something which proved to be just... nothing. Then Steven Sprague 14 years as CEO produced the great result of not being deleted from NASDAQ!!! Anything else is a smoke much likely to be never more than that. With its more than limited resources Wave will either be bought out or atay an insignificant player. Or does anybody believe it is the next Microsoft??? By the way the initial investors do have today for each $ they invested about $ 0,1-0,001. The best investment ever not least thanks to "further progress" statements of Steven Sprague and multiple gurus and "positive thinkers" on this and other boards! So we are not far from a real scam.

Great post. Hopefully enough shareholders will read this, so that those nonsense plans of SKS and Feeney will have no chance.

The present catastrophical situation has a number of obvious reasons :

The acquisition of Safend which has been done without an elementary acceptable due dilligence. This has been a blow that drove Wave to the present delisting danger. Alone for this Feeney should have been fired right away. The guy is still making something not very far from a million/year... This in a small, almost bankrupt company!!!

The hiring of a sizable sales team which proved to be a huge burden for Wave finances with nil return. Either the sales guys were useless or they had nothing reasonable to sell. In both cases the CEO is the one who did it.

The total dependence of Dell is turning quickly and powerfully against Wave. No company in the world will survive for long based on a single major account. The Credant acquisition was a clear signal that Wave days with Dell were numbered...

A useless BoD which for years went along with the most stupid Wave management decisions and never ever gave any sign of making any sense in its position.

Finalyy, a totally incompetent CEO without the slightest experience and background for his position and on top of that lacking elementary moral credentials for the job, nepotism included.

There are only two groups who are paying for this desaster: a frustrated and demotivated Wave stuff and the shareholders who lost virtually everything. Given the fact that a CEO is primarily responsible for company customers(hardly existing) employees and shareholders how could the present CEO could be still in his position???

If SKS would have a minimum of decency he would resign right away together with most of BoD. The amount of lies, false forecasts, promises and catastrophical results of his CEO activity is an image which no CEO could ever overcome. He might be a technical advisor not more than that. CEOs have been fired for 1% of what SKS has behind him and right so. By the way Feeney is a joke of CFO too.

There are three crucial moments in those nonsense way of SKS statements:
One is his answer to the question whether the shareholder investment is in jeopardy. He did not say NO, he said "I would say no". Knowing his statements in the past, this sound to me: expect a possible total catastrophy.
The second is a very likely reverse split. There are few weeks to go to avoid it. Would any one bet is not going to happen?
Finally, how many times have we heard about pipelines of astronomical millions?, 20, 25, 50 or potential of billions. The reality a proven incompetent CEO, a no sales team, Dell likely fall out, competition catching up might well lead this investment to nil. But miracles happen... The hope dies last!

Alone fr his cc presentation a normal BoD should have fired SKS right away. After a catastrophical quarter and year, instead to adress the issues facing the shareholders he talks mostly about Wave greatness and even greater future. The only time as an answer to a question he says: "I hear all the time about share dilution" indeed something not to bother him with. Shareholders are for financing his Safend catastrophy, Scrambls nonsense, hiring sales reps who sell nothing and financing bonuses for him and other Spragues.
Not a word about coming inevitable PPs, reverse split or deletion from Nasdaq or his forecasts of BE by now or the Credant/Dell issues which might be the ultimate blow. The guy is either close to insanity (to talk about technology instead of real issues facing the shareholders) or he is determined to try to fool the entire world up to the very end.
I listened to his whole nonsense hoping to get to ask real questions but no way. Would be interesting to know how the questions are selected.
If Wave is to get one more chance the only solution is a buyout otherwise it is the end as ExPat, Blue and others have predicted since long.

You are certainly right

I hope someone will ask SKS whether given his most miserable track record he is going finally to resign and stop boolshiting everybody with his idiotical statements since well over 10 years. I cannot get through from Europe so I hope there will be such a question even if the answer is not going to be what everybody expects. It is about time to write off this investment. SKS lied for years and some people on the boards supported his lies with endless nonsense hopes. Just forget Wave is about to go down for good.

Many people here agree that SKS is one of the most incompetent and dishonest CEOs in NASDAQ history. Nothing whatsoever qualifies him for the job and he proved that with admirable consistency over the last 10 years or so.
Even so there are some points which are still are arising some questions unless the guy is completely out of self-control:

- An almost bankrupt company Wave is acquiring a totally bankrupt company Safend and with it is loosing the last few finacial resources the company owned! Behind Safend has been Intel capital. Was this a deal for Wave´s future too because otherwise the move is just too stupid to be true. Another explanation would be that SKS still dreams about delivering a security solution for everybody and everything to become master of the universe but then he got completely insane.

- the hiring of a significant number of sales people (related to Wave size) who sold NOTHING is again something which cannot be justified with a sane mind. That BoD signs just about everything coming on its desk is known but is this not just above the "normal" insanity?

- to invest again millions in Scrambls, something well away from the company mainstream and then give away for FREE is a TV Tonic 2, again something what cannot be explained with a sane mind. Even nepotism has its limits when is coming to a final blow to the company.

Could it be that a buyout is coming? The long silence? It would be a huge loss for most long term investors but at least not a total loss.

Back in 2007(!) at a cc SKS was predicting that the quarter after Wave will be profitable. After this forecast ended up as always I talke to Wave legal counsel. Beside that such kind of forecasts from a CEO are totally unacceptable and in most companies is a reason to fire this kind of CEO, it is a criminal thing too. His answer: you can sue the company if you wish but the only thing you will get is the legal expenses bill. There is no money in the company so you will get nothing!!!
This Wave style is very much alive and only the shareholders might believe that they count. The Wave investments is a catastrophy and for the peace of mind it should be simply written off. The Spragues cannot complain, they made enough millions from a permanent bankrupt company. None of them had ever thought to cut his salary or to cancell those bonuses which are more than ridiculous.

Lessons from investing in WAVX from a long term investor.
1. Never ever invest in a company which comes in the stock market with no product at all. Promises and "big names" might be a scam or might be a real opportunity but one thing is sure: they want shareholders money... In Wave case Sprague family made at least $20-25 millions in the last 15 years or so, the long term shareholders lost it all.
2. Never invest in a company where the CEO´s only qualification for the job is being the son of the founder. Neither his education nor his(nonexistent) track record entitled him for the job. Subsequently, his performance as a CEO has been a catastrophy. Some knowledge of TC is not a qualification for a CEO job.
3. Never listen to the so called psitive gurus who believe to know it all(although they know very little or nothing) and they stick to it even if they lost themselves everything too. Their favourite occupation is bashing the "bashers" that is those who who shout "the king is naked".
4. When the CEO issues his first of many outrageous lie, e.g. 2007 Wave will be profitable run away as quickly as you can.
5. Positive thinking is deadly for the stock market. This market is all about facts and figures, nothing else. The present SP is reflecting it.

Will Wave survive? Perhaps. But the price of 15 highly frustrating years is simply much to high for whatever to come.

All long term investors who have been naive or stupid enough to trust Peter Sprague, Michale Sprague and the worst of all Steven Sprague have been outrageously lied and cheated over the past 13 years. Everything this company promised has been a total lie. The Spragues Have cashed millions for their lies, the long term investors have lost everything. Steven Sprague is not any more a joke in the industry, he should become a case for the court.

No company in this world will tolerate a CEO which shows one tenth of SKS "performance" over 13 years. This is what is really outrageous about this company. The share price just reflects the real situation.

After 13 years of Stephen Sprague CEO those investors who have believed all those quarterly "further progress" statements are facing delisting and practically the disappearance of their investments. Perhaps Wave still have a chance but only if Spragues will be gone. They are so discredited that no one in his right mind will believe a word from what they are saying. Add to that SKS Million/year income plus 500K/Year for Peter and Michael Sprague together and then one has the full picture. How much longer? The next shareholder meeting might be the last chance to get a new management and some hope for the better.

Peter Sprague E_Chip complete failure
Michael Sprague: Wvexpress/TV Tonic complete failure
Stephen Sprague Wave CEO complete failure
BoD tolerating all this : complete failure.

Shareholders tolerating what is happening with thir money???

Telstar, great post. Unfortunately as long as SKS is running the show in the most incompetent way and with his dad in background and with an utterly useless BoD nothing will change to the better. It is still a Sprague company employing Michale Sprague who costed $50 millions with his "great" Waveexpress-TV-tonic and now in the most incredible way is developing scrambls which has zero t do with the company focus but a lot to do with Michael Sprague income. Same is true for Peter Sprague who is cashing a handsome salary for what??? Unfortunately it is the fault of shareholders to let this incredible state of affairs continuing since years. Instead I could not agree more this bunch should be fired and a seasoned CEO put in place. Next day the SP will triple because the technology is healthy, but the management stinks.

Unfortunately the NATO announcement is nothing else but an agreement that Wave could compete for contracts. This and thousands more of these kind of news will do nothing to change the catastrophical SP. SKS might know something about TC as a CEO his capabilities are well below nil. To bring the SP close to zero requires a CEO of phenomenal incompetence assisted by a geriatric utterly useless so called BoD. To let expenses get out of any control and get where SP landed is unique in NASDAQ history. The Street is so fed up with all those nonsense promises over the years that what matters is only hard $ revenue and profitability. Until then one can pray that with all those "loud" statements we will not wake up and read "it is over". This is something SKS is certainly capable of achieving. Until then the shareholders could continue to dream about SP of 10-100-800, whatever one would like. This kind of "dreams" are keeping that incredible (non)management team in their seats.

From many SKS nonsense statements and lies one has been particularly "interesting": "Between the future of the company and shareholders iterests I choose the first one". Aside from the fact that to consider shareholders interests opposed to the company´s future one must have a sick mind nowadays the statement might make sense! You get plenty of shareholders money, develop the knowhow, then drive the SP to zero (with according sorry statements) and then take the knowhow and start again free from any constraints of a public hold company. Is this scenario out of question? Looking at the present SP not at all. Is this criminal? Ethically yes, legally no. Time will tell but one thing is clear: the shareholders left themselves manipulated by Spragues and never ever did anything against it. So there should be no complains.

Start up after 15 years???

I agree with you 100%, I do think what is going on is just too insane to be true. This reminds more and more a very dirty game at whose end the shareholders will be left with nothing. A company which is almost dead is SPONSORING a product which has nothing to do with TC but with a Sprague, at the only ASM day in a year SKS is scheduling a trip to Europe not to spend any time in private with potentially dangerous shareholder questions (another BoD member is sleeping there). From a shareholder point of view, in 12 years SKS managed to bring down the SP from 150(true there was nothing behind this figure except empty promises) to almost zero. He is still CEO and keeps talking about ... Thailand and "further progress". Leo Apotheker managed to drive down HP share price 30% in 11 months after that the BoD fired him, a utterly normal procedure. The whole Wave development shows that the shareholders were only for milking purposes and there was never ever the slightest concern for shareholder value. Therefore I strongly suspect a very dirty game (legally clean) is going on and the shareholders will be left with nothing. Hopefully I am wrong but so far everything is pointing into that direction.

From present prospective looking at the recent Wave developments: Safend acquisition, major payroll increase, incredible management compensation packages
annual increases, scrambls investment appear to be completely insane! The alternative is to believe those voices on other sites, who claim Wave has beea always a financial scam... If at the end it turns out SKS&Co cashed over years millions and the shareholders are left with nothing, then ... who is right?
The present SP arises other questions too: what is the motivation of Wave employess hired on a major stock options basis? Would any major private or state organisation leave its security to a company which could go bust any moment???
However the worst of all are the shareholders who tolerated over the years the intolerable, believing all those promises, forecasts and outright lies. SKS might know something about TC as a CEO he proved being utterly incompetent to say the least. The same is true for BoD. But the shareholders never did anything to change anything. The price is obvious and even worse might well come.

Most shareholders did not and do not get the "philosophy" Of Wave Systems Corporation. Most start up companies are starting by getting funding from the founders, venture capitalists and individuals based on a promising business plan, develop a product which is put on the market, is selling well and then follows an IPO. For Peter Sprague this was too long, uncertain and difficult. He and a number of rather known personalities of high-tech industry(the present BoD) announced a "development stage company for a chip which will own the internet! So the financing was to come exclusively from the shareholders who were clever or stupid enough to see the "potential" guaranteed by "great names"! The product was a complete flop, Peter Sprague and his friends did not loose a cent, the shareholders lost almost everything..
Peter S happened to have two sons, one of them SKS managed to get a BSc and work few years before succeeding his dad as a CEO without the slightest credentials for the job except being a Sprague and cashing almost a million/year for never having one single profitable quarter. The other son got $50 millions funding for the wonderful Wavexpress another complete flop.
And so the story continues: since 12 years SKS promises each quarter the Nirvana, Michale Sprague is getting 250K/Year for another potential complete flop called scrambls, something Wave with its very limited resources and huge losses should have never ever considered and even dad is getting 250K/year for ... making calls. And the shareholders are paying again, their investments being very close to zero. This is a great case study for an MBA course how to misuse the shareholders so they will hardly notice before everything is lost! The SP is at all time low, how much longer will the shareholders accept all this nonsense before there will be nothing more to talk about???

Unfortunately for Spragues&Co ASMs are a legal requirement, so they have to take place yearly. Since 15 years it is all the same: the future is sky high or higher. This year the reason why SP is not yet at 100( but very close to nil) is Thailand!!! How much longer will the shareholders listen to all this nonsense???
Everything is going wrong with Wave: Safend catastrophical acquisition, huge payroll increase and worst quarter sales,
useless BoD(Peter Sprague´s puppet), CEO zero credibility, last but not least an overwhelming new competitor Intel/McAfee, a deadly one!
But SKS claims it is all Thailand, isn´t it??? Or may be Wavexpress 2, sorry it is now called scrambls will be the solution???
The shareholders who accept all this nonsense and leave the Spragues to own completely a company which does not belong to them, deserve the results.

One of the higlights in the career of Wave CEO was his statement, between the future of the company and shareholders interest he is clearly choosing the first!
Well, he did: an almost bankrupt company, Wave Systems Corporation buys a bunkrupt company, Safend for $5 millions(!!!), hires a lot of expensive staff mainly in sales and the sales decline significantly, has plenty of resources to invest in a new great venture called scrambls which has nothing to do with the Wave mainstream ( the project manager is another Sprague who burried $ 50 millions with his great Wavexpress project and is still cashing a great income from Wave!!!), after 12 years of Sprague CEO the stock price is at all time low(presplitt considered) close to zero. This all sounds too insane to be true unless a much dirtier game is going on which will certainly leave the stockholders with nothing. But it is all legal and approved. The stockholders are voting the ceo in the board and accordingly as CEO so it is all clean! The real insanity is at stockholders side who are voting their own end. Too bad.

The least thing shareholders could do is to vote SKS out of BOD, out of the company together with his relatives. No CEO in the world would survive for 10% of lies SKS was spreading over the years. This company needs to get a CEO which has the respect of the market. SKS has never had it, he is CEO exclusively because his name is Sprague. Nothing in his CV entitles him for the CEO neither the education and even less the track record which is les than nil. I am calling on shareholders to vote him out at the next ASM. Then the company might have a chance.

I said before I will say again it is time to fire the entire Sprague family and the Board except Gilder and Frankenberg.
This is a Sprague owned and run company, the three of them costs around $1,5 mln/year and they brought at the end permanent lies, nonsense products, broken promises and forecast and above all permanent losses. They do whatever they want, never forgetting their income from a company which is almost bankrupt and is kept alive only because the shareholders are stupid enough to continue to believe in a never coming great future. No company in the world would tolerate a CEO with the kind of "performance" like SKS showed consistently over the last 13 years, Peter Sprague is cashing 250K$ for making calls to his contacts??? He is not in the board but decides whatever he wants and HIS board just follows. Michael Sprague "developed" Wavexpress which led to the famous inverse split and now the same "encouraging" words one hears about scrambls!!! This is a real catastrophy and the company might be finished. Having incredible losses Wave buys Safend for 6 millions!!! a virtually bunkrupt company, hires a lot of expensive staff and no sales whatsoever. This is pure madness. If the shareholders will not vote at the ASM the Spragues and the board out then they deserve to see their return at ZERO.

Were you not the one predicting Wave SP will go to 800???

The time arrived to get rid of Sprague family. Their record is so catastrophical that no company in NASDAQ could even remotely compare! First was Peter Sprague with his famous chip project which failed totaly. Then it was Michael Sprague with his infamous Wavexpress causing costs of over $50 millions and almost buncrupting the entire company. Then Steven Sprague, CEO since 13 years. His "performance" could not be better: never one single profitable quarter, hundreds of broken promises and forecasts, cashing an outrageous compensation of almost $ 1 million/year which for a company which never showed a profit is more than outrageous, made Wave a joke of entire IT community, lacks any credibility, has no any track record and is CEO exclusively because of his father and so on and so on. All three Spragues are still on the payroll and are running the company with thir hand-picked and utterly useless board.
Steven Sprague does not give a damn about shareholder value, therefore it is time the owners of this company show all Spragues the door. Perhaps is too late but may be not. I call for dismissal of the board except Gilder and Frankenberg, it is about time for the shareholders to act!

If anybody thought that Wave, a company that never ever made a profit could buy a privately hold company, Safend which has been de facto buncrupt and this will not have any negative impact on sp then he cannot be helped!
Whether Safend acquisation will pay off only next year will show. Unless SKS and BoD went completely insane, they must have seen such
outstanding business prospects, that they went ahead including own significantly increased hiring. The main bet, the government should pay off 2012 which should see Wave revenues explode. If this will not be the case, then only a buyout will save Wave. Latest by 2013 the competition will be all over and the present window of opportunity will be almost or completely closed.

Great post tkc, one of the best ever. I would only add one reason: the shareholders might wish a CEO who is up to the job.

There is always a possibility that there are developments which we are not aware and the insiders are pressuring the sp down. Nevertheless the relative low volume seems to speak a different language. This stock is heavily manipulated even considering the overall negative environment in the financial world. Under normal circumstances alone the Samsung announcement should have led to a significant SP increase. The news from UK and US government be it pilot runs or plans for immediate future should have given another powerful boost. Nothing like that? In addition to stock manipulation an issue is certainly the credibility of SKS statements which is diminishing from a rather low level....Even so, it is highly unlikely that he would increase significantly the payroll without very firm reason. Hopefully the next few weeks will prove that Wave is leading the TC revolution and the sp will follow accordingly.

This is probably the only realistic assesment on this board regarding sp. One can only hope that is on conservative side but this is much better than everything which appeared so far here.