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These episodes may not directly relate to wave's prosperity, but I find them incredible. The news has been awash in this type of story. It's almost comical how they're posturing for celebrity.
ADP payroll firm hacked.
Now this could really be interesting. Could you imagine some hacker posting payroll data for some company? One of the big four things you never discuss, politics, money, sex and religion, posted for all to see.
http://online.wsj.com/article/BT-CO-20110615-712649.html
DOW JONES NEWSWIRES
Automatic Data Processing Inc. (ADP) said its security team detected an intrusion in one of its benefits administration systems, which it believed affected only one, unspecified client.
The breach is the latest among several recent hacks, including high-profile intrusions at Citigroup Inc. (C) and Sony Corp. (SNE, 6758.TO).
Wednesday, the company, which is one of the biggest payroll processing and human-resources outsourcing companies in the country, said it is investigating the breach, which occurred on a nonpayroll platform from a recently acquired benefits administrator, Workscape. The platform is no longer sold by ADP but continues to function on a legacy basis.
ADP has contacted the unnamed client and said it would continue to help mitigate any problems arising from the incident.
Because it is cooperating with law enforcement in the case, ADP said it couldn't provide more details. The company stressed that protecting its clients and their data from "has been, and always will be, a top priority."
In general, ADP's performance has stabilized after the economic downturn caused clients to lay off workers and, as a result, seek fewer of the company's services. In its latest quarterly results, profit improved modestly as expected while the company reported strong client revenue retention during a key period.
Shares were recently down 1.9% at $51.66 in the midst of a broad market downturn. The stock has risen 12% since the start of the year, better than the market at large.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
CIA website taken down by hackers...
http://www.cbsnews.com/8301-503544_162-20071386-503544.html
Computer hackers broke into the Senate's public website Wednesday though they were unable to get proprietary data, the Senate acknowledged today.
It was the second such attack in less than a week.
Meanwhile, the CIA website was taken down Wednesday afternoon. The hacktivist group LulzSec group claimed credit.
"Tango Down--cia.gov--for the lulz," it wrote on Twitter.
Deputy Senate Sergeant at Arms Martina Bradford said the hackers' attempts to penetrate the Senate network failed. They were able to download some information from the public site, she said, but could not access sensitive data because they were blocked by a firewall.
Over the weekend, a portion of the Senate website was hacked in what Bradford described as a similar attack. Lulz - which is best known for a recent attack on Sony - claimed credit for that attack. The attack prompted a review of Senate web security.
Bradford said Senate networks have been targeted by hackers since they first went online.
Read more: http://www.cbsnews.com/8301-503544_162-20071386-503544.html#ixzz1POVkUSSe
My take on the release is it was written by an engineer and not a sales guy. I'm glad to see it but would like to see more releases such as this with more emotion as others have said.
AJ, what is the SP post reverse split?
AJ, do you think userid/pw will be saved by the bell? Looking forward to your comments on the subject.
Hey AJ, you forgot to ask about the 23 years of continuous losses and how wave has avoided bankruptcy.
I believe the problem gets worse when considering a third party has your data. Reference the recent Epsilon data hack. Here's a third party that allowed their customers' customers' data to be stolen.
Who is responsible? How does one prove their identity was stolen and cost them time and money by this episode? It's so difficult to prove that virtually protects Epsilon and their customers.
I worked for BASF up until 18 months ago. We used Dell desktops and laptops. I'll check with old colleagues to hear if they have / are getting new machines and with what.
I'm pleased with today's announcement, especially that BASF allowed wave to articulate their name in the PR. BASF is a quality customer to have.
AJ, I'm not sure why you reference a .99 pre r/s figure for today's SP. I'm still interested in your opinion regarding userid / password and its usefulness in 3 years since you've been so kind to deliver so many other opinions. Thanks in advance.
brant_point, thanks for the post. Usually the reported data losses mention a lost laptop, i.e. forgot in an airport, and don't expressly say accessed by unauthorized entry. This is a huge difference and I hope this story has legs.
AJ, do you believe userid/password will be around in a couple years?
AJ, I'm not sure what investors' average PPS has to do with your original question of how wave has avoided bankruptcy.
And while yes, wave has never shown a profit to date that is changing and perhaps rather soon. I suggest you do a bit more research and I'll ask a question: Do you think userid/password will be around in 3-5 years?
I think because wave has avoided debt while keeping current where the market is heading. But don't trust me, do your own DD. Of course you didn't mention the price is up almost a ten bag from the recent 0.40 low. I guess it's where you buy and sell.
Regarding the numbers, specifically the expenses, the recent announcement was quite clear...
"...While still in the formative stages of the trusted computing market, Wave's strategy is to invest as actively in R&D and sales and marketing as its revenue growth will allow."
Also, I still believe SEDs are the lynchpin to the whole thing. My new company laptop was ordered today, it is a Dell but no SED. Next time I bet my boots it will.
Rick, I think it is reasonable to hear of incremental revs and am looking at any SED discussion during the CC to be significant. SED sales aren't ubiquitous, yet, but I believe will become the standard sooner than later. It seems to me that all the data breaches I read in the media would have been prevented if a SED had been utilized.
With that said I don't expect a huge increase in revs from SEDs for Q4. But because their value is so very high versus cost / performance I will be listening closely for Q1 guidance on the subject.
It would be nice if SKS throws a grenade at the shorts. It may come in the form of improved SED adoption. If there is a big news splash it would light the fuse given the high short %
JK57, I don't think a PIPE is coming shortly or ever again, though I have been wrong many times. Wave has revenues that have been increasing substantially for many quarters, and while they may not post a positive eps next CC the cash flow is rising nicely.
The short interest is another story...I would like to say it is nothing more than someone betting on another horse in the race, that the short side adds liquidity to the market, etc etc. I do think the SP has been maneuvered in the past. However, in this circumstance, I think it is nothing more than those betting against the overall market given the incredible goings on overseas.
I view these 'media' outlets as nothing more than entertainment. No real journalism, no real substance other than to create buzz for their own brand. I hold the same opinion for other non-financial outlets, e.g. Rush, Huffington, O'Reilly, all entertainment and nothing more. Real journalism is long gone.
I feel like this watched pot is beginning to boil/eom
Good PR today. I like some of the comments:
-dissatisfaction with software-FDE
-installations have gone "seamlessly,"
-stronger security and faster deployment times -- 24 hours faster
As I recall this is the second healthcare vertical wave has announced the customer name. It brings to mind many CCs ago when SKS said the goal was to make a breech into a market and send the troops through the line.
A 'liaison' at Dell introduced SEDs...a fair bit of understatement. IMO the sales professionals at wave are connecting the dots and closing deals. I suspect many SB partners will be doing the same to protect patient info as a result of this PR.
The HAP.pdf brochure could easily be modified by Wave for use as sales collateral. It's sweet to see just how much they are in alignment.
May have been posted. I wonder how pervasive the thinking is "...but may dismay law enforcers" and how that may be slowing adoption of full disc encryption, and the entire trusted computing technology for that matter.
http://www.chem.info/News/Feeds/2011/02/topics-alternative-energy-self-encrypting-discs-will-lock-down-your-data/
A new way to protect digital secrets promises an end to accidental leaks, but may dismay law enforcers
IN JUNE 2009, 45,000 people linked to Cornell University in Ithaca, New York, suddenly had their privacy compromised. Personal data including social security numbers of students, former students, staff and faculty were exposed. But this was no high-tech hack - all of the information was contained in a single stolen computer. Had the data been safely encrypted there would have been virtually no risk, but typical encryption methods require specialised software that few are willing to invest in.
Computers are usually protected by a password stored in the disc's operating system, such as Windows or Mac OS. But the data on the disc itself is not protected, so a savvy technician can sidestep the password protection and access the information.
There is a solution: hard disc and flash drive manufacturers have begun distributing storage media that automatically encrypt data as it is stored and decrypt it when it is read back. With only a password required, the need for special security software is eliminated. Within a year or two, researchers say, all hard discs will be protected using this method, known as full-disc encryption.
Many businesses and governments use software-based full-disc encryption to protect against such intrusions, but that requires installing software above and beyond standard security packages, which are geared towards defending against viruses and online attacks. Even then, such encryption software can be difficult to use effectively, as a user must specify which files need special protection.
Self-encrypting devices instead pack the encryption process into a chip on the disc or drive. Everything on the disc - not just the operating system, but file directories and all of the files themselves - is automatically encrypted and can be accessed using a conventional password only the computer user knows. Anyone trying to access the disc without the password would have to contend with protection that rivals 128-bit or 256-bit Advanced Encryption Standard keys, which are virtually unbreakable.
"Hardware is faster than software, more reliable and harder to hack," says Simson Garfinkel at the Naval Postgraduate School in Monterey, California.
Of course, if the password to a drive protected in this way is lost, the data is essentially locked forever, making it a very unforgiving system for everyday consumers. Still, manufacturers including Samsung, Fujitsu, Seagate, Western Digital and Hitachi have all recently announced plans to begin producing self-encrypting media.
Government agencies will likely be their first customers: between 50 and 60 per cent of US-government laptops are currently unprotected by specialised encryption software, says Jon Oltsik, an analyst for the Enterprise Strategy Group, an IT and business strategy firm based in Milford, Massachusetts.
Such devices becoming widely available to all will likely prove to be a massive headache for law enforcement agencies, because their investigations often depend on recovering stolen or illicit information held on the computers of suspects.
Privacy pays
Since 2005, over 500 million electronic records containing sensitive personal information have been lost in security breaches, including many from private business, according to Privacy Rights Clearinghouse, a non-profit consumer group.
Missing information can mean lost revenue, public relations disasters and law suits. And US law require businesses to immediately report any computer security breach, adding to the expense. "Safe harbor" laws in 45 states protect companies from such exposure, but only if they take measures to encrypt their data, making it likely that businesses will be among the first in line for self-encryption devices in the US.
FWIW, I too, as of last run up and auto announcement, have told a few work friends about wave. I haven't done so in several years. It's easy to sell wave when I describe device authentication versus user identification. "Do you log onto your cell phone everytime you turn it on?" Of course not. "Do you log onto HBO when you want to watch a show?" Then why should it be any different with your PC?
my quick and dirty calculations figure about 50 cents in share price from these levels for every $1 million reported, given the high margin and mid P/E range you listed below. It should make for a great year.
Happy New Year to all.
Agreed, wouldn't want to be short. I estimate a squeeze could get legs in the ~$4.40 range as that would be 20% from $3.60 rebalancing mark. Interesting the customer was not mentioned by name but with their full committment it should be only a matter of time before we can nail down the customer with certainty.
Fly Fisher, is it reasonable to consider the HP offerings as a defacto bundling agreement, also while considering HP sold wave content as per the 3Q CC?
Observeriiii, keep the letters and cards coming. These kinds of stories are delicious. I don't know which is my more favorite part, where the owner of the data promises to do a better job next time or when they offer a year of free credit monitoring. The good news in this particular case is that there were so many records involved that the bad guys may not be able to use them all.
Bottom line, would love to know what this is going to cost the university.
The Gawker hack is being discussed on PBS evening news right now. Gawker has 'apologized profusely' for the incident. Maybe they'll try real hard next time to stop a hack.
Dice, well said and it probably could be GM, if announced. However, I tend to think the customer is Ford. Of course I have been wrong many times before. Either way it could move other deals in more quickly as other prospects see a large corp moving towards wave.
OT: NPR just reported this 'seminal' event on their evening news hour. It has been noted earlier, perhaps on this board.
http://blogs.mcafee.com/mcafee-labs/u-s-based-internet-traffic-redirected-to-china
Looks like the same story. And to think there is stuff to stop all this.
I still find it amazing that these type events seem to be quickly forgotten. Bolds are mine.
http://www.pcmag.com/article2/0,2817,2370013,00.asp
The Manhattan U.S. Attorney on Thursday announced charges against 37 individuals for their roles in cyber attacks that logged keystrokes to help the criminal steal $3 million from dozens of U.S. bank accounts.
The cyber-attacks, using malware known as the "Zeus Trojan," started in Eastern Europe. E-mails were sent to computers and U.S. small businesses and municipalities, and if opened, the malware embedded itself in the victims' computers and recorded their keystrokes. Those keystrokes were used to capture bank account numbers, passwords, and other online security codes.
Hackers then used the personal information to take over peoples' bank accounts and transfer money to accounts set up by their co-conspirators. These accounts were set up by a "money mule organization," which recruited people in the U.S. on student visas to set up bank accounts using fake passports. Once the accounts were set up, and the money was transferred in from the victims' accounts, the mules forwarded the cash to the scammers' bank accounts – many of them overseas.
All told, the scammers made off with $3 million.
N.Y. Attorney General Preet Bharara said 37 defendants have been charged in 21 separate cases. Ten people were arrested early Thursday, while an additional 10 were previously arrested. Seventeen people are still being sought in the U.S. and abroad. The defendants charged in Manhattan federal court include managers of and recruiters for the money mule organization, an individual who obtained the false foreign passports for the mules, and money mules.
"The digital age brings with it many benefits, but also many challenges for law enforcement and our financial institutions. As today's arrests show, the modern, high-tech bank heist does not require a gun, a mask, a note, or a getaway car. It requires only the Internet and ingenuity," Bharara said in a statement. "And it can be accomplished in the blink of an eye, with just a click of the mouse. But today's coordinated operation demonstrates that these 21 Century bank robbers are not completely anonymous; they are not invulnerable. Working with our colleagues here and abroad, we will continue to attack this threat, and bring cyber criminals to justice."
Regarding recent posts with possible competition for wave, I welcome it. This trusted computing market that is now underway would be well served by more companies entering the arena bringing forth more awareness, in general. I trust that wave will thrive with its technology and relationships.
The lack of recent announcements is, as others said, is better than bad news and perhaps an indication of wave's focus on transitioning the many pilots into implentation. I very much hope that management is actively working to close a formalized HP deal that will be the next PR. And in the meantime it seems to me the esign business is developing nicely with good leadership.
Ciao!
As I recall business with HP is being driven by HP customers pulling the demand. Wave has had an informal arrangement with HP for some years and perhaps SKS made the hire before the final 'deal' is made to help improve the overall deal. Regardless, I see the newly created sales position as a tremendous positive. I expect the day when an HP deal is officially announced to be a multi-million share day.
I expect an HP deal eventually. I'm wondering about the next SED deal, say with Western Digital.
Ciao!
dahamster, I agree we'll see an HP bundling deal no later than late summer.
Ciao!
A few comments from the CC:
US based global customers as well as foreign companies. I presume the Mideast distribution is located in Israel but don't know that. Opportunity in Asia. It looks like the VAR chain is beginning to bear fruit. It's likely HP will formally bundle wave, brought about by customer demand, if true is huge. Diverse industry groups, many new customers, CFBE Q1. I liked the over-resourced approach to the auto manuf deal - take care of the customer, that's good management. I also like the smart phone analogy and am still amazed how acquaintenances of mine don't understand how their PC could have the same turn on logon as their phone. Watch SED deployment, would WesternDig be playing soon?
I enjoy reading the CC, for some reason it sinks in better. Thanks to unclever.
Ciao!
Thank you, a very appreciated service.
Ciao!
wavedreamer, aside from one-time engineering contracts all under a million bucks, wave has never PR'd a deal that gave guidance as to dollar volume and duration. I view this as a watershed announcement and proof in the pudding that this technology is saleable. I don't care what business the end user is in. I do care that another deal is closed shortly in another market verticle.
Ciao!