Alea, I think erosion is a good term to use. As I believe Bill stated, the decline will be related to no agreement on new SKUs. Perhaps former leadership viewed OEM royalties as an end sale and primary rev strategy. It was dangerous to be addicted to Dell. The real revenues are related to actual use of the product.
"The November 2011 amendment to Wave's software license agreement with Dell, among other changes, extends the term of our software license agreement with Dell by five years to January 18, 2017. Additionally, the per-unit royalties that Wave receives for each Dell PC model shipped subsequent to November 1, 2011 with Wave's EMBASSY Trust Suite software were decreased by approximately 25%. The amendment also provides for an additional per unit royalty equal to 285% of the base royalty for notebooks shipping with both a universal serial hub module and at least one internal authentication hardware solution such as a fingerprint reader or smart card. The amendment also increases the per unit royalty rate by approximately 33% for each trusted drive unit shipped after October 31, 2011."
