Wave Systems Corp. (fka WAVXQ)

[waveduke]

Alea,

the problem with bundling is the fact that it is not a business on its own. If you sell to the middle man and they don't sell, it will only be an income stream for the duration of the contract. Walmart will not continue to stock the shelves with product that is not moving.

No doubt bundling has represented a stable revenue source for Wave, but it clouded prior management's thinking. "They don't get it" = run for the hills. I am sure Bill would gladly take a nice reliable income stream, but I do not think he would be naïve enough to believe this would be enduring without offering the OEM valuable differentiation or parity with other OEMs. Bundling royalties are a means to and end with a nice sweetener.