Carrot dangling by the CEO?
Illusory references?
Yes or no?
From the Q4 CC:
I feel confident not only that other large enterprise sales will happen in the near future, but we know that many of them will be based on Virtual Smart Card sales, in addition to continued sales of our Data Protection Suite which was our last recent success.
Well I’ll share with you, but I can't. Okay because for once I guess we’ve noticed until the deal is done, you are never a 100% sure. And I'm glad that we’ve had a large success on the sales side. Because hopefully that adds some credibility to the comments that I've been telling our investors that the process is working and deals are progressing through the pipeline. I’ll tell you that as I look out at our pipeline, the growth is impressive.
The percentage of opportunities in the pipeline that are based on Virtual Smart Card or TPM sales in terms of revenue is approaching the 50% mark, and that's very impressive for as we launch products. One of the reasons I guess that you know it's potentially frustrating when you hear me talk about you know the strength of the pipeline and we’ve only seen one major deal closed so far is because these are large enterprise, the sales cycle is two, three and in some cases even four quarters.
So we know these deals are real, not all of the opportunities that start will complete and close. But those that do, we’ve been tracking for not just one [inaudible]. So we know about where they are [We can’t pin our finger down exactly when they will close, but we have a pretty good idea. And we have known for quarters that they were coming. So that's why I'm glad to be able to have a sale that's been released, so you can have some confidence that we are not just trying to talk about the sales which will never arrive.
I'm probably more confident in our pipeline now that I’ve been at any point since I’ve been CEO. I am particularly pleased with the fact that we were able to make a large sale of one of our legacy products and a huge portion of our pipeline going forward including some deals that are in the final stages are based on Virtual Smart Card.
But I'm pleased that there’s a lot of new companies in the pipeline that we haven't seen before and some big recognizable names which is nice to see. So I think that answered the new or replacement part of your question. Could you tell me again what the second half of your question was?
Yeah, so the good news on that one is really both. We’ve some large enterprise partners that are bringing customer opportunities to us. We actually have a number of large customers who have seen our marketing campaigns and reached out to us directly. And then we have some cases where our sales team, through their own business development activities are talking to the different customers at trade shows or et cetera, and are generating new leads there.
So we are seeing leads, we are seeing opportunities come in, in each of those different categories that are progressing. And in fact, we are seeing those activities begin to accelerate even over where they started which is a part of the reason for my optimism related to the pipeline growth and what we see in there. Now I believe we should be and have the capability to be performing at even higher levels.
And the pressure is on our sales and marketing team to continue to improve, and increase our--not only our pipeline growth, but obviously we need to start measuring closure rates and revenue growth, and we’re completely focused on that. Did I answer your question?
I think my comment back then was that, I had about a 100 different opportunities in the pipeline related to Virtual Smart Card that we were starting out with at any stage in the development. And some of those as we have progressed have not concluded in a sale. Some of them, and some of them have and in fact when you look at you know the fact that we launched Virtual Smart Card 2.0 in July 22nd, so it was at you know in the first third of Q3 of last year.
That's about right, and that's accurate and that the deals are nearing in the final stages now in terms of the sales cycle. And I would say that the good news is on that, although some of those hundred have not been successful, you know a certain core element of them have been; that we’ve seen actually larger interest in terms of creating new opportunities going forward. I just had a sales training session with our North American sales team earlier this week.
And we walked out of that having done a little research together with several new opportunities with you know Fortune 500 companies as the target, just at the end of that one-day session. There is, because of the nature of the security threat these days, it’s accelerating our sales cycle for a number of these large companies, and we’re seeing, you know when I typically say it’s often a two, three or a four quarter sales cycle for an enterprise customer we’re seeing many of the newer opportunities on a trajectory to close on the faster end of that continuum than the slower end. In other words, we’re seeing a much higher percentage of them close in the two to three quarters as opposed to the three or four quarter part of that timeline.
Ronald Meyer - REM Financial
Are you concerned at all about the possibility of Wave being delisted now by Nasdaq?
William Solms - President and CEO
Well, I am glad you asked that question, because I'm completely unconcerned about that. And there's only one reason why I could be, okay. We received a warning notice on January 15th, that means we’ve until July 15th of this year to trade for ten consecutive days above the dollar. And based on the opportunities that I am seeing and the confidence that I’ve in the size of the opportunities that are closing, the proximity of when I believe they are going to close, I'm not concerned about that at all, and it's based upon the non-public information that I am privy to.
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