Wave Systems Corp. (fka WAVXQ)

[rachelelise]

CPA

There are a number of entities that will be licensing Wave's products. During the quarter's that you noted, I believe the bulk would be from STM and a bit from Intel. With a new licensing agreement from Dell and the initial launch of their PCs including the Wave bundle starting in Q2, that is when one would expect a beginning contribution from them. Gateway should also begin the process in Q2 or Q3. So the apparent small drop you noted would seem to be attributable to something from STM. That could in turn be related to their customers - to the extent Dell's launch was later than planned, they may have ordered less STM chips. Also with the new Broadcom deal and Dell starting to ship, we should see some revenue from that OEM as well.

I think it is premature to see red flags now. However your point is valid if later on we can see clear trends from multiple vendors and it turns downward.