FWIW, My CC notes/comments:
Hated Q3 rev's but took some solace in the CC. If SKS is to be believed (and there is some question here re: 1) Q2 rev's in hand and also 2) his stated CC plan on how to he expects to get there) the future actually looks firmer but again, it depends on a very strong Q4 showing.
- LICENSE REV’S UP ON ALL OEM’S: Expected this even after realizing there would be a significant lag due requirement to shed old inventory and virtually no desktop units shipped. OK to good.
- ENTERPRISE: closing biz on 3 continents although in minimal quantities. These are pilots/trials. He now has to prioritize the opportunities he has due to increased quantity of candidates. Currently (as in now – Q4) working on 6 candidates with potential of 25k seats each. Perhaps we can land 1 or 2?? Of course, this would show up in Q1 or Q2 #’s. he mentioned a new OEM in EUR?? Who? This is where he chimed in where license volume customers pay <50 cents. Not a big surprise unless it turns out to be 25 cents. Progress. Good
- GOVERNMENT: Netcom. DoD wide license…blah blah. An update but nothing significant for now. But he did irk me on the part of how great it is to be a sub-prime on a winning contract team. We were before as well. What did it get us??? Expect more shows/demo’s. If we can be HISPD certified we need to attain it! we keep plugging but nothing new to report
- DATA AT REST: blah, blah encryption blah blah encryption blah blah encryption. Waste of time.
- SEAGATE FDE: starting in 07’. conservatively expect 1mm units to ship as options. What is Secude/Wave ratio of 1mm units at $3 (don’t hold yer breath), not much coin in 07. BTW, some sampling shipped out already yet we have no pricing deal in place with SG yet?? Hmmm. Nice to know the HDD TPM will have very little impact on performance and can be managed with EKTM. slow but a contract would be nice
- Vista: So what exactly does “only Wave provides authentication support, not MS???” Anyone??
- Various question comments:
o 1mm ETSL sales in Q3 – 600K in Q2. Good uptake. I expect minimum 1.5mm in Q4.
o NTT – no news.
o SG contract to close by eoy!! SG & other OEM’s same version but branded (??!!) BIG statement of commitment. I like it. They need to bag & tag this soon.
o He said enterprise upgrade prices were not volume/price sensitive and then said expect 20% discount for 10K packages. (??)
o Eff Forms rev’s <100k
o ***Q207 b/e predicated on upgrade sales – CONTRADICTION! Previously stated in hand! Ouch!
o WXP – blah blah blah
o Q207 b/e will come from 50-66% license rev’s leaving 2-2.5mm needed from upgrades. This translates into 4-5mm in ETSL sales plus ~50k upgrade seats needed for b/e. If he can sell 1.75mm ETSL units ($870k) plus >=15k (6k already in-hand) in upgrades ($675k ttl) in Q4 I would deem him to be on track.
Sorry barge. Not much on consumer front.
