I just listened to the CC. The sudden spurt of negative banter is beyond me.
I was a little disappointed by the Seagate FDE expectations and the possibility of only 1 million drives shipping in 2007, and the fact that breakeven in 2qrt was not be from bundling fees alone. The rest of the call was laced with multiple positive developments-Enterprise adoption is clearly starting and in a big way, he was very confident in closing sales and in the pipelines increasing, a large NY bank and fortune 50 customers piloting.The Govt/military situation was is stii a little cloudy, however in my opionion sks seemed to be saying that the govt made HP test some machines to make sure they were working as expected with Waves software.Now why would that be needed.(same reason their demanding machines with TPMs, their going with Waves security suite of products, its not if its when)SKS implied that the only way they dont breakeven in Q2 would be because another large OEM deal landing and having too add to staff and sales expense, what might he be expecting.
Comments about NTT and the Dell sales staff just gettiing into gear sounded good to me as well.
The second to last analyst was a joke, he was trying to create doubt in the company and management, but instead just opened the door for SKS to show what a good spot they actually are in.I thought it was very interesting that SKS discussed the possibility that online trading could actually be shut down due to current security and password managment issues. The callers comments about RSA and the cost of doing business, were pointless and out of touch.
I am still waiting for some news that going to get the market to undertand
the potential cash cow this company is about to become. I think its closer than most people think.
LP
