Wave Systems Corp. (fka WAVXQ)

[waveduke]

Tiny, see link:

http://img329.imageshack.us/img329/2701/waverevenuebs2.jpg

My expectations are based on limited upgrades this year, and bundling based on Wave's presentations. For the most part these data points are principally based on instinct and as we get more data points, I will revise accordingly. Ultimately, if we experience the ramp I am communicating, I tend to believe share price will react quicker than I illustrate especially as we demonstrate upgrade potential. I do not contend with the fact that we have the potential to see reasonable upgrades from hardware based FDE this year -- if we do, everything shifts to the left. My revenue expectations are a couple of quartes out than my previous expectations and that is based on Wave's guidance changing.

I believe that actual revenue will be more volatile early (not illustrated), but this generally communicates what I am thinking. Like I have said, I have previously participated in FP&A work in my past for a multi billion dollar company. It is difficult work with proven, repeatable revenue streams and much more than an art than science when revenue is in an embryonic state and you are an outsider. FYI, I would be ecstatic with this for a growth path and beside myself if we beat it.


John