Wave Systems Corp. (fka WAVXQ)

[TraderJoe812]

Hi cslewis:

I was wondering when you state:

"...where we want to be."

what you mean by that in terms of cash flow? I'm pretty sure you're referring to revenues, so what total revenue number do you expect Wave will be generating by the time they exhaust the $15 million? Based on the current burn rate, the money just raised on its own, should be able to maintain operations to the end of Q1 2008. However, revenue throughout this period should ramp-up and be able to slow the exhaustion of the $15 in the bank. Therefore, "where we want to be," is a very pertinent statement referring to the revenue needed for the company to operate on its planned business model with the cash flow being generated at the point you want to be at. So, just curious, realistically what do you estimate that number to be for Q1 2008?

Would anybody else provide me with their estimate for Q1 2008? I'm sure estimates have been done based on pure straight-line computations; however, there are many developments underway which would render a straight-line ineffective. Would you kind folks provide me with some figures and corresponding notations (i.e. - FDE sales: $3,000,000 etc.) to aid in our overall analysis.

The bottom line is that Wave's position is pretty nice at this time in the industry from a positioning perspective. Execution on this specific positioning is key right now and there is much doubt about SKS's ability to carry-out these initiatives. Consequently, the next 3 quarter's execution on specific iniatives (FDE for example) with line-by-line growth analysis of each endeavor will determine whether investors cash in their chips or stay invested after Q1 2008. Basically, if the numbers aren't there after Q1, investors will pull away from the table, at least the investors I know. So, that is why I pose this question. Will anyone provide me with this type of detailed analysis or should I just refer to the Dutton report as my sole reference? I really would prefer to have some estimates from sources other than a firm paid to produce a report.

Thanks in advance,
Joe