My SHM Comments:
There was a lot to learn at the SHM this year. I was impressed but I was also disappointed with some things. Overall it was a positive SHM and I came away from this happier than last year. I noticed a definite change in behavior from the Wave folks. I also had a chance to speak to Lark a bit, see the TVTonic interface, talk to Michael and Steven, as well as Bagalay and some others.
Honestly, there's a lot going on. It depends on how you feel about "trust" and "honesty" and where these roads have brought you in the past.
Steven was confident, but at the same time defensive and challenged. I asked a few tough questions in a diplomatic way. I didn't get my answers. Instead, he covered and explained and changed the tune to look more forward, avoiding a focus on the past. He explained, "what do you want me to do." ...and I agree with that, but I hope SKS realizes one thing he should not do, is set expectations with statements like "orders in hand", etc and then fail to deliver. I think he knows this now, more than anyone, and is doing his best to limit info, but keep things in the positive light. I let it go and did not feel it appropriate to push. Wave BOD members told me after the meet that my questions were very good, appropriate, and well positioned and they were happy to see shareholders ask tough questions in a nice way. I'll get into this later.
Overall, the message was clear, SKS felt the company was finally moving and revenues are on their way. Of course, it is difficult today to settle one's thoughts with a few comments from SKS, who has a history of being a bit exhuberant. So I talked to Lark. Of course, there's always a crowd, but this year, the attendance was lowered quite a bit from last year, so the crowd was much more manageable.
Lark seemed equally positive. His general demeanor was reserved, but he still seemed to carry himself in a positive manner. Throughout the Q&A, I could tell there were some things going on that were finally going to happen for Wave.
My conversation with Bagalay was the same, where he really wanted to convey the thought of success (at least break even and no more dilution) and the company moving in the right direction. I could tell he wished he could share more, but declined. He offered up the idea that we should talk next year and he felt the company will have a solid direction by then based on prospects.
Yes, I am stating that overall, the Wave execs seemed more confident than ever in Wave's prospects, but in no means am I shouting to "buy buy buy, because its going to the moon." I think Wave execs are happy because they feel Wave will be able to stand on its own two feet soon, and grow from there.
My summary:
1-Lark did ~35 press interviews with Seagate over the last 4-6 weeks
2-Seagate will make more money on the FDE than any other product
3-Seagate will spend more money on marketing FDE than any other product
4-FDE will be available "very very very soon"
5-"We agreed to answer 'very soon' (smile)"
6-Seagate bundling range from "above a dollar to below $10"
7-There is a ton of interest in the FDE
8-June 15th buy program is software only, not anything Wave
9-Government loves what they see with the FDE
10-Enterprises love what they see with the FDE
11-Enterprise upgrades going slowly, but still building
12-MSFT/Juniper announcements were very important, most don't realize
13-MSFT relationship is very important
14-EEE is not an end user product
15-EEE is an OEM level product, part of the Wave toolkit
16-EEE is going to be very important
17-OEM bundle revenues for CSP/ESC/ETSlite have been reduced
18-two new OEMs
19-one OEM is a tier one OEM
20-from the Wave PPT slide, we *think* it *may* be Acer
21-Lenovo will not bundle Wave any time soon
22-Lenovo recommending Wave for all TPM-needs (3rd party sale)
23-HP documentation specifically recommends Wave
24-HP not coming on board any time soon as a bundle
25-Gateway ramp up is just starting
26-Intel ramp up is a platform based program
27-Apple will build their own software tools, but Wave thinks eventually they may have to enlist Wave's help
28-Hitachi wishes to develop their own, but are struggling
29-all storage companies know Wave
30-NTT has forecasted sales for Q3 and Q4, but SKS is not expecting it
31-NTT has been pushing TPMs and security but it is not their core business
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