2Q 2007 conference call highlights
I typed these as SKS spoke during the call. I make no warranty as to the absolute accuracy of these notes….I simply typed what I thought were interesting or significant statements during the presentation and Q and A. Please offer corrections, if needed.
SKS’ presentation-
Seagate-
The audit function of the FDE drives will be very important as we move forward-it will drive sales of the ERAS system because using ERAS can provide the audit trail that federal investigators will want if data at rest is lost on a laptop.
Over 1000 machines with FDE were ordered by end of 2Q
Wave has shipped about a couple of dozen customers an evaluation kit for FDE with ERAS. About 80% of these so far have either begun purchasing FDE with ERAS or have indicated that the system will be purchased in the future.
Lots of customers are asking where they could buy drives to retrofit their current machines for FDE.
Juniper/NAC-
Wave sees Windows server 2008 will be a huge motivating factor in causing owners to turn on their TPMs. NAC technology is built in to Windows Server 2008.
We probably won’t see first revenue from this area until after a couple more quarters.
Dell-
Dell is pushing TPMs more
Over 1/3 of new customer contacts are interested in using them for strong authentication
FDE is causing customers to use TPMs, some customers are then finding that ERAS makes it easy to turn on and utilize their existing TPM machines.
Government-
The Seagate FDE is not currently a part of the DARTT list of encryption products, but SKS sees this being resolved soon.
Good progress on getting Govt. entities to use TPMs, but no concrete purchasing agreement exists yet. It will take a bit of time yet.
One of the orders that has been received for ERAS and FDE has been from a government agency.
WaveExpress
Good growth in subscribers, had to upgrade server capabilities to handle it
E-sign-
E-sign has closed an agreement with EllieMae. The Wave solution won a very competitive bid process.
Customers here might be able to be announced as they purchase
4 million copies of bundled software shipped in last quarter.
SKS is still a bit frustrated that the market has not yet fully appreciated the benefits off adopting trusted computing
We should see greater enterprise adoption in 3Q
Marketing has still just barely started-now that trusted computing solutions are available that should increase
The Q and A
The list of customers on the enterprise pipeline is a great whose-who, but they all have thousands of seats, and the decision to adopt is a large one-but we should see a much larger engagement over the next few weeks and into the next quarter.
We believe NAC will be a big piece of Microsoft’s marketing of Windows server 2008.
The hope is that once a company buys FDE and ERAS for their new machines, then they will use ERAS to turn on their existing TPM machines. This will require the purchase of ETS from Wave, should drive sales of ETS
Costs increased 20% this quarter, SKS said Wave is helping develop new products using trusted computing in key management and subscriber management. The vast majority of new opportunities are in these areas, which will make new web services available.
Sales personnel are at or reaching capacity for managing accounts that they have today.
May have to add, but only if it is mostly covered by expanded sales
Major prospects are not closing quickly. SKS said he is frustrated by this, Wave has had to play a larger role in educating potential customers as to the benefits of trusted computing, suppliers sales materials are not good enough.
Prospects are remaining interested, not walking away-but are dragging their feet when it comes to purchases. TPMs benefits are still not well understood in many cases.
As soon as FDE was available, orders flowed in the door, but this is only a couple of days data. SKS has good expectations that enterprise sales will increase next quarter, but its hard to say how much yet.
A number of large prospects have just been bid with FDE as a part of the bid.
Wow- only three questioners? Dutton, SRA, and Robert I.
Let the debates begin, er, continue...
Goin Fishn
AI
