Wave Systems Corp. (fka WAVXQ)

[Fullmoon]

From Taglich:

Estimate Analysis: Top and bottom line results fell short of our expectations. Management stated that based on
observed trends the Company’s first quarter results are likely to be seasonally slow. Also, the Company stated
that sales were only modest for two specific revenue generating areas – full disk encryption drives and enterprise
upgrades to full license software seats. Operating expenses were approximately $0.531 million higher than our
expectation. The shortfall in top line results and higher expenses were the primary reason why the net loss was
approximately $1.045 million larger then we had anticipated.
Rating: Currently, we are maintaining our Speculative Buy rating on Wave Systems.
Risks: Please review our latest research report (April 15, 2008) for a summary of the principal risks underlying the
stock.