Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

Do we know the numbers for Wave's annual shipments of OEM software licenses?

I looked into it and came up with 24M from Dec. 2007 to Dec. 2008.

http://www.wave.com/news/press_archive/07/071211_ETS.asp#

6M OEM licenses/Q @ .90 is within $600K of CFBE assuming a quarterly burn of $6M. It seems Wave can now do at least $600K/Q in enterprise licensing and consulting.

Unfortunately the recession is impacting Dell's volumes, significantly reducing Wave's OEM licensing revenue, although from what folks have said the indications are that Jan. was a decent month. I have not listened to the CC yet.

My point here is that normal OEM volumes alone put Wave near CFBE, so it's first an issue of the recession lowering Dell's volumes, and second an issue of the recession challenging Wave's ability to sell enterprise licenses. Hopefully enterprise licensing will take off in spite of the recession to make up the difference in the OEM volume.

Really, the recession is bad luck for Wave along with the rest of the world. Wave is executing very well though. Got the OEM license to four times the old rate and making steady progress on the enterprise side including the government. Testing CFBE...good progress.