Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

4xcsl, where do you get $43/seat for ERAS including the first year maintenance? That's way lower than numbers I ever heard.

Normal pricing on ERAS is $60.

Annual maintenance runs 25% of ERAS price ($15/yr. based on $60).

First year of maintenance is paid on delivery of ERAS license bringing the total to $75/seat. Assuming laptops are used for three years, customer would buy the annual maintenance license twice more (for second and third year respectively of the laptop's planned life).

Now, the above prices are give and take depending on volume. The auto maker order may be more discounted than above, but if you run $75/seat to the $1.9m it's just north of 25k seats.

So, assuming the first laptops delivered in Dec. 2009 are used for three years, the $15 annual maintenance license is paid two more years (Dec. 2010 and Dec. 2011). That's why the PR has the last annual maintenance licenses being invoiced late 2012/late 2013 (that would be for the second and third year maintenance licenses for the last order of ERAS licenses delivered late 2011).

The orders include approximately $1.9 million for software licenses (and annual maintenance) delivered and invoiced at the end of 2009; approximately $2.25 million for additional software licenses (and annual maintenance) to be delivered and invoiced at the end of 2010; approximately $1.07 million for additional software licenses (and annual maintenance) to be delivered and invoiced at the end of 2011 and for annual maintenance to be invoiced at the end of 2012 and 2013, respectively.

http://finance.yahoo.com/news/Wave-Receives-57-Million-in-iw-2693525126.html?x=0&.v=1