Wave Systems Corp. (fka WAVXQ)

[rachelelise]

TKC

I wouldn't take things so literaly. The burn rate is approximate and will change depending on the support needs for products sold and to some degree their ability to finance an increased investment in sales and R&D. In the short term, you should consider whether their current costs will grow meaningfully if Dell takes their existing software on CD and sell more copies of ETS. I would think the cost impact would be minimal and therefore almost 100% of the revenue would flow to the bottom line. I've forgotten my accounting here so I'm not sure how the current costs associated with trying to sell the product are treated when the product is actually sold (do they move from some generalized account into COGS when there are actual sales).