Wave Systems Corp. (fka WAVXQ)

[go-kitesurf]

Software companies do not have to deal with material inventory. Therefore, a 25% expantion of business to someone that manufactures capital equipment would require a 35% investment into inventory for each inventory-turn they would experience per year. So if they turn inventory 100 times per year like Toyota, you're looking at massive expenditures to have the materials to expand production. Wave doesn't have this requirement which makes it much easier for them to expand and react to vertical markets.