Shareholders Meeting.
Just came back from the SH meeting with the following impressions:
1. SKS still upbeat with his vision of WAVX target, i.e. a share of approximately 1 billion computers with which to sell services.
2.SKS very cautious about estimates and referred to the IDC data (optimistic for 2005 and light for 2006) and Dutton's estimate as a good guess.
3. Breakeven in approximately 12 months! (I actually missed this one trying to take notes but I think this is correct per my discussions after the meeting)>
4. SKS was his usual self, articulating the vision and being very upbeat -- more of the usual stuff that we heard at the CC.
Intesting points that he did mention and I thought relevant:
5. 3000 Dell salesmen were trained last month on TC value. After being questioned on this, he stated that this is only the beginning and that once these people see their $ increase, then sales momentum could occur.
6. In the last several months, since Dell, WAVX has had the phones ringing off the hook. "Never been so busy" TC is gaining identity.
7. WAVX and Infineon have pulled so far ahead of other vendors in the TC market. "It's a 2 horse race with WAVX and Infineon way ahead!"
8. Infineon, while vertically integrated, does not work across multiple OS. WAVX does (but we already know this).
9. WAVX did 20 product builds last year wrt interoperability. SKS felt that Infineon would need about 1 year effort to match WAVX's ubiquity.
10. Government business? TCG Panel presenting this Thursday in Washington. This year, ~500 people preregistered. Last year there were only about 30.
11. WAVX insiders are very cognizant of problems with buying stock and then being slapped with insider trading accusations. SKS said that if he did by stock, he would probably have to return any profit because of this problem. He did state that they were aware of pending deals that could seriously complicate this situation, but I don't know if this was a hint.
12. WAVX employees and the board are all exercising their stock option privilges which is, perhaps, their one legit avenue to ownership.
13. Forgot to mention that for the proxy voting, ~76 M votes were cast. ~73 M and ~73.5 M to elect the board and increase the number of shares, respectively. Significantly, only ~10M votes were cast for the ratification of the stock option. Rather significant and, perhaps, in contradiction with the previous item 12 above.
14. WAVX has won a number of accounts away from Infineon. SKS said that WAVX probably outshipped Infineon recently,
15. Broadcom had licensed Infineon, but WAVX is replacing them. WAVX is even making sales calls with Broadcom.
16. Had the honor to meet Weby and R&R.
That's about all I can handle for tonight. Had to take the wife out for the annual "dining experience" after the WAVX meeting and it cost me nealy 200 shares of WAVX. I don't know if it is inflation (wrt the dollar) or deflation wrt to WAVX. All in all, the vision, market and product is there. It is only about traction in earnings, IMHO.
Viva Las Vegas!
