Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

Hi goin,

Harumph. I'm confused by some of your numbers.

But first - I didn't see dig as being provocative. He's explained previously he doesn't work from total populations as he thinks it can be misleading.

Okay, moving along. You say the DoD will be on the order of 4-7m seats. That's 3-5 seats per person working for the DoD. Am I missing a source for your multiplier?

100,000 contractors with 150 seats on average? 15m is a plausible number of people working in a $3/4tn US industry. But you assign 1 seat per employee in the DIB, whereas you have 3-5 seats in the DoD. Not sure I understand the reason for the difference.

I'm not sure you don't run out of people with a certain level of spending power from whom to derive income somewhere in your orders of magnitude. But maybe you expect a bunch of people to pay multiple ERAS fees, as at the DoD.

Re transactional revenue - well, in the enterprise PC space, they are in a strong position; in the enterprise phone (and the other intermediary devices) space, it will be harder because a lot of people are already on the teat; but I don't rule it out entirely.