Wave Systems Corp. (fka WAVXQ)

[1stnflight]

Ramsey: STM Q2 Deferred revenues?

Why would they be deferred? Deferred means Wave received the cash and has not fullfilled an obligation to STM. Like if STM was prepaying Wave for a future service like you would to a publisher for a subscription. In that case some revenue would be recognized periodically over the service/subscription period.

If Wave has fullfilled it services/obligation, in this case providing a master cd and right to ship Waves ESC/CSP with STM TPM 1.2, revenue should be booked in Q2 or the actual date STM TPM 1.2 with Wave ships. As far as cash I do not know the payment terms so it may not be on the Balance Sheet @ Q2E 6/30/05.

Have the terms with STM been disclosed?