Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

1stnflight, thanks for your helpful explanation. I think I have misunderstood deferred revenue. What you are saying is that it's payment in advance for services not yet rendered is different than what I thought. I guess I thought if there was a time lag from when STM shipped and Wave was paid, that could become deferred revenue, but per your explanation that would be accrued revenue and bookable in the same Q STM shipped.

In any case sounds like all the STM Q2 shipments become Wave Q2 revenue which is good. Btw, STM payments to Wave I believe can be considered royalties. I think Wave provided STM with a master copy of the software, and STM in turn provided one to Dell. STM's design win I believe was with Dell and not Dell's motherboard vendor. So, STM pays the royalty to Wave for each TPM shipped and Wave ships nothing.