Wave Systems Corp. (fka WAVXQ)

[dig space]

player/mig, rev growth

While the revenue has been increasing nicely, the expenses have been increasing faster.

That is not entirely true. In the last 8 Qs expenses have outpaced revenues in 4 of 8, the opposite being true in the other 4.

if one takes the sum of the last 8 Qs, then exps have outpace revs, if one takes the sum of the last 7 Qs then the opposite is true, over the last 7 Qs revs have outpaced expenses (but not eclipsed them).

Its much more of a flipping back and forth Q by Q than it is any notion of exps growth durably outpacing rev growth.

On the exp growth vs rev growth front, Q4 will come in at a neg as adding Safend (whose expenses exceeded revenue) will push in the loss direction for this first quarter of consolidated reporting.

The goal has been to maximize top-line growth with balanced cash-flow, and while 2011 will book as balanced cash-flow (roughly) they are to due ink a large order to maintain that cash-flow balance (hence IMO the ATM).