Jake's dad, let's look at some facts. DELL account for 80% of revenue in 2010, 62% in 2011 and 55% in 2012. The revenue for the company as a whole rose quite nicely from 2010 to 2011 in spite of the percentage differential but I believe that was due to some deferred contract earnings from 2010.
If you look at the revenue shortfall between 2011 and 2012, the large majority of that was DELL. We had the reworking of payments to Wave from DELL and DELL acquiring Credant in 2012 which probably had a huge bearing on this figure. Now we see this new DELL announcement which dosen't seem to bode well for Wave. Look at the revenue track.
Now we see the DELL revenue declined another 13% in Q1 2013 5.8M in revenue compared to 7M Q1 in 2012. The 13% decline accounts for nearly 75% of the difference YOY comparing quarters. In 2010 DELL averaged nearly 5.21M per quarter, in 2012 that declined to 3.9M, If the revenues are flat for the year and compare to 2012 and the 42% holds that means about 3M per quarter from DELL, if the 1stQ revenue is the new normal and the 42% holds DELL only adds 2.4M per quarter-and thats if this announcement dosen't change a thing.
I believe this DELL announcement will send the percentage even lower and it looks like they haven't been able to replace some of the other ancillary revenues coming in.
I would probably guess you would be looking at a drop in the neighborhood of around 20% from 2012 from DELL which probably means revenues for the year in the neighborhood of 18,750,000 to just under 20,000,000 for the year providing they can bring in some new business to prop up the losses in revenue not exclusively DELL.
