Wave Systems Corp. (fka WAVXQ)

[RootOfTrust]

Hello there tkc...

"Upgrades may be where the potential is but it's chewing up all the money."

Right...upgrades= Embassy enterprise software licensing e.g. ERAS.

Safend is all enterprise software licensing as well.

"With Dell rev going down, that makes Solms job even tougher. He'll have to cut and redeploy. he'll need to increase rev and seek funding to stablize the finances soon."

My theory is the ATM continues to be used, not necessarily to meet each end-of-the month expenses, but to bolster the balance sheet past any ongoing demand to make expenses. My guess is that the SKS sales organization had been losing some of their pipeline to weak finances and the dimishing credibility that goes along with it. Having some extra cash on hand would certainly help Solms with credibility moving forward in building new pipeline as well as hopefully restore some of the business that either had been lost or was holding back.

For sure Solms inherited a pipeline, what we don't know is the complexion of it. Sandia Labs had to be there before he arrived unless they had a short sales cycle.

Part of Solms strategy per the earnings call is to implement enterprise software sales industry "best practices" which hopefully will help build the pipeline and close existing business in it better than what was happening under the previous management.