Wave Systems Corp. (fka WAVXQ)

[barge]

I just got back from the RSA. Steven Sprague and Lark Allen were both present and wearing their WAVE shirts. I spoke to them for an hour or so. I'm going to be brief because I've had about 5 hours sleep total in the past couple days. Everything told to me is public info; as it should be. But some of the information help turned on the proverbial light bulb atop of head!

Folks, when this Longest Strip Act in the History of Investing finally TAKES (IT ALL) OFF!!! It will be so damn orgasmic, that all WAVOIDS will end up with vocal cords potentially seriously damaged by their sustained screams, screechs and yelps!!!


1. It was the first time I met with Lark Allen. As Helpfulbacteria has reminded us many a time: Lark is truly a class act. Really!!! As for Steven, well, mix genius, knowledge with primordial passion and sometimes a Trusted Empire surges up to conquer all from seemingly out of nowhere.
2. Embassy software is integrated into the Dell Enterprise PCs. And by integration I mean this: In order for the user to activate the Dell Smart Card or biometric the TPM must be activated! That is to say, the TPM with EMBASSY software is a necessary prerequisite to activate the Dell Smart Card and the Biometric. You want to use your Dell Smart card? Guess what? You need to activate your TPM! Same goes for the Biometric! This blew me away for this obvious reason: Users understand and will activate Smart Cards and Biometrics. Users do not for the most part understand TPMs which helps explain the low number of TPMs that are actually activated. But with DELL, integrating the TPM with the Smart Card and Biometric THERE ARE ADDED TWO POPULAR AND NECESSARY PATHS TO THE TPM: The Smart Card path and the Biometric path. And of course, once the TPMs are activated on the DELL PC, then WAVE will have its opportunity to provide TPM applications to the user.
3. The same is true with the Seagate Momentus. And the potential here for revenues is really quite staggering. You want full volume encryption? Guess what? You must activate the TPM on your PC! Period! PLUS!!!! The user will need to connect to an Embassy Trusted Server in order to have Key Recovery and Backup. Of we all knew this: But the light bulb that turned on for me was the ADDITIONAL AND POPULAR PATH to get the TPMs activated. That is: the user is interested in getting his hard drive have to full volume encryption, the user is not interested in TPMs per se. But guess what? You want full volume encryption: You need to activate the TPM! You want to store and recover your encrypted content? Guess what? You're going to need to download additional Embassy software and hook into an Embassy Server! And SEAGATE MOMENTUS WILL BE LAUNCHED EARLY THIS SUMMER! The potential sales volume just for Seagate is about 4 times that of Dell. And WAVE has been working cheek to cheek with Seagate on this for 3 plus years! And guess what? Talk about a potential KABOOM!!!!!!
4. TPMs are flooding the market! Period. End of story. WAVE is the only player that provides an Interoperable solution. I asked when could we expect a "FLASHPOINT" of clear and unequivocal evidence that a veritable TPM-led Sea Change in computing security has finally arrived? He didn't miss a beat: The 'FLASHPOINT" happened months ago. Except no one noticed. But that's about to change.
5. He brought up Xbox, without my prompting. He stated it didn't matter if the security chip inside Xbox is a TPM or not. It doesn't matter. The Xbox security chip can be easily binded to connect to another TPM embedded device. Security chips need not be TPM certified in order to communicate to another TPM chip. The key disadvantage though is that the security chip will NOT be Interoperable.
6. I brought up Apple and their use of the TPM and Intel chip. I asked wouldn't it make sense for Apple to consult with the only real TPM experts(ie WAVE) before Apple dived head first into the TPMs? Isn't Steve Jobs betting the company on Intel chips and TPMs? Both Steve and Lark immediately denied and did so strongly regarding any connection between Apple and WAVE. Lark said that Apple is working on the TPMs with Intel. But what does Intel know about TPMs, I asked. Lark didn't reply. I then asked how come Apple and Wave, and one other tech company called C-Guys, are sharing the same rather smallish two story building in the Stevens Creek Center Building in Cupertino? Both immediately launched into "Just coincidental. A pure coincidence". There protest of denial struck me as high octane and not believable. But of course that is just my opinion.
6. Steven Sprague appeared to be quite frustrated with the share price.

I spoke to the both almost to the point of the RSA ending for that day. On Thursday, RSA exhibit forum closes at 3 PM. So I missed the exhibits. I did go to the Stevens Creek Center Building when WAVE is located and I took a picture of the sign in front which lists the tenants of the Building: WAVE, APPLE, and C-GUY.