Replies to post #236777 on Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

hi dig,

the thing i am curious about is embedded income. low price but high volume.

right now, embedded income is the bedrock of wave's inflows. it is fairly predictable. it rewards development work.

i am wondering if solms is looking to expand it some.

or alternatively, if he is able to release all of these oem prs because he is giving away wave's development free of charge in the hopes of getting other opportunities later.

it seems to me this is the most important variable for wave's cash flow in the near term. is the dilution going to be significant going forward? or will it dissipate?

your dell vs hp model is the near term issue likely to make the most difference. unless, of course, some huge order descends along the lines of gm. but those sorts of things aren't worth thinking about as they are completely ad hoc.

[tkc]

Dig, you and Alea have it about as clear as can be as of now. Licensing billings have been on an ever so slight uptread. Don't you think Q2 will see some Samsung inflow? As Wave has become better known, more finanacialy stable, under credible leadership w/ proven salespersons-coupled- w/ the ever so obvious need to enhance data security Wave's licensing billings should continue to grow. At least I think that. I expect that even w/ Feeney's severance Q1 should only have negative cash flow from operations (exclude financings)of ~$2M or so. And Q2 to be better yet. Thus I am not surprised the SP has stablized where it has today. My Wave positivity index has been growing incrementally w/ each change since the Solms appointment.