Replies to post #236832 on Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

yes, and as an outsider, there's just no point thinking about asteroid strikes as they are unpredictable.

in fact, the predictability of future embedded income ought to help with the p/s ratio.

what wave needs is reliable bedrock quarterly income. this comes from broad volume on long term contracts.

this sort of reliability will also give potential asteroid customers the confidence to buy wave's products knowing that they will be there in the long run.

it will also give wave strength in negotiations. they and the purchaser will know they are not dependent on striking a deal.

they can achieve the same thing via broadening the eras sales channel. but there, we see a step rather than a growth curve. and increasing growth would require many more negotiations than the partner channel.

nearly all of solms' deals so far look like he's making an effort to broaden wave's relationships with oems. by q4, maybe he'll have everything in place to generate $8m per quarter on a reliable basis.

[tkc]

Hi Dig, I anticipate Q1's balance sheet will show positive changes: A/R factoring has ended. C/A will exceed C/L(sans D/R) by $3.5M. CoH will be ~$4.7M. These #s are based on only $5.8M in billings with SGA down $400+K even w/ an added $750K (don't actually know what it is) in Feeney's severance. SP, if it hasn't stablized ~$1.30s, it will at least return there as I believe the market anticipates this balance sheet report. Whether it's from increased OEM pennies, upgrades, SEDs, mega sale-whatever- it won't take much sales growth to reach CFBE. With no sales growth Wave has 2 full Qs before it needs financing. Between now and then I think sales will grow sufficiently that any financing, if needed, will be done at higher SPs so that dillution, as we knew it, is history. Amen