Replies to post #238663 on Wave Systems Corp. (fka WAVXQ)

[Bull_Dolphin]

Zen, They have to do that much business each quarter to be CFBE.

[tkc]

Zen/Bull, I don't think GM type orders are the answer, although they would be great and extend the runway. They need broad sales which need to grow Q/Q. Forgeting about margins for now, assume they remained at 93%. If Q 3 new sales increased to $5M they'd burn ~$3.4M. Then in Q 4 new sales increased to $6.25 they'd burn another ~$1.5M. In Q1 if new sales go to $7M the burn would only be $.75. So for those 3 Qs the total burn would be ~$5.7M and they'd still have a couple $M left. We know there is a need, the market is there. If the products are good and the salesmen sell this is doable. Once a number of early adopters are happy and there is proof of value incentives will end and margins should return. Zen thx for the laugh, mine were just about the reverse.