Replies to post #173650 on Wave Systems Corp. (fka WAVXQ)

[rwk]

And if the volumes are doubled, then revenues are quadrupled. A more likely scenario over the next 6 months in my opinion. But it's just my opinion, just as what you wrote is yours.

[hnstabe]

waxwizard, as you write, volume cuts are an important factor. In my attempts at breakeven analysis I had already reduced Dell shipments by 1.5 million (23%)units for 4Q. With consideration for that volume reduction included, today's news of software fees increased by at least 100% retroactive to Nov 1 should push Wave over the top for CFBE in 4Q. It still does depend on whether cost reductions brings the Operating Expense down to the $6.0 million level for the 4Q. Another variable is if Wave uses some of their funds to reduce some of their liablilities like Accounts Payable. If so, then CFBE can be pushed out to 1Q09, which is where SKS has hinted. Then, in conjunction with the above I calculate that "New" Business revenues will come in at $4.1 million, which is a 78% improvement 4Q over 3Q. No matter which way Wave accounting moves things we can all breathe deeper.

Of course, all of the above is IMHO. PS. I wonder what "increased by at least 100%" really means? Doesn't seem acceptable to me to write that in an 8K.

hnstabe