Replies to post #183091 on Wave Systems Corp. (fka WAVXQ)

[jakes_dad]

Ramsey


How does Wave book TDM revenue? Is it a one time hit for $7.50 or does Wave spread out the revenue 12 months like ERAs sales?

If Wave uses the $7.50 as a one time booking then TDM revenue will be very significant revenue over the next few quarters until upgrade revenues catch up

At least thats my thinking?

thoughts?

JD

[BillyBobBrunick]

Question on refresh recycle

Assume User Fred works for The Joe Bag of Donuts Company and is given a new corporate laptop with SED today(~$7 to Wave) and assume the JBD Company buys new laptops every 2 years.

In two years from today when Fred gets a new laptop with SED, will ~$7 go to Wave again, or is this a one-time deal per user?

Since the Wave software (for managing SED) has already been bought for Fred, I would assume no?

I assume that the only recurring revenue to Wave is for the ERAS license to manage that seat?

Help me understand this please, thanks!

[Weby]

Ramsey

That is my understanding as well. Two other points. 1. Do not forget that most IT pros budget 50% for repair and maintainence. As ERAS grows there will be a continuing increase in royalties as the $25 dollar service contracts kick in. At 20% overall that would be about $10 per unit per year -- more than the TDM revenue on a continuing basis.

Secondly, The 20-30% growth has been coming from 1-2 new customers EVERY week. That's potentially a better way to gague the company growth potential as that number my jump from plateau to plateau as Trusted Computing, which is obviously, being pushed more now by the larger member, is accepted and a mainstream way of setting up one's system. That's why the gowth curve is not a straight line and 20% this quarter could be 70% in 2010. As Awk put it many years ago. Things are Good. -- and they will get even better. The days of our only customer being Papa Gino are long gone and those customers are no longer just trying, but in the adoption stage. They are the innovators in the growth curve below.