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ExPatriate57

10/23/10 12:35 PM

#200370 RE: internet #200360

Internet, let me first take a deep breath and give you benefit of the doubt that you're asking these questions in the spirit of a rational discussion of facts and opinions free of any personal bias.

First, I should have probably stated that my opinion is that the Nov 8th report is "paramount to the direction of the share price Over the next 60 days".

Now that I've clarified that, Let me address your points:

First, Revenues were, in fact, ~6.4 million for Q2. That provides a basis for our discussion.

Revenues are generally broken down into maintenance and new sales.

I haven't seen any evidence since the last CC that significant bookings have occurred. calendar Q3 is typically a "light" quarter for IT security sales in the private sector.

Given that, my best guess, and it's nothing but a guess, is that revenue will be shy of 7 million - let's say 6.7 million. Expenses will rise modestly.

The wildcard is government sales. I don't believe Wave has experienced any significant government bookings but I believe -and this is important - government sales will be the eventual driver of this stock.

Secondly, while peer performance would be an excellent indication, Waves pure peers are even more difficult to gauge as most, if not all, are private entities who are even less transparent with respect to sales information.

Finally, I disagree with your premise that the market values companies 6-12 months down the road. The market evaluates stocks differently based on a wide variety of factors. That's why you'll see a utility valued at a P/E of 10-15 and a high growth company like Akamai near 60.

Also, Wavex isn't synomomous with Trusted Computing! Certainly Wave is a leader, if not the leader, but there are other options.

I'm guessing that Wave reports -.01. But that's strictly a SWAG, and I hope I'm wrong.