Replies to post #207543 on Wave Systems Corp. (fka WAVXQ)

[tkc]

Rick5, yes I think SED sales grew to 100K+(not including those from the "new" auto deal)in Q4. Remember that total billings for Q3 was flat compared to Q2. In STX's 2/14/11 PR stating they had reached the 1M milestone of SED sales, that states "Seagate enterprise SED shipments have tripled over the past two quarters, while the company's laptop SED shipments have doubled in each of the past three years."

STX Laptop SED sales. I'll assume 60% of that 1M were to laptops or 600K. They doubled in each of the last 4 yrs. 2007 = 1x, 2008 = 2x, 2009 = 4x, and 2010 = 8x. So, 15x = 600K. 2007 = 40K, '08 80K, '09 160K, and '10 would be 320K. These numbers fit pretty well w/ what I've been using. Also, the new auto deal in this Q was, I believe, for SEDs. Now,if SED sales continue to grow - and they should if Gartner's prediction of near ubiquity by 2015 - then pretty soon they will contribute serious $ to Wave.

[Chowder]

Rick, I think it is reasonable to hear of incremental revs and am looking at any SED discussion during the CC to be significant. SED sales aren't ubiquitous, yet, but I believe will become the standard sooner than later. It seems to me that all the data breaches I read in the media would have been prevented if a SED had been utilized.

With that said I don't expect a huge increase in revs from SEDs for Q4. But because their value is so very high versus cost / performance I will be listening closely for Q1 guidance on the subject.