Replies to post #87218 on Wave Systems Corp. (fka WAVXQ)

[dude_danny]

Re: xxxxcslewis

In the scheme of things that seems to be nominal to STM, yet it warranted a PR. I welcome the PR, but from STM's perspective it just seems a bit odd to me that it was issued. I don't know what point I'm making, except that from STM's perspective the event isn't very significant, so I guess I am just wondering out loud what the purpose of the PR might be.

I guess STM wanted to get word out that they are in the forefront in this arena. They know that trusted computing/TPMs are in demand and they have the potential to make huge profits from this. The next couple of months is going to get really interesting IMO.

dude_danny

[oclv99]

XXXX, I agree with you on this. It does seem odd that they would highlight $4M of any sale when compared with their total revenue. Seems like there will be lot of TPM 1.2 news in the next 6 months!
oclv

[khillo]

They are trying to prove their lead, because Infineon’s TPM 1.2 will be available with desktop systems and notebooks starting July 2005.

[rwk]

xxxxcslewis / purpose

I wondered about that as well. On top of the competitive positioning concerns, it also occured to me that TPM's are a big deal in thier own right. While STM does $8 billion in revenue, it's probably spread over 10,000 chips. TPM's will ship in the 100's of millions in a few years. If STM can grab 30% of the market, they will have a $120 million dollar product.

[rachelelise]

CS

There are two things to consider. First it is a new product in a new market and thus it is a way to announce it is real and being sold. The ultimate size of th emarket and how it ties to other related areas (note their DVR products) may make TPMs more important than their current state.

Also I would not discount the possiblity that Wave, a better partner with them than it may appear on the surface, encouraged them to do this as a means of showing that their IP and the trusted computing market is starting. Indeed at this early stage, sales of trusted computing are so small relative to all the giants, that any PR is positioning for broader things and brand image. If it was tied to materiality, no one would ever hear of it for some time.

[rick5]

Maybe they are expecting it to become a significant market in the future and want to begin building public identification with it. 100,000,000 X $4 is meaningful revenue for even an $8B company.

[Mukwonago1 / scorpio]

The significance is that STMicroelectronic's reporting of their tpm revenue appears to be that it describes their tpm production/sales as being an important new line of business.

As for 'insignificance', an acorn will seem to be 'insignificant' unless, for you, a tree farmer, you expect the acorn to grow into an oak tree.

My God, this board needs to chill out, and to read these news items with some kind of broader perspective, not just the angst of Wave's own slow-to-materialize revenues.