Replies to post #91793 on Wave Systems Corp. (fka WAVXQ)

[Snackman]

Pickle Power, SKS confirmed we would have the same margins. We should be in the $36.00 to $37.00 range. You can forget the $20.00 margin, that's not going to happen in the short run.

And if we get to 3-10 million per month, who cares if the margins are reduced at that time? The volume will make up for any discounts.

[orda]

But



we've ALWAYS been wrong. :) Way wrong.

[dig space]

I made no effort to speak towards margin,

I was simply saying that volume princing and per item pricing are different beasts. This has nothing to do with margin.

Do you think the gov is going to pay the same amount for ETS that they pay for the ENTIRE UNDERLYING OS?

Simple question. Is that what you think?

What is the list price for XP Pro? What do you think the gov pays? Do you think those value are the same?

[dig space]

here's Dell's listed price for XP pro:

http://accessories.us.dell.com/sna/productdetail.aspx?sku=A0388605&cs=04&c=us&l=en

is that what you think the gov is paying ... or any enterprise customer?

$310 per seat for the OS? Certainly not my gov, but maybe yours.

The POINT IS these price points are more valuable COMPARATIVELY than they are for making the revs projections you put forward.

Don't think for a second DELL or MSFT or anybody is pulling the 310 per unit listed on the DELL site for the MSFT XP Pro OS.

It is simply not what is going on.

Snackman's "we're at 36-37" comments have nothing to do with the underlying reality, this software is going to be bundled, packaged, combined, recombined, etc for any variety of price points which may well vary in the range of 5-10 fold. You grabbed the $60 high number and ran with it. Not a good path to a p/e IMO.

That is the point of my content. I'm going to asume that neither you nor Snackman buy or sell much software.