Replies to post #226833 on Wave Systems Corp. (fka WAVXQ)

[player1234]

I don't know the exact account, but I do know the company has a bad habit of doing pilots without first qualifying the real opportunity. They burn lots of resources and spend lots of money without knowing much about the purchasing process, the compelling event, who makes the decision and the reality of the budget. They did not put success criteria in place and consequently, didn't get deals because there never was one to be had. No one in the USA has had the guts to tell senior management to walk away from a pilot because it wasn't qualified.

So, the $5 or $6 million dollar deal, never really existed. It was a case of throw things up against the wall and see what sticks.

[dig space]

This may be two different points being covered in that bit. SKS does a poor job of maintaining compartments when he speaks (and perhaps when he thinks).

Wave e.g. has been working on a DoD pilot to conclude in August (timeline, total amount, amount so far earned and so on in each of the last few Q reports). Basically the amount was some 1.5m (1.3?, 1.7?, I cant' remember) and Wave is to get paid for each platform certified through the process. I understand this to be BIOS work, each platform being a particular set of machines with particular BIOS. While Wave gets paid to do this work, all they are doing is certifying platforms for a potential future sales of presumably WEM. Platforms have been certified, WEM has not been purchased at scale, I believe this is the 'check' SKS speaks towards. Wave isn't in the business of slaving over a trial for a year to pull in 1.5m, they are in the business of selling WEM to those platforms for $30+m. SKS is referring to a WEM p.o. as a check, not the platform certification work (which they do get paid for, but not a whole bunch).

On the $5-6m account. It has been variably mentioned in the last couple calls that a deal(s) for $5-6m or $8-10m crashed out 'cause of floods or slow decision making. In the Q2 call it was stated that a Q1 expected thingy is disappointed and is "closing now" ... whatever that means.

I expect this deal to surface this year, and as with BP,once its out there from a CC the chatter from the following is "where'd it go?!?!"

Player says it was a sticky mud play, I'm thinking it is a deal exiting the pipeline in a sticky way.

It does seem that 2 deals for $8-10m has migrated to one deal for $5-6m but these are not the type of things Wave has ever demonstrated anything resembling arithmetic cohesion or competence on.

I think it was that pending deal that made them go the ATM route, they probable thought the deal would close Q1, they'd get a SP bump, they would sell ATM into it, plus the cash from the deal itself, and have all appearances of momentum having come off BP the Q before that and BASF a Q or 2 before that and have a tidy sum in the treasury.

When they filed the ATM I recall saying something to the effect of "they are going all in" as it necessarily from my estimation of their treasury required a deal in the short term less it turn into a bleeder.

Wave's forecasting was true to form, and there be blood.