mjan112

Interview: Steven Sprague, CEO of Wave Systems Corp. (Nasdaq: WAVX)

Steven,

The potential scale of products and services that can be derived from Trusted Computing seems large. I have two questions regarding Wave System's current ability to derive revenue from Trusted Computing.

First, it appears you have had good success getting OEMs to provide Wave a small amount of revenue by bundling software with the Trusted Platform Modules in PCs and laptops. It seems you have had limited success convincing the purchasers of those PCs and laptops to purchase additional, higher revenue generating, software from Wave. My question is - is this a case of Wave selling software that no one wants to buy? If not, when do you expect revenues to be generated from selling non-bundled software.

Second, as I mentioned above, I see great long term potential in the ability of Trusted Computing to fundamentally change the way digital devices enable both BtoB and BtoC business to be conducted. What is the focus of Wavexpress to that end, and what do you see in the short term from this service? I actually use it today and I like my user experience, but I don't see how it is currently adding such value to the company as to offset the resource drain it must be.

Cheers