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Wave Systems Reports Q2 Results and Reviews Growing Momentum of the Trusted Computing Marketplace
Lee, MA -- August 9, 2005 -- Wave Systems Corp. (NASDAQ: WAVX -- www.wave.com) today reviewed recent corporate progress and reported results for its second quarter (Q2) ended June 30, 2005.
Wave's Q2 2005 net revenue rose to $258,000, compared to Q2 2004 net revenue of $6,000, principally due to an increase in software license revenue. Wave reported a net loss of $4.2 million, or $0.05 per basic share, for the second quarter of 2005, compared to a net loss to common stockholders of $4.3 million, or $0.06 per basic share, in Q2 2004. The year-ago second quarter included the benefit of a gain on the sale of marketable securities amounting to $1.2 million as well as a $300,000 charge relating to the write-off of impaired assets. The weighted average number of basic shares outstanding in the second quarters of 2005 and 2004 was 81,126,000 and 67,363,000, respectively.
For the six months ended June 30, 2005, Wave Systems reported net revenue of $335,000, versus revenue of $57,000 for the six month period ended June 30, 2004. Wave reported a net loss to common stockholders of $8.7 million, or $0.11 per basic share, for the first six months of 2005, compared to a net loss to common stockholders of $7.7 million, or $0.11 per basic share, in the first six months of 2004. The year-ago six month period included a $2.4 million gain on the sale of marketable securities. The weighted average number of basic shares outstanding in the first six months of 2005 and 2004 was 79,180,000 and 67,350,000, respectively.
As of June 30, 2005, Wave had total current assets of $1.9 million and no long-term debt. On August 1, 2005, Wave received proceeds of $2.3 million from the exercise of its Series A Common Stock Purchase Warrants, and on August 8, 2005 Wave completed a $3.6 million sale of common stock to investors under a Shelf Registration Statement.
Steven Sprague, Wave's president and CEO, said, "To-date in 2005 has been a period of important milestones for Wave as we have extended our market reach with some of the largest and most important companies in the industry. With the release of the new 1.2 Trusted Platform Module (TPM) specification and the commencement of initial shipments by some vendors, we believe the momentum for broad scale adoption of trusted computing solutions will now accelerate. Importantly, our partners' shipping volumes for trusted computing products incorporating Wave technology have increased in the second quarter, and we believe they will continue to increase in the third quarter." Summary of recent progress:
(for more details, please visit www.wave.com):
- Atmel Corporation : In July, Wave and Atmel entered a license agreement to provide Wave's secure software for the Atmel AT97SC32xx family of Trusted Platform Module ICs. The software package includes Wave's EMBASSY® Security Center (ESC) and Trusted Computing Group (TCG)-enabled Cryptographic Services Provider (CSP), as well as all necessary BIOS and Windows® drivers.
- STMicroelectronics: In July, STMicro announced that it has shipped more than one million units of its ST19WP18 Trusted Platform Module which, under a license agreement with Wave, includes Wave's EMBASSY Security Center and Cryptographic Services Provider trusted computing utilities.
- Efficient Forms: In June, Wave's wholly-owned eSign Systems group agreed to provide Efficient Forms, Inc. with electronic signature and document management solutions for its iForms Suite of products. The joint Wave-Efficient Forms solution will first be deployed at Fiserv Investment Support Services (Fiserv ISS), a business unit of Fiserve Inc. (NASDAQ:FISV).
- Seagate Encrypting Drives: In June, Wave announced it was extending its EMBASSY® Trust Suite (ETS) software products to support Seagate's new family of Momentus 5400 FDE hard drives. Wave is developing a new Trusted Drive Manager module and enhancing its Key Transfer Manager products to enable end users and enterprises to easily manage the life cycle of cryptographic keys including backup, recovery, migration and roaming for encrypted data.
- PC OEM Availability: Also in June, Wave's EMBASSY Security Center and Cryptographic Service Provider software applications were included with the new Dell Precision™ 380 workstation and OptiPlex™ GX620 corporate desktop. Wave's software ships in these models as a result of Dell's inclusion of STMicroelectronics Trusted Platform Module 1.2 security chip hardware in the PC design (see STMicro reference above).
- Intel: In May, Wave's EMBASSY Trust Suite 4.3 began shipping with the new Intel® 945 Express Chipset-based Intel Desktop Boards D945GNTLKR, D945GTPLKR and D945GCZLKR for trusted personal computers. Wave's ETS software is bundled with these Intel desktop board models.
- Giesecke & Devrient ("G&D"): In April 2005, Wave formed a strategic alliance with G&D to offer an enhanced security solution to address the trusted computing market. The collaboration will address G&D and Wave's respective joint development activities in the fields of smart card technology and trusted computing software.
About Wave Systems Corp.
Wave is a pioneer in hardware-based PC security that provides software to help solve critical enterprise PC security challenges such as data protection, strong authentication, network access control and the management of these enterprise functions. Wave is a founding member of the Trusted Computing Group (TCG), a consortium of more than 100 companies that forged open standards for hardware security. Wave’s EMBASSY® line of client- and server-side software leverages and manages the security functions of the TCG’s industry standard hardware security chip, the Trusted Platform Module (TPM) as well as hard drives that comply with TCG’s “Opal” self-encrypting drive (SED) standard. Self-encrypting drives are a growing segment of the data protection market, offering increased security and better performance than most existing software-based encryption solutions. TPMs are standard equipment on many enterprise-class PCs shipping today and have shipped on an estimated 300 million PCs worldwide. Using TPMs and/or SEDs and Wave software, enterprises can substantially and cost-effectively strengthen their current security solutions. Visit http://www.wave.com for more information.
Safe Harbor for Forward Looking Statements
Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
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For more information please contact:
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Wave Investor Relations Contact David Collins, Richard Land Jaffoni & Collins 212-835-8500 wavx@jcir.com |
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