Wave Systems Corp (WAVXQ) SEC Filing 10-Q Quarterly report for the period ending Tuesday, September 30, 2014

Exhibit 99.1

Wave Reports Q3 Net Revenues of $4.3M

Lee, MA—November 6, 2014—Wave Systems Corp. (NASDAQ: WAVX), an enterprise security software provider, today reported third quarter (Q3 ’14) results for the period ended September 30, 2014. Wave will host a live webcast http://www.wave.com/resource-center/webcasts and conference call (212-231-2902) today at 4:30 p.m. ET to review its Q3 results and progress to date in 2014.

Q3 Financial Highlights

·                  Wave’s total net revenues for Q3 ’14 declined to $4.3 million versus $6.3 million in Q3 ’13 and $4.4 million in Q2 ’14.  The decline in total net revenues from Q3’13 included a decrease in licensing and maintenance net revenues of $1.8 million — consisting of:

·                  a $1.4 million decrease in OEM software bundling revenue, resulting primarily from a decline in shipments of Wave’s solutions under its OEM bundling relationship with Dell and

·                  a $0.4 million decline in consulting revenue from one of the world’s leading international oil and gas companies.

·                  The decline in total net revenues from Q2’14 consisted of:

·                  a decrease in licensing and maintenance net revenues of $0.4 million, consisting primarily of a quarter-over-quarter decrease in OEM software bundling revenue as described above and

·                  an increase of $0.3 million in revenue earned during Q3 ’14 from a service contract with an OEM partner.

·                  Q3 ‘14 total operating expenses declined to $6.4 million versus $9.1 million in Q3 ’13.  Q2 ’14 total operating expenses were $8.2 million.

·                  Wave’s Q3 ‘14 net loss narrowed to $2.1 million, or ($0.05) per basic share, compared to a net loss of $2.9 million, or ($0.09) per basic share in Q3 ’13, and a net loss of $3.8 million, or ($0.09) per basic share, in Q2 ‘14.

·                  Q3 ‘14 total billings declined to $3.4 million versus Q3 ‘13 total billings of $7.1 million. Q2 ’14 total billings were $3.6 million. The year-over-year decline was due to a $2.2 million decrease in licensing and maintenance billings, the absence of current services billings versus $0.4 million in Q3 ’13, and a $1.1 million decrease in OEM billings, principally due to a decrease in Dell-related OEM bundling activity.

Working Capital

·                  Cash and cash equivalents were $4.3 million at September 30, 2014 compared to $2.1 million at December 31, 2013 and $1.8 million at September 30, 2013. Wave’s total current assets were $6.7 million at September 30, 2014 and total current liabilities were $8.6 million, including $5.0 million in deferred revenue.