VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Zeev Hed who wrote (5027)	11/14/1998 3:15:00 PM
From: FMK	of 27311

Zeev, I just studied your post further. I believe line 1 alone should be capable of turning out 2500 good batteries per 8-hr shift. I also believe it will be a 7 day per week operation so I would then count 2500/day x $75 x 350 days/yr resulting in about $65.5 million revenue per year for just that one shift. I understand one of the challenges is to get the production numbers up. What would be easier than to go to 2 shifts and then to 3 shifts once enough personnel are hired and trained? It would also make sense to direct some attention to the high speed lines and eventually to the total of 10 production lines the factory presently has room for. I believe their present coater/laminating capacity might be limited to about 80 million cells per year. At least, its reassuring that just the first line should be able to exceed the breakeven point by (7500 - 1800) or 5700 batteries per day. How would you then estimate the profit contribution from 5700 batteries per day at $75 each? Remember that the first 1800 per day already paid all the bills and there are about 27 million shares outstanding.

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