Well, Larry, you're not going to like my answer, but here it is: the $25 million is to pay for all aspects related to the FOURTH line (you forget there IS a THIRD line already there, reported on at the shareholders meeting, but not in the SEC documents). They anticipate taking delivery of this fourth line at the end of summer, and need to pay on delivery.
I concur that it would have been nice to have someone ask more specific questions about these items during the conference call, but that didn't happen.
If you work the numbers, the 30 million cells/year capacity that Lev was quoted on, in the London Financial Times article, comes from assuming the maximum production rates of the first three lines they currently have in place, as: line 1, 10 cells/min (large format laptop cells, 4x4 now, maybe 4x5 later); line 2, 25 cells/min (startac cellphone cells currently); line 3, 25 cells/min (other cellphone sizes, at shareholders meeting was proposed as the model 43D cells we saw there, designed for GSM phone makers, as in the 1/99 spec sheets).
Max output of 60 cells/min (10+25+25) * 504,000 minutes (in 350 days) = 30 million cells per year (350 days leaves 15 'down days' per year).
Yes, something doesn't match. Are they misleading, in not updating the SEC documents fully? Or being overly conservative? You can keep claiming there are only two lines there, and you will continue to be wrong.
BTW, the 4th line is for laptop cells, with max output rate of 40 cells/min. |
