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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Doug McKenzie-Mohr who wrote (15280)10/17/1999 1:26:00 AM
From: Rich Wolf  Read Replies (2) of 27311
 
Doug, do you have the specification for the watt-hour capacity of the cell that delivered that runtime? Was it with or without use of an auxiliary battery? Was that reported runtime for heavy graphics usage and disk access? Can you tell us whether the device has a 14" TFT screen, or a dual-scan? These factors would greatly affect the reported runtime of the product. Tricks to reduce power consumption such as dimming the displays are just temporary fixes, people would rather have the crispest, brightest screen possible. The display will likely remain the greatest power consumer of the device, except in cases of heavy disk access. Additionally, I would note that with the onset of wireless LAN and internet access, laptop power profiles (power demand versus time) will be merging with that of cellphones. Additional power drains will be the use of DVD devices in laptops.

Overall, it is likely that power requirements will continue to increase. This is the same paradigm as increased memory and processor speed always being gobbled up by the evolution of applications. Hence the need for cells having higher energy density, as well as the evolution towards thinner form-factors for devices. Both of these trends point towards lithium-polymer cells, with thin li-ion and 'film' li-ion being stopgap measures only.

We keep watching, but we haven't yet seen li-ion cell specs that match Valence's, in regards to energy density. This is especially true in regards to the 4mm-thick 'prismatic' form factor. By this measure, whatever performance Apple is now reporting would be greatly enhanced by using our cells.

Sidebar: The new so-called 'film li-ion' cells (3-4mm) that various manufacturers are attempting to manufacture, to match the thin form factor of li-poly cells, reportedly have poor performance characteristics: shorting under high pressure/temperature conditions; completely losing capacity even at 32 degrees F; not having good cycling characteristics (even li-ion cells only get 500 cycles vs 800 for NiMH for GSM applications; Valence cells have been tested to over 1000 cycles, as reported to us back in February); etc.

Not surprisingly, then, all is not as it may appear at first glance.

Reports are that the currently distributed Valence cells exceed the specs provided us back in January. This is not surprising, as modifications to the additives, electrolyte, formation charge, and other subtle technological changes could have provided the same improvement for our cells that the li-ion cell makers have obtained over the same time frame.

Looking forward to seeing the 'official' specs from the company or the OEM who uses our cells, to confirm this.

Now about some of those POs ...
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