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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: mooter775 who wrote (16053)11/13/1999 1:08:00 AM
From: Larry Brubaker  Read Replies (1) of 27311
 
<<My understanding is that the company can today produce at a $ 40 mm or so run rate, expects to increase that to the $ 80 mm or so run rate by calendar Q4 2000 with the addition of several millions in capital, but also have in place at the end of 2000 time sufficient capacity to produce in 2001 at a run rate of $ 200 - $ 250 mm. Is that not your understanding as well?>>

This statement is much closer to what Lev said (although he did not say they can currently produce at a $40 million run rate, he said they can get to that rate quickly with some more equipment). Your previous post stated that they would have the capacity for a $250 million run rate in 2000, not 2001.

Of course Lev's conference call statement regarding current capacity may only relate to the theoretical capacity of the currently installed equipment. But again there are those caveats in the SEC filings about further development required before the technology is ready for commercial production. So the capacity of the installed equipment may not be one and the same as being able to produce acceptable product at that rate.

As far as ramp-up to additional capacity in the future, of course this is just a plan on paper at this time. If they are still peeling the onion, as is implied by the SEC filings, this plan means little because they do not have the financing to carry it out.

On the other hand, if this is just the first of many purchase orders to come soon, as the conference call implied, then financing should become less of an issue and the money to increase capacity should be readily available.

Which to believe? The filings or the conference call? For me, I guess I'll just wait and see what happens next.
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