VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Zeev Hed who wrote (20750)	8/1/2000 8:05:51 PM
From: kolo55	Read Replies (1) of 27311

Q Loss of $9.25M includes $2.5M Depreciation... ... and this is a noncash expense. You need to add it back to get the cashflow. So the actual negative cashflow impact from the income statement is about $6.75M per quarter. I believe the cash raised from the sale of stock in June is included in the balance sheet, and clearly some cash was used to pay down Accounts Payable and improve the Quick Ratio of Current Assets to Current Liabilities. If the company maintains a similar ratio and similar cashflow in the next two Qs, they will go through $13.5M of their $21.3M in cash. This of course, isn't going to happen, because they are investing significant additional monies in long delivery equipment scheduled to arrive this fall, they will be increasing revenues and working capital requirements as they ramp some of the other announced POs, and they will qualify and begin receiving some IDB monies in this timeframe. Their need for raising new monies really depends primarily on how much they expand revenues (faster means need for more working capital), and how much they are spending on the new equipment which will substantially raise their production capability. Paul

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