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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Tickertype who wrote (22230)11/11/2000 3:38:14 AM
From: P. Ramamoorthy  Read Replies (1) of 27311
 
Ticker,
Lev, at one point, mentions 97% yield. You need to be specific about which part of the process the yield refers to. I had pointed out this last year. Rich added some explanation. For example, for the film production the yield can be 97% or higher. The back end processing is separate.

Just recently VLNC got a patent on extracting isopropanol and a patent on conditioning above certain temperature. It takes only 24 hours for conditioning VLNC batteries whereas other manufacturers of gel cans take 4 to 5 weeks for conditioning their batteries. That is, VLNC is still improving the process, still managing to get PO's and developing a nice marketing strategy via technology licensing.

The reason Lev threw away an entire batch of batteries was the quality and yield issue related to manual packaging of that specific batch of batteries - a single batch. He mentions on Nov 10 that he has automatic packaging on two lines. He expects to have automatic packaging in 2-3 months on all lines.

Also, note that Lev has been extremely cautious about credibility and reputation of VLNC batteries. He is careful. He said that he is sometimes too careful. All these remarks were in response to a question about lower gross margins last qtr. Ram
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