Tickertype,
Thanks for the news release. It is not totally a surprise because the VLNC chart has been showing signs of some positive development. It was a matter of time to see the proof in the form of a news release. (The news provides an excuse for the expected uptrend to 10-12.5.)
Secondly, the Samsung license is not a surprise either, since Lev had already mentioned during a conf call from Korea about positive meetings with Samsung. The surprise factor for me was how fast VLNC and Samsung came to an agreement. Lawyers could have taken much more time.
4 to 6% of net revenues in the amount of ca. $500K per quarter as royalty is being indicated by Lev. $2 Million per year. It would be nice to check if the projected income would include raw material sales. My understanding was that raw materials sales were to be handled by VLNC suppliers and that VLNC would get a percentage of sales to VLNC licensees as royalty, besides VLNC laminate sales to OEM's.
Samsung has technology, manufacturing know-how, lots of capital, and a big share of the electronics market (cell phone, PDA's, whatever). They can use most of the batteries in their own electronics products.
It is interesting to see the news release as Dell is recalling laptop PC's due to battery failure. (Dell is laying off 4000 more people.) Looking forward to the conf call and a good earnings report from VLNC. VLNC has got Taiwan, India, China, Malaysia, and Korea. Who is next? Ram |
