Ram, as for "He also set a production target of 5Million wh/month for the NI plant. Currently they will ramp up production to
1 Million wh/month. At 5 Million wh/month, I estimate roughly a modest revenue: 5 MM wh x $2/wh = #10
MM/month or $120 MM/year. At a gross margin of 30%, VLNC could earn $36MM/year or approximately 80-85
cents/share. Even if they show earnings of 40 cents/share in 2003, that will be good. The 5 MMwh/month is the final
target capacity for the NI plant. Stephan feels that the 5 MM wh/month is sufficient for all the markets he plans to
compete for now. (Comments: After meeting the current production target of 5MM wh/month, Stephan has to come
with a plan for ramping up revenues in the future, beyond 2003.) ", how many times are they going to resell those figures to the public (even though they are downsized from the last time)? As for the write off, the only people being "ripped off" are the tax payers, after all, VLNC paid some 45 MM for telecordia's technology and now wrote off some $30 Mm plus of that payment, but they never really "paid" for that, they gave them 3 MM shares at 15/shares, now they are writing it down, increasing their "carry forward losses by some $30 MM which under normal circumstances, shifts the tax burden to others. In this case, since there are still grave doubts that they will ever pay taxes, maybe the affront is not too big (g).
Zeev |
