VALENCE TECHNOLOGY (VLNC) Message Board

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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: P. Ramamoorthy who wrote (25651)	11/6/2002 4:31:33 PM
From: Tickertype	Read Replies (4) of 27311

Ram, I'm sure this was a move to cut operating costs, plain and simple. Payroll is by far the greatest cost for most companies, so if you want to save money that's where you do it. The advantages of outsourcing are not new to me, having gone that route many times over the past several decades (in various areas of the tech sector). However, it is one thing to farm out the production of non-unique technology (ex: N-Charge assembly) and highly specialized items like the phosphate batteries. The contract manufacturer must be in posession of specialized equipment and process capabilities, which limits the availability of suitable sources. I'm curious to find out if they will included non-VLNC licensees. I would assume the first thing we'll see in terms of getting off square one will be an agreement with a tier 1 OEM. SG still expects it to happen this year. In addition, if progress with the cylindrical units is on schedule, I think we could see some sales related news coming up on that front also before too long. JMO. - T -

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