Jacques,
"...new EVI order for K-Charge batteries naturally did not include a dollar amount..."
Even if they gave the dollar amount, as a retail investor I can not figure out how many cents it will boost to their earnings for the next quarter. What is more important to me was the implication in the announcement that EVI has been satisfied with VLNC product and has come back for more. A long history of excellent performance and customer satisfaction is important to the long term growth of VLNC.
This company is still in an evolving stage: developing new products, finding new markets and partners to produce, developing sales channels, managing the "highly-leveraged" commercial production in China (ATL, Sinbon, FengFan, PETC) etc. Their balance sheet is also evolving. I would wait until they achieve the cash flow breakeven by the year end (2004) as promised, to figure out earnings, etc.
The following news release right after 2-3 days of incredible volume (1-2Million shares) was more encouraging because the Gen II products were already in customer's hands for testing, which is consistent with the timeline given in earlier conference calls.
Both Gen I and Gen II will go to different markets requiring different performance characteristics.
We know so far:
N Charge for external battery for PC (qualified by HP and Dell) and cell phone,
Tablet PC (NEC),
Telecom power systems (Tyco),
Power backup systems for utilities (AEP),
automobiles (USABC),
EVI's trucks,
unknown Japanese/European auto manufacturers, etc.
Expect product releases at Demo 2004 or in this quarter: cylindrical cell, consistent with their statements in earlier calls (including a statement like "a power tool manufacturer is extremely in the cylindrical cells"). We'll hear more tomorrow.
Good news should move the stock higher. In the 6-7 price the Riverview pfd shares have to be converted when the moving average price hits 6.38. Berg's last installment of $5Million was good for this quarter. Berg's $14Million offer (terms not defined yet) can last them two more quarters (April through September, 2004). I expect the October-December 2004 quarter should be cashflow breakeven.
jmo. Ram
Valence Delivers Samples of Second Generation Saphion Technology for Customer Evaluation
AUSTIN, Texas--(BUSINESS WIRE)--Jan. 20, 2004--Valence Technology Inc. (Nasdaq:VLNC), a leader in the development and commercialization of Saphion(R) technology, the only safe large format Lithium-ion rechargeable battery technology, today announced that it has delivered samples of its second generation cylindrical Saphion Lithium-ion technology for customer evaluation.
A primary feature of second generation Saphion Lithium-ion technology is its high rate capability, required for power applications in the consumer and vehicular markets. The superior cycle and service life characteristics of Valence's first generation Saphion technology are needed for large format energy applications such as utility and telecom back-up power systems. The performance features specific to each generation of Valence's Saphion technology, combined with the safety characteristics offered by both, significantly expand the market opportunity for Lithium-ion technology.
"The recent publicity on safety issues related to traditional metal-oxide Lithium-ion technology has strengthened the position of our Saphion technology as the only safe large format Lithium-ion technology available today. As a result, the requests to evaluate it have increased over the past several months," stated Stephan Godevais, chairman and CEO of Valence Technology Inc. "Today's announcement is a significant step forward in the commercialization of our second generation Saphion technology, and we are very pleased with the progress we have made to date."
Valence launched its Saphion Lithium-ion technology in the spring of 2002 and has since commercialized it in applications such as the N-Charge(tm) and K-Charge(tm) Power Systems. Research and development of company products continues with great success, marked by this latest advancement and the manufacturing of cylindrical cells, which began in December 2003. |
