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Technology Stocks : VALENCE TECHNOLOGY (VLNC)
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To: Emmo who wrote (2126)2/12/1998 9:25:00 PM
From: FMK  Read Replies (1) of 27311
 
Emmo, I believe OEM's have had production samples for some time. The company needs to be careful with this information because of the competitive market and OEM's non-disclosure requirements.

I recall that line 1 cellphone cells were being inventoried for testing in July. At the time, it made sense that VLNC would test some of this inventory and later submit it to potential customers.

It also made sense that at least one of the OEM's spent a substantial sum for automated testing equipment, and if two companies are working together, that substantial time could be saved if both the OEM(s) and Valence tested simultaneously.

I have understood for some time that OEM's have been ready and don't believe testing programs should now significantly delay a contract.

On the subject of production line readiness vs contract timing, Valence's policies differ from those at Ultralife who announced contracts with Toshiba over six months ago.

I recently spoke with an engineer after he toured their Newark, NY plant. He reported that they have yet to debug their production line to share the workloads of hundreds now assembling their batteries by hand on a 3-shift/day basis.

So, what should we expect when Valence contracts are announced?

Please refer to the following posts for some relevant thoughts.

Message 3050555
Message 3051674
Message 3104769

Regards, FMK
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