Conference call synopsis: Okay folks, it started with the FRB announcing L.D. as the spokesperson. He was speaking from N.I., although it was unclear whether he was speaking from the facility itself. He started with the usual forward looking statements disclaimer, touched VERY briefly on the earnings statements. He stated the batteries are going down the large line. Those batteries are under test and have been for some time. The small battery line was delayed, and is currently under acceptance testing. If all goes well acceptance should occur by next week. The small line should be producing by the 1st of December, barring any difficulties of course. He then launched into questions, which follow:
1. Could he share his thoughts about Bert Roberts joining the board? L.D. - His experience in bringing a small company up to a large scale should be invaluable for VLNC. B.R.'s advice is clearly welcomed and they anticipate he'll be "very active" on the board.
2. Are analysts visits scheduled to tour N.I.? L.D. - Yes, the date is 12/03/98.
3. How does the battery quarantine period work? L.D. - Batteries are taken from the production line, conditioned, degassed and then quarantined for 30 days to check for potential problems. After this OEM's get to test them. OEM testing procedures, timeframes etc., are an individual case basis which varies greatly from OEM to OEM, so it's hard to say how long they take to determine product efficacy(my words).
4. A question about industrial product safety standardsand how this might impact VLNC's product rollout. L.D. - Depends on the OEM's who usually do this in parallel with VLNC's process.
5. A question regarding the next CFO. L.D. - That's a "digital" sort of thing(meaning yes/no of candidate & company?). They expect to have one soon.
6. A question about if VLNC is still targeting notebooks first, followed by cellphones? L.D. - Yes, they're still sending to notebook manufacturers and expect them first but the small line(s) will be sending samples to cellphone providers too.
7. Are manufacturers varying the recharge cycle rate to determine the negative/positive impact to VLNC's product? L.D. They have varied the recharge rate by ~2x the normal rate and the cycle life is "as good if not better."
8. What will be the pricing of the cells? L.D. - the 4x4 will be priced approx. the same as prismatic cells currently provided by Asian manufacturers. To give an idea, however, VLNC's cost to produce this 4x4 is LOWER than prismatic costs..
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