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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (12853)	7/6/1999 6:28:00 PM
From: Rich Wolf	Read Replies (2) \| Respond to of 27311

Excerpt of relevant section of conference call: When Hugh Covington asked about whether R+D stilled covered capital equipment expenditures, the COO Roy Wright answered that their equipment was 80% paid for, 'since we've been paying as we go,' that this coming quarter would be the last one for big capital expenditures, and that the quarters following would see a drop. Hugh Covington then followed up by asking when they would get 'in the black,' and again it was Wright who answered, and he said that in the quarter following (3Q00, Oct-Dec), because the capital expenditures would drop, they would be 'in the black' as regards cash flow, just based on their expected Hanil and Alliant orders. He then added that of course, the revenue coming in from other orders would therefore add more directly to the bottom line. This statement from Wright should not be surprising, since they anticipate Hanil running their cellphone assembly line 3 shifts/day, and sharing the profits with Valence 50-50 (as well as covering the cost of the laminates from Valence). Interestingly, in another part of the call the CEO Lev Dawson said that while initially the Hanil orders would be larger than Alliant, he now expects that in the end the Alliant orders would far exceed the Hanil orders. He also said that with regards to the timing of the current orders, Hanil has been progressing faster than he expected, and would also be moving quickly into producing in response to POs since they had close relationships with their customers due to the chaebol structure in Korea. He then added that the Alliant order's size caught him off-guard, and he was needing to move quickly to respond to it. BTW, the only 'chuckling' I heard during the ENTIRE call was when someone asked later when we'd hear more about FINANCING, and Lev responded 'soon,' then added 'within the month,' and THEN even said 'maybe lots sooner than that.' Then there was general laughter around the table ... and after the call we all saw the SEC filing for the 424B2, the $3M private financing arrangement. I would've laughed, too, if I knew what they knew. There was no 'chuckling' AT ALL at the point in the call where quarterly revenues were being discussed. This has since been verified by a half-dozen other listeners. On the whole the call was positive, and there was no discussion of the ongoing problems, as we'd heard in the calls last year.