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

To: Larry Brubaker who wrote (13626)	8/12/1999 12:45:00 PM
From: add	Respond to of 27311

Larry, I think we are in agreement about the $2.5M in deferred revenue. They received the cash long-ago for materials. My point was that if the 233K of revenue was sent to Hanil, it would have been subtracted from the deferred revenue liability. Since it was not, we can only assume it was revenue from Alliant. As such, it was a cash payment.The cash flow statement bears this out. When the first $2.5M of materials is sent to Hanil, VLNC will recognize the revenues on the income statement and then remove the liability. It will not have any impact on the cash position in the quarter that the revenue is recognized since VLNC already got the cash long ago. As a caveat,I don't know what exactly the deferred revenue is for. It could be that Hanil paid cash this quarter for materials other than what was specified in the agreement that first generated the $2.5M in deferred revenue. So the 233K could have some from Hanil, or Alliant or both, but it was a cash payment. At some point, VLNC will ship $2.5M worth of stuff to Hanil and remove the liability. I hope that's more clear.