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

To: Rich Wolf who wrote (13675)	8/12/1999 6:29:00 PM
From: Rich Wolf	Respond to of 27311

Comment about the shift in the completion date, from the end of 3Q00 (December) to 2Q00 (September): Two possibilities come to mind, both of which might have factored into modifying the language in the SEC filings. First, that they had previously included a wide margin for error, since the nature of the process of starting up a new manufacturing facility is that new problems are successively uncovered until you find no more. Since the completion of the process of 'balancing' the back-end processing, to allow for a uniform flow of product through the facility (with no 'bottlenecks') is all that remains, and is to be completed this quarter, then they now feel there are no more unexpected problems that will grind the whole process to a halt. Hence they can now tell us when they reasonably expect to have this completed. (i.e., they are just adding more back-end processing equipment, which is not as complicated in nature as the front-end film, lamination, and assembly equipment; and they already have much of it in place, so they are just adding more units of the same type.) Second, that they previously included the installation of the third line in their time estimates, and needed to allow for its completion to take place during the quoted time frame. Now they have clearly redefined the issue as not completely finalizing the entire factory , but that they can have lines 1+2 (and all related equipment) flowing smoothly by the end of September, and then they will be adding in all the components related to the third line over the next year.