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

To: Larry Brubaker who wrote (16094)	11/14/1999 11:22:00 PM
From: Eli74	Read Replies (1) \| Respond to of 27311

Larry, I fail to see the point you're trying to make. Is it that you're trying to proove Rich wrong in some of his assumptions and assertions? I fail to see how that is particularly relevant. Would you enlighten me please?

To: Larry Brubaker who wrote (16094)	11/15/1999 3:17:00 AM
From: Rich Wolf	Respond to of 27311

Larry, there is no argument that the delays in production to the current quarter have held back on both cash flow and the ability to raise capital at better prices. Another consequence is that the company has had to reevaluate their schedule for putting equipment in place according to the most likely initial product launches. Further, the third line was cannibalized to make the Klockner line operational, so at this time there are only two lines in NI. The next line on order is a higher-speed German-made line that allows for variable-sizing without retooling, and I believe it is to be delivered after the middle of next year. It is also possible that this newer line, being effectively capable of putting out six times the number of cells of the older Klockner line, could actually result in retiring the Klockner line. Related to the juggling of priorities vis-a-vis ordering of equipment, I would note that the from what was said on the last two calls that the company has clearly delayed acquiring the automated packaging equipment for the large cells until roughly the time frame in which this next assembly line will be in place. As a result, in the interim any large-cell orders would still require the hand-packaging step (which is doable if not wholly desirable)... and I would speculate that the reason for pulling back the quote of capacity run-rates has less to do with having a lot of equipment still needed as it does with a shift in emphasis during the next few quarters to a focus on cellphone cells.... and since the high capacity quoted before was at least 2/3 accounted for by the large cells, then if they are not expecting to be producing those in quantity until perhaps next summer, they will delay the automated packaging equipment until then for that reason... and similarly would low-ball the revenue number. That doesn't meant that it can't jump right up with the addition of a modest amount of equipment...