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

To: add who wrote (16759)	12/7/1999 6:35:00 PM
From: Rich Wolf	Respond to of 27311

Actually, since the second PO was for standard-sized StarTac cells that Valence was already able to produce, I would remind folks that during the Nov. 11 conf call, Lev said they were 'stockpiling' product at that time. I would conjecture that those were for the second PO, and those cells would possibly even be able to be shipped by end of 1999. The PO statement that the initial shipment 'would be completed by the end of January 2000' gives Valence a fair amount of wiggle room. I expect that in January, they will be installing the jigs/dies for the satellite phone cells (Qualcomm, we think), and will be busy doing their initial production runs... and shipping out the first good cells by the end of CY 1Q00, as the first PO indicated. This also provides some reasonable wiggle room for that PO. They might also be producing and stockpiling cells for other POs in the interim, and working on how to dovetail production schedules for the first half of 2000. Now, about those POs for cells coming off the ol' Klockner line (ie, for laptop applications).... esp considering they should receive a pricing premium for those cells, beyond what they received for this second cell order...