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Technology Stocks : ULBI..Ultralife Batteries -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (476)	8/10/2000 10:41:05 PM
From: Dennis Roth	Read Replies (1) \| Respond to of 522

There were two CC's. The first CC at 10 am was mostly negative as they read off prepared statements about poor 9 volt battery sales etc. and then when they asked for questions there were none. It seems all the analysts had been cut off. They held a second CC at 4:15 pm after the market closed and it was more upbeat but I fear the damage has already been done. The second CC had a good number of analysts asking questions mostly about the rechargeable cells. They are shipping to distributers and are recognizing revenue from them now. It doesn't sounnd like the orders are very big yet. The distributers are supplying small stores, no big retail chains yet. The Taiwan venture is installing equipment right now and will be in pilot production in the fourth calendar quarter and in commercial production early in 2001. Taiwan will initially make a cell that is a different size than the ones make in Newark but they didn't specify what device it was for. They described the pouch cell production. Currently it is hand made for the small land warrier program and they have automation engineers in designing equipment under the recent $3.1 million program with the U.S. Army to automate important parts of the production process. Equipment for partial automation should be coming in around December - January. they hope to be partialy automated by the end of the fiscal year. If market conditions justify it, they will fully automate the production. They see potential market for it in automotive and medical. They blaimed the poor 9 volt sales on their largest customer still working down inventory until very recently. They claim that there has been a lot of interest from OEMS since their press release about their current LP cells. One of their goals this year is to expand the offerings both in capacity and foot print. Eric Dix said they were on track to reach their goal of a run rate of 200,000 cells a month ( yeild not gross )this year ( fiscal year, I assume.) John K. said they could produce 2 to 4 times that number with modest capital investment if needed. >> The recent nice advance has been completely eliminated by today's action, is the CC involved? << I think it was the unexpectedly weak primary battery sales and lack of positive information about the rechargeable product until the conference after the market closed.