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

To: P. Ramamoorthy who wrote (25647)	11/4/2002 8:34:09 PM
From: Tickertype	Read Replies (1) \| Respond to of 27311

Sounds like something that needed to be done. Considering their cash position (non-existent) I've been wondering why they keep 3 different facilities going. My guss is this outsourcing is connected to their efforts in the cylindrical design area. Stephan was supposed to have some news on that a month ago, so I expect we'll hear about it on the cc. If the new test samples were up to their expectations maybe they're getting ready to start cranking them out in Asia soon. - T -

To: P. Ramamoorthy who wrote (25647)	11/5/2002 10:16:52 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

<<Lower capital needs can help slow down the share dilution until they get PO's and generate earnings.>> Not unless they can reduce their burn rate from the current $9 million per quarter down to less than $5 million per quarter, because Berg's financing is limited to $5 million per quarter. So, they are reducing spending because they don't have the money to continue to burn $9 million per quarter. But in all likelihood, they will continue to need the maximum of $5 million per quarter allowed under the agreement with Berg. Particularly when you consider they need $1.1 million per quarter just to pay interest on the loans they aleady owe to Berg.