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

To: Peter Groninger who wrote (26259)	2/14/2004 10:23:37 AM
From: P. Ramamoorthy	Respond to of 27311

"...breakeven revenue of $10MM/quarter..."?? Is this your prediction of company's future cashburn rate? Breakeven is when expenditures = revenue. If the expenditures are going down after the sale of NI plant and Henderson plant, if the employees are cut to about 100 people, if the R&D and G&A expenditures stabilize, and if their product margins are to improve significantly, (as per CC), then expenditures can not be greater than FY2004 3Q which included one-time expenses of closing down the NI plant and depreciation. Considering that they will net about $5-6Million for the sale of the NI plant, it would take far less revenue to breakeven, say $5MM, not $10MM. We'll find out before the end of June, 2004. jmo. Ram