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

To: John Curtis who wrote (26263)	2/16/2004 4:14:50 PM
From: P. Ramamoorthy	Respond to of 27311

John, "...has anyone tried to bound the actual number if "widgets" that 90% of $2.7M ..." I would have attempted an estimate. But I did not bother to estimate because the current version of N-Charge will be replaced from retailers by the second generation N-Charge to be rolled out in quantities as the "universal" battery in April 2004 out of ATL, China. Meaningful sales estimates may be possible for the Jul-Sep, 2004 quarter, after a ramp up in the Apr-Jun, 2004. Regardless, I look for a revenue target of $5-6MM this Fall (NCharge, UCharge and KCharge sales with a positive margin), if they hope to cash-flow breakeven in FY2005. Until then, watch the balance sheet data to see how fast their expenditures are going down starting this current quarter, after the NI facility is closed down, employee number reduced and sales of NI facility completed, the final bit of inventory at NI cleared, etc. NI plant sale would net them $5-6MM. Their cash position should improve as a result. In addition, when the stock moves up in the $6-7 range (average trading price of $6.38), the Riverview pfd will be converted. VLNC is not giving Berg any discount for his $14MM equity funding until cash-flow breaeven. They will issue equity to pay back the grant to IDB. Ram