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

To: Tickertype who wrote (1348)	11/12/1997 12:21:00 PM
From: Paul Dubsky	Read Replies (1) \| Respond to of 27311

Thanks to all for the update. The trading volume certainly indicates that it was a snoozer. There are a couple points I'd like to make after looking over the 10Q: 1) They had unearned revenue of $2.5M. This is good. At least there starting to recognize (although it's on the Balance Sheet, not Income Statement) some revenue activity. 2) Investment in Joint Venture - New line item on the Balance Sheet. Things seem to be coming together on the JV front. 3) A $2.5 M royalty payment was made to Bellcore for their licensing of the technology. I am not aware of the specific contract between Bellcore and Valance, but I'd assume that VLNC would not have committed to pay royalties until they, themselves are realizing revenue activities as it relates to production. This is good. 4) P,P&E increased signicantly in the Qtr, refelcting increased production facitlites, no doubt. 5) R&D increased significantly, reflecting more R&D as it relates to commercialization. Everything on the 10Q looked pretty good to me. THe increase in cash, although it came at the expense of current share dilution, is good and should hold them over until 1998. The Line 1 re-do is a little disconcerting as I hadn't interpreted such significant re-design issues with it. Although it should be retrofited by the end of this month, they have to ramp up testing and go through this whole painstaking testing process, again. At least line 2 is looking good, as well as the new lines to be shipped soon. Regarding Qtr198 production estimates, I'm surprised they're sticking with that, even though that one of the recent press releases confirmed production during mid 1998. Oh well, what's another month or two. FMK, others, what's the story on the laminating facility? I don't recall this as being a seperate step at the NI facility. Still Holding...