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

To: John Curtis who wrote (2104)	2/11/1998 9:56:00 AM
From: John Curtis	Respond to of 27311

Current bid/ask = $5 1/8 x $5 3/16. Me thinks the financial info. is being well received, at least initially. When you stack it up against the ULBI number(which is just about the same), VLNC looks to be in not bad shape. I also noticed that as of the end of Dec. they had cash, or cash equivalents, equal to $17.3 million and the value of plant, property and equipment is ~$28.7 million. Now although these numbers would make me a tad uneasy, given their burn rate(they ran thru ~$10 million between March 30, 97 and Dec. 97), if things are on the up and up for 1st qrtr, then they appear to be crossing the finish line at just the right time.... John~

To: John Curtis who wrote (2104)	2/11/1998 10:16:00 AM
From: Jeff S.	Read Replies (1) \| Respond to of 27311

Hi Guys: What I find very interesting and even...bullish are two items on the balance sheet. The first one, A/R is at $1.8 million, up from $431k as of March 1997. The second one, and even more important is deferred revenue in the amount of $2.5 million, up from zero as of March 1997. The receivable means that Valence is owed money for something, in the past it could have been shared research expenses with Delco. But what about that deferred revenue? This means that they have received cash, or are owed funds, A/R, for products, (or services). If the products have not been delivered to the customers then there is no reason to book the receivable. Therefore products have been produced and maybe even delivered and accepted by the customer(s). Probably no contract has been signed and Vlnc management will not recognize revenue until a contract is signed. This is all speculation on my part, but still there are two line items on the balance sheet that need explaining. Jeff