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

To: MGV who wrote (4138)	9/10/1998 1:34:00 AM
From: Larry Brubaker	Read Replies (1) \| Respond to of 27311

Actually, 100 production workers probably would cost a bit more than $2 million, that's only $20,000 per worker, salaries and benefits combined. I'm sure they come cheap in NI, but I doubt if they are that cheap. However, they already have over 100 workers in NI at their current burn rate of ~$5 million per quarter. I doubt they will need too many more than that until they've got more lines up and running. Raw material costs, packaging, shipping, sales commissions? Certainly will be costs here. But on the other hand, they supposedly have already paid for much of their capital equipment for 3 lines. Operating costs will go up with production, but capital expenditures should go down. Questionable accounts receiveable? Product returned? Defective product? I believe Lev said during the last CC they were assuming a 50% production yield as well as assuming they can break even with the first line. This assumption would seem to cover a lot of these items. Taxes, NI and US? They've got a hell of a lot of tax-loss carryforwards to spend before they have to worry about taxes. If this company ever has to worry about paying taxes, its shareholders will be considerably wealthier than they are now.