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

To: FMK who wrote (5925)	12/12/1998 5:29:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 27311

FMK, I am still trying to understand the VLNC situation. On the patent front I could not find anything that should cause worry, unless you want to argue with management profligate expenditures on this activity. I am not going to argue with management on this point and assume that they select carefully what they seek patents on and what they do not). I was wondering where and how you derive profit margins on the two lines of batteries. I see you have $.4/battery profits for the cell phone batteries and you assume in general 33% profits margins. Are these percentages "pretax" post taxes? And, where do you get these?. When in production, what do you use as a "breakeven point"? I see from the thread that VLNC has now 270 employees, that would indicate to me that if their margin contribution is 33% they will need to operate at about $100 MM in sales, before they have contribution to the bottom line, is that included in you calculations? Thanks in advance.