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

To: FMK who wrote (5930)	12/12/1998 6:08:00 PM
From: Dennis V.	Respond to of 27311

Interesting, thanks. eom

To: FMK who wrote (5930)	12/12/1998 8:16:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 27311

FMK, that is a good start. Let me ask another puzzling question. I visualize the process as,in essence, multiple silkscreening steps (or other electrode and electrolytes deposition processes) followed by lamination and sealing processes (and that is repeated few time to build up the right capacity?), and then possibly some aging (pulse initiation of the batteries) and finally packaging of the laminates in a final enclosure. I have difficulty visualizing 270 people working on one or even two lines, so I assume that a big portion of this personnel is engaged in other activities, do you have any idea of the head count distribution between the manufacturing floor and "other floors" and will that other floor (SG&A and R,D&E) continue and increase its head count at the same rate. I am also wondering why Red Chips assumed $20 per battery and you assume $75, are these difference in capacity? Finally, you quote that at three shifts, the line will produce 4 MM batteries yearly (the laptop line). That is about 25% of yearly shipments of laptops (at least the number I have of about 20 MM annually, but this number could be a year or two outdated). Is there a reason to believe that they can capture such a large portion of the total market? Could the numbers you cite relate to cells rather then full batteries? I also presume that different users will want their own custom form factor and thus down times for change overs should take some of the capacity (20% ?) of the line off during change overs. Is that how it works or all the OEM are going to use exactly the same form factor. Zeev