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

To: FMK who wrote (7016)	1/12/1999 2:39:00 AM
From: Larry Brubaker	Respond to of 27311

Now you are twisting my words, Fred. I said what Lev said is the capacity of Line 1 is 5 cells per minute and they can break even on cash at 1,800 batteries per day. If so, they need to produce 1,800 X (3 cells/battery) to break even on cash, or 5,400 cells per day. At the full capacity (which I doubt they will initially be able to achieve) this equals 2.25 shifts per day operating Line 1 to break even on cash, not less than one shift to earn a profit. Note that this calculation is not inconsistent with Lev's comment at the August conference call that they can earn a profit with one line only. The difference is that it takes Line 1 running at full capacity for more than 2 shifts per day to get to the cash break even point, and they are not "earning a profit on one line operating at less than one shift per day."