Valence Tech. soars amid $70 million supply contract, improved 3Q results (Valence Technology I)

Date : 02/07/2008 @ 1:46PM
Source : TFN
Stock : Valence Technology I (VLNC)
Quote : 3.03  0.29 (10.58%) @ 8:00PM
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Valence Tech. soars amid $70 million supply contract, improved 3Q results (Valence Technology I)

        NEW YORK (Thomson Financial) - Shares of Valence Technology Inc. soared to a
2-month high on heavy volume Thursday after the company said it entered into a
$70 million supply contract with The Tanfield Group Plc.
    The stock jumped 56% to $2.29, and had been up as much as % at in intraday
trading, the highest price seen since Dec. 17. Volume was 2.8 million shares, or
nearly 9 times the full-day average of about 322,000 over the past 30 days.
    The Austin, Tex.-based maker of lithium phosphate rechargeable batteries
said early Thursday that it will supply The Tanfield Group with lithium
phosphate energy storage systems to power zero emission, all-electric commercial
delivery vehicles.
    The company said Tanfield will buy up to $70 million in Valence products,
and that it has already received a firm purchase order for the first quarter.
    Separately, Valence reported a fiscal third-quarter loss of $5.7 million, or
5 cents a share, narrower than the year-earlier loss of $6 million, or 6 cents a
share. Revenue increased 46% to $3.4 million from last year's $2.3 million.
Tomi Kilgore
tk1

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