SAN FRANCISCONOR flash memory specialist Spansion Inc. became the latest semiconductor supplier to issue a warning about revenue in the current quarter, saying Monday (Nov. 24) it expects fourth quarter net sales to be down about 20 percent sequentially.
Last month, Spansion reported a loss for the third quarter of $118.7 million on revenue of $631 million.
Customers are shutting down factories and slowing manufacturing run rates in anticipation of a weak holiday season, Spansion said.
Spansion (Sunnyvale, Calif.) said it is taking action by cutting the cost of goods sold by about 15 percent and further reducing operating expenses. During the third quarter the company imposed salary reductions, cut capital spending, frooze headcount, cut research and development projects and reduced administrative expenses.