SAN FRANCISCOFlash memory vendor Spansion Inc. Thursday (Dec. 31) reported its first quarterly profit since going publicdespite declining salesand said it plans to emerge from bankruptcy early in 2010.
For its third quarter ended Sept. 27, Spansion (Sunnyvale, Calif.) posted sales of $327.6 million and a net income of $1.5 million, or 1 cent per share, in accordance with generally accepted accounting principles. It marked the first profitable quarter for Spansion since the company went public in December 2005.
Spansion filed for bankruptcy protection in March amid a string of losses. The company said Thursday it plans to emerge from bankruptcy in the first quarter of 2010.
"Over the past nine months we have taken a number of difficult actions relative to restructuring," said John Kispert, Spansion president and CEO, in a statement. "I am proud to say that we now have those efforts behind us and can focus on the future."
Spansion posted sales for the most recent quarter of $327.6 million, down 13 percent from the previous quarter and down 48 percent from the year-ago quarter. Sales by the firm have declined steadily over the past five quarters. The company attributed the decline to restructuring activities to realign its business to support a refined target market of flash memory applications.
Randy Furr, Spansion's chief financial officer, said the firm is executing well against its plan and that its net income for the third quarter improved by roughly $135 million year-to-year. "By focusing on our core businesses and exiting unprofitable applications, we have shown that our strategy is working to deliver stronger financial results," Furr said.