SAN FRANCISCO—Flash memory vendor Spansion Inc. Thursday (Jan. 26) reported a revenue decline for the fourth quarter and a net loss that was partly attributed to charges related to the company's restructuring.
John Kispert, Spansion's CEO, called the fourth quarter a "transitional" quarter for the company. Though he emphasized that Spansion was committed to supporting wireless handset vendor customers with future products, he said the company is reducing new development activities at its older multi-chip package NOR flash products. The financial impact of the segment will soon be insignificant as Spansion integrates its wireless business into its consumer segment.
Spansion (Sunnyvale, Calif.) reported fourth quarter sales of $220 million, down 15 percent from the third quarter and down 33 percent from the fourth quarter of 2010. The company reported a net loss for the quarter of $74.4 million, compared to a net income of $7.3 million in the third quarter and a net loss of $13.6 million in the fourth quarter of 2010.
Spansion announced in November that it would restructure its manufacturing operations, closing its test and assembly facility in Kuala Lumpur and eliminating 750 jobs. The restructuring resulted in a charge of $57 million, $12 million of which was cash primarily related to severance and asset transfers, Spansion said. The remaining $45 million was non-cash, including $33 million related to the write-off of wireless inventory, Spansion said.
Spansion said it snagged 450 new design wins in the fourth quarter and that qualification is underway on its 45-nm NOR flash devices.
Spansion said it expects sales for the first quarter to be between $210 million to $230 million. The company said it expects to report a loss in accordance with generally accepted accounting principles of 21 to 34 cents per share.
"Business looks pretty good for us," Kispert said.
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