SAN FRANCISCO -- Embedded and consumer markets and a broadening
porfolio of flash memory devices will continue to drive increased
business for memory maker Spansion Inc. in the coming months, but
global economic uncertainty marked by political change is dampening
industry growth, Spansion CEO John Kispert said Thursday (Oct. 25).
"Our adoption is up, and we're getting into new markets with broader
product lines," Kispert said in an interview, as he announced
Spansion revenues of $239.7 million and profits of $5 million,
numbers within a range of financial guidance the company gave during
its second quarter. The quarter continues a strong showing from a
company that only last year came out of a difficult bankruptcy and
Spansion revenues in consumer markets (home gateways and digital
cameras, for example) were 39 percent, up a full 10 percentage points
the same quarter last year and up 2 percentage sequentially. The
company's other strong suits, gaming and communications, saw the
percentage of overall revenues rise to 32 percent from 23 percent in
the third quarter of 2011.
The company's big challenge came in its industrial and
transportation sector, which dropped to 23 percent of total revenues
from 29 percent in the same period a year ago. Automotive was flat,
and industrial sales were hampered by government spending.
"We're having record design wins [in industrial], but revenue is
weaker and that's a sign of the times," said Kispert (shown, right). "Most of our
industrial business is driven by government spending, and that's
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