SAN JOSE, Calif. -- Following its recent move out of bankruptcy, Spansion Inc. posted a drop in sales and announced its long-awaited deal with Japan's Elpida Memory Inc.
As part of the move, Elpida and Spansion expanded their existing relationship for joint development of NAND process technology and products to include a foundry services agreement for NAND flash memory.
Elpida has also secured a non-exclusive license to Spansion’s NAND IP based on MirrorBit charge-trapping technology. Elpida will produce the NAND products at its 300-mm Hiroshima wafer fab. Each company will separately market products to their customers.
As part of the expanded alliance, the companies intend to identify additional areas of cooperation, such as NOR flash memory products and manufacturing.
Recently, Spansion said that it had emerged from Chapter 11 reorganization. As reported, on March 1, 2009, Spansion (Sunnyvale, Calif.) filed for Chapter 11 bankruptcy protection. The NOR flash maker was late to emerge from Chapter 11. It was supposed to emerge in the first quarter of 2010.
On a U.S. GAAP basis, Spansion reported net sales of $255.7 million, operating loss of $3.0 million, and net income of $341.8 million. On a non-GAAP basis, adjusted net sales were $292.7 million, adjusted operating income was $40.3 million, and adjusted net income was $27.4 million.
The company posted sales of $277.3 million in the previous quarter and $376.3 million in the like period a year ago. It posted a net $3.7 million in the previous quarter and a loss of $7.3 million a year ago.
"Spansion delivered a solid quarter and is winning back customer designs," said John Kispert, Spansion president and CEO, in a statement. "We see strong customer confidence moving forward and are well positioned to continue growing in 2010."
For the third quarter of 2010, Spansion estimates U.S. GAAP net sales in the range of $285 million to $300 million, non-GAAP adjusted net sales in the range of $300 million to $320 million, GAAP earnings per diluted share of minus $0.66 to minus $0.91, and non-GAAP adjusted earnings per diluted share of $0.40 to $0.60.