Spansion Updates Fourth Quarter 2008 Outlook | Cypress Semiconductor
Spansion Updates Fourth Quarter 2008 Outlook
SUNNYVALE, Calif., Nov 24, 2008 --
Spansion, Inc. (Nasdaq: SPSN), the world's leading pure-play provider of Flash memory solutions, today announced an update to its outlook for its fourth quarter ending December 28, 2008.
In anticipation of a weak holiday season, Spansion's customers are shutting down factories, and slowing down manufacturing run rates. As a result, Spansion anticipates that net sales for its fourth quarter of 2008 will be approximately 20% lower than its previous quarter. Spansion is taking action by cutting COGS (cost of goods sold) by approximately 15%, and further reducing operating expenses.
Spansion (Nasdaq: SPSN - News) is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing, selling and licensing Flash memory solutions. For more information, visit http://www.spansion.com.
Spansion(R), the Spansion logo, MirrorBit(R), MirrorBit(R) Eclipse(TM), ORNAND(TM), ORNAND2(TM), HD-SIM(TM), Spansion(R) EcoRAM(TM) and combinations thereof, are trademarks of Spansion LLC in the U.S. and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to Spansion's expectations for sales, cost of goods sold, and other operating expenses in the fourth quarter. Investors are cautioned that these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements. These risks and uncertainties include that demand for the company's Flash memory products will be lower than currently expected; that average selling prices may decline; that adverse financial market conditions may impede access to or increase the cost of financing operations and investments; that Spansion may not be effective in expense reduction efforts; that OEMs will increasingly choose NAND-based Flash memory products over the company's MirrorBit architecture-based Flash memory products for their applications; and that our recently-filed lawsuit against Samsung could result in increased costs, diversion of management and key employees, adverse results, and consequences arising from naming certain of our customers in the lawsuit, including potential countersuits and decreases in revenues from such customers. In addition, the instability of the global economy and tight credit markets could continue to adversely impact our business in several respects including adversely impacting credit quality and insolvency risk for our customers, bookings, reductions and deferrals of demand for our products, weakening credit quality or potential insolvency of our business partners including suppliers and distributors. This environment has significantly increased the difficulty of predicting revenue and operating results and makes any forecasts riskier than under normal circumstances. The company urges investors to review in detail the risks and uncertainties discussed in the company's Securities and Exchange Commission filings, including but not limited to the company's Annual Report on Form 10-K for the fiscal year ended December 30, 2007 and the company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2008. Spansion assumes no obligation to update any forward-looking statements included in this press release.