Spansion consolidates test and assembly ops

October 31, 2011 – PRNewswire — Flash memory provider Spansion Inc. (NYSE:CODE) will consolidate its 2 semiconductor assembly and test services (SATS) operations, closing its facility in Kuala Lumpur, Malaysia, to reduce costs by about $30 million annually.

John Kispert, Spansion president and CEO, referenced the "global economic challenges" in announcing the cost-cutting measure. Spansion emerged from bankruptcy in May 2010. TI took over a Spansion fab in Japan later that year.

Spansion released operating results for its third fiscal quarter ended September 25, 2011. On a U.S. GAAP basis, Spansion reported net sales of $258.2 million, operating income of $23.2 million, and net income of $7.3 million. On a non-GAAP basis, net sales totaled $258.2 million, adjusted operating income was $46.7 million and adjusted net income was $30.3 million. For the fourth quarter of 2011, Spansion estimates U.S. GAAP net sales in the range of $205 million to $225 million, GAAP net loss per share of ($1.12) to ($0.53).

Upon emergence from bankruptcy on May 10, 2010, Spansion adopted fresh start accounting in accordance with U.S. GAAP. The adoption of fresh start accounting resulted in Spansion becoming a new entity for financial reporting purposes, whereby the U.S. GAAP financial statements on or after May 10, 2010 are not comparable to the financial statements prior to that date. Fresh start accounting required resetting the historical net book values of Spansion’s assets and liabilities to the related fair values. References to "Successor" refer to Spansion and its consolidated subsidiaries after May 10, 2010, after giving effect to the cancellation of old common stock issued prior to May 10, 2010, the issuance of new common stock and settlement of existing debt and other adjustments in accordance with the reorganization plan, and the application of fresh start accounting. References to "Predecessor" refer to Spansion and its consolidated subsidiaries prior to May 10, 2010.

Spansion (NYSE: CODE) offers a broad Flash memory product portfolio. For more information, visit http://www.spansion.com.

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