Friday, October 28, 2011
NOR flash memory vendor Spanion Inc. will close a test and assembly facility in Kuala Lumpur, a move that will save the company about $30 million per year, Spanion said Thursday (Oct. 27).
"With macroeconomic weakness expected to continue in the near-term, we are taking proactive measures to reduce operating expenses while strengthening customer relationships and accelerating adoption of new products to position Spansion for long-term market leadership," said John Kispert, Spansion's president and CEO, in a statement.
Spansion said the company would consolidate its test and assembly operations into a single site near Bangkok. About 660 jobs will be cut as the result of the closure of the Kuala Lumpur facility.
Also Thursday, Spansion (Sunnyvale, Calif.) reported third quarter sales of $258.2 million, down 14 percent compared to the second quarter and down 19 percent compared to the third quarter of 2010. Spansion reported a net income in accordance with generally accepted accounting principles (GAAP) for the quarter of $7.3 million, down from a GAAP net income of $25.3 million in the previous quarter. In the third quarter of 2010, Spansion posted a GAAP net loss of $64.9 million.
Spansion's third quarter sales came in slightly below consensus analysts' expectations of about $260.8 million per year, according to Yahoo Finance.
For the fourth quarter, Spanion said it expects sales to further decline to between $205 million and $225 million. The company said it expects to report a GAAP net loss of 53 cents to $1.12 per share.
Spansion's fourth quarter sales target came in significantly below consensus analysts' expectations of about $264.3 million, according to Yahoo Finance.
Spansion emerged from bankruptcy last May, 15 months after filling for chapter 11 bankruptcy protection.
By: DocMemory
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