SUNNYVALE, Calif., March 23 /PRNewswire-FirstCall/ -- Spansion Inc. (Nasdaq: SPSN) the world's largest pure-play provider of Flash memory solutions, today released its fourth quarter net sales results and issued its net sales outlook for the current fiscal quarter.
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In the fiscal fourth-quarter ended December 31, 2008, net sales were $468 million. During the fiscal first quarter 2009, ending March 29, Spansion anticipates net sales of approximately $400 million, driven by sales in certain telecommunications and gaming segments as well as advance purchases from certain customers, offset by continued weakness in the overall economy during a quarter that is seasonally down compared to the fourth quarter.
'Despite a troubled economy, Spansion gained segment share in the fourth quarter while keeping average selling prices relatively stable,' said John Kispert, Spansion president and CEO. 'In addition, net sales in the first quarter are an indication of the continued customer demand for Spansion solutions.'
The company also said it believes its chapter 11 cases are progressing well. The company also noted that it is looking forward to working closely with its creditors in the weeks and months ahead on a plan of reorganization for the company.
'The decisions we made to reduce costs were difficult, but necessary,' Kispert said. 'As a result of those actions, Spansion expects to meet its post-petition obligations, and is leveraging its global manufacturing facilities to meet customer demand. Spansion is experiencing relatively typical seasonal patterns during the first quarter and is conducting business as usual. We plan to continue to take the necessary actions to strengthen our cash position, to help enable Spansion to emerge from the Chapter 11 process as a stronger and more focused company.'
As part of the restructuring process, Spansion also continues to pursue strategic alternatives and is in discussions with multiple companies regarding the potential sale of some or all of the company's assets.
The unaudited results for the fourth quarter 2008 and the outlook for the first quarter 2009 are preliminary and subject to change. For example, the company is currently conducting an impairment assessment of its fixed assets, goodwill and long-lived intangible assets. This ongoing assessment will result in material non-cash charges to the income statement and an associated reduction in the carrying values of the assets disclosed on the balance sheet.
