-- New business model aimed at generating positive free cash flow and profitability
-- Restructuring plans on track; cash balance at approximately $195 million
-- Plans to pursue strategic alternatives for wireless business
SUNNYVALE, Calif., April 22 /PRNewswire-FirstCall/ -- Spansion Inc. (Nasdaq: SPSN), the world's largest pure-play provider of Flash memory solutions, today announced that the company has decided to pursue a standalone strategy focused on the embedded solutions market and intellectual property licensing. As a result, the company plans to pursue strategic alternatives for its wireless business.
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The company also continues its discussions with creditors regarding its restructuring plans, which will ultimately require court approval. The company expects to successfully emerge from its Chapter 11 restructuring process with a sustainable business model aimed at maximizing recovery for creditors; generating positive free cash flow and profitability; and designed to support annual revenues of approximately $1 billion. In addition, the company announced that it believes it has adequate working capital - approximately $195 million in cash as of April 19, 2009 (including approximately $110 million in the U.S.) to support its strategy to emerge as a successful and viable standalone entity.
'Spansion is by far the largest supplier of NOR Flash memory to embedded markets worldwide and is the leader in charge-trapping technology, which we believe has great licensing potential,' said John Kispert, president and CEO, Spansion Inc. 'Our plan is to leverage our award-winning MirrorBit technology, exceptional customer relationships and innovative industry-leading products to seek sustainable profitability and positive free cash flow.'
Spansion plans to continue to support its wireless customers as it pursues strategic alternatives for that business. The company's decision to narrow its focus results from Spansion's proven success in addressing customers producing embedded applications which include consumer, gaming, set-top box, industrial, automotive, PC and PC peripherals, data center servers, telecommunications infrastructure and networking.
The company enjoys a commanding leadership position in this market, with over twice the sales of its closest competitor in 2008 according to market research company iSuppli. The company plans to dedicate its resources to serving the embedded solutions market and plans to grow its market opportunity through its innovations based on its MirrorBit technology.
The company has made substantial progress in bringing its new innovative product architectures to market.
