Spansion looks for return to profitability in Q2

Spansion looks for return to profitability in Q2

SAN FRANCISCO—Flash memory vendor Spansion Inc. Thursday (April 26) reported a loss on declining sales for the first quarter, but said it expects a revenue increase and return to profitability in the second quarter.

"I think it's safe to say there is increased confidence with customers," said John Kispert, president and CEO of Spansion, when asked about the second quarter environment. Kispert, who acknowledged that the first quarter was a challenging quarter, said Spansion secured a number of design wins in the quarter and that it was having success with new products.

Spansion, which also reported a loss for the fourth quarter of 2011, last turned in a profitable quarter in the third quarter of last year.

Spansion (Sunnyvale, Calif.) reported first quarter sales of $219 million, down nominally from the previous quarter and down 25 percent compared to the first quarter of 2011. Spansion reported a net loss in accordance with generally accepted accounting principles (GAAP) of $13 million, or 22 cents per diluted share, narrowed from GAAP net losses of $74.4 million and $14.1 million in the previous and year-ago quarters, respectively.

On a non-GAAP basis, excluding charges, Spansion reported a net income of $4.4 million, or 7 cents per share, compared with a non-GAAP net loss of $7.3 million in the previous quarter and a non-GAAP net income of $29.6 million in the year-ago quarter.

Spansion's first quarter sales were slightly below consensus analysts' expectations of about $221 million, but the company's non-GAAP earnings per share exceeded analysts' target of 1 cent, according to Yahoo Finance.

Spansion said it expects second quarter sales to grow modestly to between $220 million and $235 million, roughly in line with consensus analysts' expectations at the high end, according to Yahoo Finance. The company said it expects to report a profit for the second quarter of 34 to 43 cents per diluted share.


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