logo
Share SHARE
FONT-SIZE Plus   Neg

Spansion Posts Profit In Q4; Q1 Outlook Disappoints; Shares Fall

Flash memory chips maker Spansion Inc. (CODE) Tuesday reported a profit for the fourth quarter, compared to a loss last year, aided by lower costs and the absence of some charges. However, the stock fell nearly 9 percent in afterhours trading, as the company issued first-quarter profit forecast well below analysts' expectations.

Net income for the quarter was $6.9 million or $0.11 per share, compared to a net loss of $74.4 million or $1.25 per share for the year-ago quarter.

Excluding items, earnings were $0.34 per share, while it stood at a loss per share of $0.68 last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales rose to $224.0 million from the previous year's $220.02 million. Analysts expected revenues of $234.40 million for the quarter.

Gross margin was 32.1 percent compared to 1 percent last year. Cost of sales declined to $152.05 million from $217.81 million in the prior year. Further, the prior year had restructuring charges of $12.3 million.

Looking ahead to the first quarter, the company expects to report between a loss of $0.05 per share and a profit of $0.06 per share. Net sales are estimated to be in the range of $180 million to $205 million.

Analysts currently expect the company to earn $0.27 per share on revenue of $225.84 million for the first quarter.

CODE settled up 0.7 percent at $13.17 on Tuesday, but declined almost 9 percent in the extended trade to $11.99.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The recent week marked the lull before the storm, with very few market moving economic numbers released during the week. However, the economic news flow picks up pace in the upcoming week, offering glimpses into every vehicle of economic growth, ranging from consumers to private sector activity to housing.... Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations.
comments powered by Disqus
Follow RTT