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
Activision Blizzard Inc. (ATVI) on Thursday reported a drop in profit for the fourth quarter, as revenues declined reflecting weak demand for Skylanders SuperChargers and Guitar Hero Live. The video game publisher's profit and revenues fell short of Wall Street estimates. Moving ahead, the company detailed... CBS Corp. (CBS, CBS-A) Thursday reported a drop in profit for the fourth quarter, hurt largely by one-time charges. However, on an adjusted basis, earnings for the three-month period increased on higher revenues across all major segments, except local broadcasting division. The New York-based company's... Tesla's next electric car Model 3 is aimed at the masses with a price tag that could go below $30,000. Tesla CEO Elon Musk, during an earnings call, confirmed that the Model 3 will start selling for "around $35k," and reservations will start from March 31 in Tesla stores and online on April 1 for...
comments powered by Disqus
Follow RTT