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
American Express Co. said that beginning in April 2018, card members will not be required to sign receipts for their credit card purchases. The company thus joins other major card companies such as Mastercard Inc. and Discover Financial Services Inc., who have previously announced similar changes. Costco members can now enjoy MoviePass subscription service and Fandor streaming service for $89.99. The subscription will be for one year. The offer will be available on Costco website for up to December 18. The annual subscription will offer access to Fandor's library of more than 5000 films and... A Houston woman has said that Spirit Airlines Inc. kicked her family off a flight Friday morning as she did not immediately stop breastfeeding her 2-year-old son. Mei Rui, a concert pianist and cancer researcher, said she was asked by flight attendants to stop breastfeeding her son and put him into his own seat for takeoff.
comments powered by Disqus
Follow RTT