Spansion eyes aggressive road map after strong Q2
Brian Fuller7/31/2012 7:15 PM EDT
SUNNYVALE, Calif.--Memory maker Spansion, which reported strong second-quarter earnings today, has an "aggressive" roadmap to boost its product-introduction rate and break its latest design-win record, its CEO, John Kispert, said today.
Kispert spoke shortly after his company reported Q2 2012 revenue up 11 percent from Q1 to $233.4 million. Net income of $26 million compared with a first-quarter loss of $13.1 million. While the company positioned the numbers as a growth story, the company's quarterly sales still were down 22 percent from the same quarter in 2011, although quarterly profits in that same period were up slightly. Here's a link to the company press release.
The quarter marked another respectable milestone for a company that little more than two years ago went through a near-death experience with bankruptcy reorganization, early in Kispert's tenure. The company's recent fourth- and first-quarter losses were attributed in part to reorganization costsassociated with shedding of its test operations overseas.
Forward progress
"We're definitely getting there," Kispert said in a phone interview. "We'll keep up the pace. We're on a very aggressive road map."
Spansion reported a record 458 design wins in the period. Kispert attributed that partly to strategic positioning ("We're a products company") and partly to product expansion that includes not only its memory portfolio but its recent move into designs that offer a mix of memory and logic.
In June, the company teamed with Nuance Communications to create the Spansion Acoustic Coprocessor. The first two members of the new family are targeted at car infotainment systems.
"We're growing the markets that we're in," Kispert said, alluding to the fact that the acoustic coprocessor gives Spansion to move beyond existing memory-only design wins in automotive systems.
For the third quarter, Spansion expects revenue to fall in the $230-$250 million range, with rising gross margins into the 35-38 percent range.
In the just-finished period, the company's application revenue changed slightly from Q1 to Q2:
| | | | .
| Revenue by market | Q1-2012 | Q2-2012 | .
| Consumer | 36% | 37% | .
| Transportation & Industrial | 32% | 26% | .
| Communications & Gaming | 21% | 31% | .
| Wireless | 6% | 3% | .
| Royalty | 5% | 3% | .
| Total | 100% | 100% |
On a U.S. GAAP (generally accepted accounting principles) basis, Spansion reported second quarter net sales of $233.4 million, gross margin of 31.7%, operating income of $37.8 million, net income of $26.0 million and diluted EPS of $0.43. GAAP net income includes a one-time gain of $28.4 million from sale of the Company's former manufacturing operation facility in Kuala Lumpur, Malaysia, the company said.
On a non-GAAP basis, net sales totaled $233.4 million, adjusted gross margin was 35.5%, adjusted operating income was $25.0 million, adjusted net income was $13.7 million and adjusted diluted EPS was $0.22, the company said.
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