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Technology Stocks : Spansion Inc.
CY 23.820.0%Apr 16 5:00 PM EST
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To: KeithDust2000 who wrote (3672)4/1/2008 3:48:44 AM
From: BUGGI-WO  Read Replies (1) of 4590
 
Analysts - from CITI

From a INTC paper:
"
Numonyx Closes The End Of Intel’s NOR Era
? What's New — Intel announced the long awaited closure of its transaction with
STMicroelectronics and Francisco Partners and the formation of Numonyx, an
independent company. As expected, Intel transferred all of its NOR flash and
certain phase change memory assets as well as 2,500 employees in exchange
for 45.1% ownership in Numonyx and a $144M subordinated note receivable.
? Financial Implications — We are adding a one-time $300M charge to our 1Q08
estimate for the additional non-cash impairment charge of NOR flash assets.
This lowers our estimated 1Q08 GAAP EPS to $0.25 from $0.28 and 2008 to
$1.28 from $1.32. Our valuation is unchanged and target price remains $26.
? View Of NOR Divestiture Unchanged — Our view of Intel’s NOR divestiture is
unchanged and had previously modeled the impact of the deal, except for the
one-time charge. Our current model removes the NOR revenues dilution to
gross and operating margins. Additionally, we have reflected a $162M loss in
2Q08-4Q08 from Intel’s 45.1% ownership in Numonyx through equity holdings.
? Conclusion — The closing of the Numonyx deal marks the end of the NOR era
at Intel which continues to show solid execution on its strategic objectives. Our
view into the quarter remains unchanged as we remain buyers of Intel as well
as Altera (ALTR.O; US$18.43; 1H) and remain near-term cautious on Texas
Instruments (TXN.N; US$28.27; 2M) and Nvidia (NVDA.O; US$19.79; 2S). We
continue to believe the semiconductor sector is in the bottoming phase, that
near-term earnings cuts will create the bottom, and that Y/Y growth trends will
support this view.
"

BUGGI
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