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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: Joe NYC who wrote (3694)	4/2/2008 2:14:10 PM
From: Pam	Read Replies (1) of 4590

Here are some numbers as per my understanding- Ownership: INTC, STM, SFP: 45.1%, 48.6%, 6.3% (Total 100%) Cash: 585MM (450MM from 4 year term loan + 150MM from SFP less 15MM expenses paid). 100MM RC not invoked as yet. INTC & STM guarantee 225MM loan each for 4 years. Notes payable to INTC, STM, SFP: 144.4MM, 155.6MM, 20MM =320MM Total Debt: 450MM (4 year term loans)+ 320MM (Notes payable)= 770MM Estimated revs: 3B Writeoffs to be taken: INTC: 300MM in 1Q on top of 85MM in C4Q07 STM: 150MM in 1Q on top of 249MM in C4Q07 SPSN's enterprise value is just 1.4B because they have way too much debt for the revs and margins they have. Not enough CF's unless pricing and margins improve. Way too much risk until a clearer picture emerges for NOR market and pricing going forward. What it means is that SPSN will remain volatile. Most people just look at gains that could be had but forget the amount of risk they are taking.

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