some more details here-
SUNNYVALE, Calif., June 4 CA-Spansion-Productiv
SUNNYVALE, Calif., June 4 /PRNewswire-FirstCall/ -- Spansion Inc.
(Nasdaq: SPSN), the world's largest pure-play provider of Flash memory
solutions, today announced it is eliminating approximately 500 positions
worldwide, including planned consolidations, attrition, and a reduction in
regular, contract and temporary workers in manufacturing, engineering,
management and administrative support functions.
(Logo: newscom.com
The action is a part of the company's ongoing strategic effort to improve
overall productivity, which led to a $52 million reduction in manufacturing
service expenses with foundries and subcontractors in the first quarter of
fiscal 2008, compared to the fourth quarter of fiscal 2007. With better
factory utilization, including the ramp of the company's 300mm wafer
fabrication facility, and higher productivity across the organization,
Spansion can reduce its workforce and lower costs, while maintaining its focus
on next generation technology development and serving its customers. The
workforce reduction is part of this long-term strategy and is consistent with
the company's outlook as previously stated on April 16, 2008 in the first
quarter earnings press release.
"Spansion is dedicated to creating an organization that is highly
efficient, structured for maximum productivity and focused on our core
competencies," said Bertrand Cambou, president and CEO, Spansion, Inc. "Our
priority is to continue to push the leading-edge of Flash memory technology
and reshape the Flash memory industry. With our recent increase in
manufacturing output and yields, as well as productivity enhancements
throughout the company, we can streamline our organization and further reduce
costs, while continuing our rapid pace of innovation."
As part of the move to enhance productivity, the company is pursuing its
strategy to increase the ratio of its engineering and administrative functions
in lower cost regions, such as Malaysia and China. With Spansion's ongoing
focus on continuous improvement and operational efficiency, the company can
continue its technology innovation at a lower overall cost.
About Spansion
Spansion is a leading Flash memory solutions provider, dedicated to
enabling, storing and protecting digital content in wireless, automotive,
networking and consumer electronics applications. Spansion, previously a joint
venture of AMD and Fujitsu, is the largest company in the world dedicated
exclusively to designing, developing, manufacturing, marketing and selling
Flash memory solutions. For more information, visit spansion.com.
Cautionary Statement
This release contains forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including statements regarding planned consolidations, attrition, and a
reduction in regular, contract and temporary workers, the expectation of
streamlining Spansion's organization while continuing the rapid pace of
innovation, and the strategy to increase the ratio of its engineering and
administrative functions in lower cost regions with the expectation to
continue technology innovation at a lower overall cost. Investors are
cautioned that the forward-looking statements in this release involve risks
and uncertainties that could cause actual results to differ materially from
the company's current expectations. Risks that the company considers to be the
important factors that could cause actual results to differ materially from
those set forth in the forward-looking statements include the possibility that
demand for the company's Flash memory products will be lower than currently
expected; that average selling prices may decline; loss of key intellectual
property arrangements creates a greatly increased risk of patent or other
intellectual property infringement claims; the high cyclicality of the Flash
memory market which has experienced severe downturns; that adverse financial
market conditions may impeded access to or increase the cost of financing
operations and investments; that Spansion may not be effective in expense
reduction efforts; that OEMs will increasingly choose NAND-based Flash memory
products over the company's MirrorBit architecture-based Flash memory products
for their applications; that the company has a significant amount of debt, and
such debt could subject us to restrictive covenants; that the company may not
achieve facilities and capacity implementation schedules as a result of
factors such as insufficient cash flows and unavailable external financing;
that the company may lose a key customer, or experience a reduction of demand
from a key customer; that the company will not successfully develop, introduce
and commercialize new products and technologies or to accelerate our product
development cycle; that competitors may introduce new memory or other
technologies that may make our Flash memory products uncompetitive or
obsolete; that the company may fail to successfully develop next generation
products; customers' ability to change booked orders may lead to excess
inventory; that the company's investments in research and development may not
lead to timely improvements in technology; that the company may experience
manufacturing constraints or fail to achieve manufacturing efficiencies; the
company may experience manufacturing disruptions of suppliers interrupt supply
or increase prices for raw materials; that Spansion may not realize the
expected value of Saifun's NROM technology; the merger with Saifun may not
result in benefits that Spansion anticipates as a result of integration or
other challenges; and intellectual property claims or litigation could cause
the company to incur substantial costs or pay substantial damages or prohibit
sales of its products. The company urges investors to review in detail the
risks and uncertainties in the company's Securities and Exchange Commission
filings, including but not limited to the company's Annual Report on Form 10-K
for the fiscal year ended December 30, 2007 and the company's Quarterly Report
on Form 10-Q for the fiscal quarter ended March 30, 2008. The company assumes
no obligation to update any forward-looking statements or information included
in this press release.
Spansion(R), the Spansion Logo(R), MirrorBit(R), MirrorBit(R) Eclipse(TM),
ORNAND(TM), ORNAND2(TM), HD-SIM(TM) and combinations thereof, are trademarks
of Spansion LLC. Spansion, the Spansion Logo and MirrorBit are registered in
the US and other countries. Other names used are for informational purposes
only and may be trademarks of their respective owners.
SOURCE Spansion Inc. |
