@Rink - JV1/2
A good explanation. With Fuji they have contracts to sell JV1/2
products, thats clear, we had to look into 10Qs for details,
but I could also imagine, that they have some kind of contract
with TSMC too. I don't know, if this is common sense (I assume
not) - but who knows. In the end, its the most important benefit
for a foundry and the customer, that the customer could send an
"halt" signal when demand isn't in the region, where it should
be. So doing deals with foundry should always imply some way
of flexibility, the more the better.
What I would do these days? A "problem" for Spansion are the
big inventories. It was kind of frustrating to hear, that even
with these high inventories, they weren't able to deliver all
necessary products to customers. The have to work much harder
to fix this problem - thats clear. In the end, they could
"easily" reduce inventory by 200-300Mio. and still should be in
good and healthy shape. When I look at Intel, they have around
1/3 of Revs in inventory, so for Spansion this would mean around
660/3 => 220Mio. vs. 636Mio. up to date => I wouldn't go that
far, that these levels are appr., but (as said) 200-300mio. off
would be nice and healthy. If we assume, that 100Mio. will come
from a foundry side, they could stop foundry shipments easily
for 2 quarters with own production unchanged and revs. around
our existing situation. Why not doing this? In this time, you
could plan next foundry steps, e.g. newer designs and/or a
more advanced process => 45/55/65nm. There are so many choices.
It should be clear too, that the inventory will be less worth as
time goes by, so the more you could instantly sell, the less
degr. will appear in sum. Also you have to pay less, which is
healthy for the cash situation. Products in house are already
produced, but SPSN hasn't seen a single penny for them, but
costs already appeared. Make sure you get REAL MONEY for these
products!
BUGGI |
