Some random notes from the CC:
- Spansion expects to get some cash from the deal with ASE (basically selling a portion of their non core operations for cash). There was no indication about how much, but Bertrand mentioned something about 'a much smaller Spansion after this deal', so hopefully it is a couple of hundred million or more.
- Ecoram will get revenue in Q4, expectations for 2009 are on the order of magnitude of $100M, and 'much higher' in 2010. If this is correct, this could be a good business, providing 10% (my guesstimate) of their revuenue in an niche without competition, so with good margins.
-Total available cash around 350M, there is still 150M available in their credit line.
-Q3 marketshare rose to 43% (compared to 33% a year ago), did I hear that correctly?
- NOR has a stable pricing environment (8 to 9% ASP/bit down Q/Q, while NAND was down 40% Q/Q).
- Revenue from Q1 was behind schedule because the ORNAND market in Japan collapsed because of a new law prohibiting subsidized cell phones. Apparently this law may be rolled back to support the Japanes cell phone industry, which would set the ORNAND market on fire, but there's not counting on this for their Q4 revenue.
- The 90 nm content delivery business they exited was the quadbit business, because uncompetitive price wise with NAND. They sold their inventory for whatever they could get. They should be more price competitive with 65nm 300mm quadbit, but they were not clear wether they would pursue this market.
- Overall, the focus of the CC was on their cash position and their financing requirements. In this respect it is good that they expect to be free cash flow positive in Q4, because it appears that their cash positions are very low. |
