Spansion Inc. Message Board

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Technology Stocks : Spansion Inc.

CY 23.82

0.0%

Apr 16 5:00 PM EST

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To: Mike30 who wrote (4304)	10/29/2008 4:23:40 PM
From: Joe NYC	Read Replies (1) of 4590

Mike, They burned through about $89M, which included $110M CapEx. CapEx is going to drop to $40M, or about $70M drop, so if nothing changes about the business, Spansion should burn through $19M next quarter. But, other variables should result in cash expenditure savings, swinging the $19M negative to positive (Spansion's outlook). Spansion didn't predict any increase in CapEx going forward, so the number to look at, is cash flow in range of -$20M to + $20M IMO. My 3 more Quarter survival was based on what will happen if they keep burning thru the cash at current rate which is 100M per Quarter and with the same performance. Your figure ignores CapEx drop. Spansion is done paying for the current phase of equipping SP1, which you are not taking into consideration. Joe

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