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To: rsi_boy who wrote (190011)	3/17/2006 4:55:24 AM
From: Rink	Read Replies (1) \| Respond to of 275872

Rsiboy, re: Spansion. There are no reports of steep NOR price declines at the moment (unlike NAND that has been declining). Q1 though is the quarter when a lot of corporate contracts that make up most of Spansions business are being renegotiated. Spansion's guidance (a slight sequential decline in first quarter net sales due to seasonality) hasn't been changed. EDIT: A bit more detail (I guess I was on a roll): Spansion upped their schedule of quadbit a bit to EOY. Spansion looks to break even in H2 like projected. Increasingly superior technological fundament that'll carry the stock for the next couple of years. The analysts are satisfied with management focus on execution. Major down side is that it competes against Intel. When Intel has 90nm capacity to spare they are likely to up their NOR flash production significantly which will have a direct effect on pricing. Intel has much less corporate contracts for flash than Spansion. Their portfolio is significantly smaller. They already use 300mm fabs (whereas Spansion is in the process of getting one). Intel produces flash to keep depreciation from old fabs in check (like AMD used to) and doesn't need to profit from it like Spansion. Intel's 2bits/cell technolgoy (Strataflash) can't be developed into 4bits/cell. Mirrorbit is. This will be a huge differentiator H2 '07. Spansion's Quadbit is projected to have a slight cost advantage over NAND (that can't be developed into 4b/cell either but migrates much sooner to newer process nodes). Bottom line: Spansion's roadmap will continue to attracked high profile customers. Intel's roadmap is less strong but they can afford selling below cost price. I think Spansion has a good chance to double in two years. Based on this there's a good chance I up my investment in Spansion common e.g. halfway through Q2 (leverage achieving break even in addition to growth prospects). More info's available on the Spansion board: Subject 56255 Regards, Rink