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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (2555)	11/14/2007 6:35:01 PM
From: Joe NYC	Read Replies (2) \| Respond to of 4590

UBS Presentation highlights: - Mirrorbit - 71% of revenue - Spansion has 32% market share year to date - strong unit growth, ASP difficult (slides have not been posted) - capitalization of Numonyx gives us indication that they are not capitalized to make an investment in 300mm capability - Spansion has a head start on 300mm - supply reduction - supply taken out as a result of the consolidation (of STM and Intel) - normally ASP per megabit typically 6% reduction QOQ - Q1 -12%, Q2 -18%, Q3 +7% (influenced by higher densities, but down 3-5% per megabit) - ASP stabilizing - Q3 built $611M, booked $790M of new orders - good backlog for Q4 and beginning of Q1 - looks like a good Q4 - but Q4 is normally good - positioned itself with inventories, expect strong demand through 1st hals of Q1 - impact of 300mm per die 25% cost reduction - node migration, 30% cost reduction - 1B cap ex invested in a down cycle to differenciate themsleves - liquidity: $530M at the end of Q3, $200M available on credit line, some revolver capacity, generated $70M of cash flow generated in both Q2 and Q3, expected to pick up $80M from acquisition of Seifun - over next 4 quarters, expect $1.2B of liquidity - 2008 max capex of $700M. Byt cautions until seeing better operating results, but have liquidity is there to do what they need to do - debt structure: maturities starting in 2013, ample time to see returns from SP1 - Saifun takeover - vertical integration - execting to enter technology licensing - 70% cost front end 30% back end. Node migration, 300mm influences front end, BIST will influence back end. Q/A: BIST - 30% cost reduction of 30% back end cost SMIC - foundry relationship - will license SMIC to sell Quad Bit in China Samsung - was aggressive in H1 in China - subdued in Q3. Samsung is the competitor to keep an eye on. But they have a competitive conflict with customers. Samsung has a separate NOR capacity (not shared with DRAM and NAND) - old fab, and the capacity is apparently filled. 45nm, phase change: (I don't know if I got this right) Competitors are planning to move no phase change for 45nm - die sizes will be bigger than Spansion NOR - may not be commercially competitive with Spansion. investor.spansion.com Joe