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

To: BUGGI-WO who wrote (2571)	11/15/2007 1:01:51 PM
From: Joe NYC	Respond to of 4590

Buggi, The key for Spansion now is to come in at good revenue level. BTW, the record revenue Spansion had was Q4 2006 at $687M. Spansion would have to show an increase of 12.5% from Q3 levels to beat that. The official outlook is: The company expects net sales for the fourth quarter of 2007 to be in the range of $640 million to $700 million with growth in all major business segments. Coming in the high end of the guidance would certainly spark some investor interest. While the profitability is not exactly imminent, the key for Spansion to get from bargain basement is stability of the cash situation and revenue. On the cash side, the number to watch will be the cash flow from operations. If last 2 Qs were at $70M, we should expect at least $90M in Q4. With some cash coming in from SFUN (when is it expected to close, this Q or next?) plus cash flow from operations, the cash balance should cease to be an issue. While Spansion has a record of under-delivering (on the financial end), strong BTB and stabilization of ASPs (reiterated at UBS presentation) should give us some hope that Spansion will deliver this time. Even the mid-point of the guidance ($670M) would be good. High end of the guidance will hopefully return us to the double digits... Joe