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

To: Rink who wrote (3182)	1/24/2008 3:47:02 PM
From: bobs10	Respond to of 4590

you: 'total build' goes from 60 to 54. Is this 6 less or 58 more than 60? (it seems I never know enough english...) me: Well, maybe it meant something to the analyst, but it left me confused too. I think the gist of the matter is that depreciation is going to be up in q1 without corresponding product in q1. That will end in q2 when the SP1 floodgates are opened. There are some other nonrecurring costs that also need to be absorbed in q1.

To: Rink who wrote (3182)	1/24/2008 4:33:52 PM
From: Joe NYC	Read Replies (1) \| Respond to of 4590

Rink, I was confused about that part as well. First while I listened, and then I found the same thing in the transcript. Another thing that I was confused was about starting this: "You see here the ramp up of that factory and to put a number here, we are currently executing to a 2,000 wafer start per week. We expect essentially to start wafers at 65 nanometer in SP1 in February and we expect to have wafer out some time in Q2 in such a way that we’re going to have full financial benefit as early or as late Q2 and with the full part of the second half of the year." It is on page 3. Is he talking about being at 2,000 wafer starts in February? That would make sense. But it sounds like February would be the time for the first wafer starts... I think the correct interpretation is that Spansion is ramping up to 2,000 wpw, and the ramp will reach the 2,000 wpw level in February. That's not bad, BTW. Spansion mentioned that they will need to have some CapEx in early 2008 to enable it (2k wpw), and after that, te Capex will go down. Based on this, Q1 will be kind of tough, but things should improve from there. I am hoping that Spansion will convert some of that inventory to cash, so that the cash levels don't go down too much during this Q. Joe