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

To: Rink who wrote (3186)	1/25/2008 8:55:29 AM
From: Joe NYC	Read Replies (1) \| Respond to of 4590

Rink, Regarding inventories, they seem to be on the high side, which means Chinese New Year should be no problem at all. I think the bigger concern is whether they are too high. Spansion mentioned that higher inventory level was partially affected by preparation to cut down substantially the purchases of material from TSMC. I was trying to come up with scenarios under which it would make sense to buy + build mre in Q4 in order to switch to internal consumption. But I could not come up with any reasonable scenario. The only 2 things I can think of: - Spansion was trying to be prepared for higher demand in Q4 (high end of the guidance was much higher than the actual - Spansion made a commitment to purchase certain quantity from TSMC (probbly o get favorable pricing) and had to take delivery Joe