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

To: bobs10 who wrote (3513)	3/6/2008 11:12:43 AM
From: Joe NYC	Read Replies (1) \| Respond to of 4590

Bobs, Implicit in the SP1 news is a production cost advantage of much better than the 30% announced as well as a $50m reduction in outside foundry costs. Keep in mind that the costs of SP1 (costs of sales + depreciation) will hit the income statement, which will offset some or all of the $50m. But the difference is that depreciation is a non-cash item, while paying TSMC is a cash item. So cash generation is going improve, but full P/L impact is still unknown. Joe