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Today's news alerts include: Spansion to Pursue Standalone Strategy Focused on Embedded Solutions Market
New business model aimed at generating positive free cash flow and profitability --- Restructuring plans on track; cash balance at approximately $195 million --- Plans to pursue strategic alternatives for wireless business
SUNNYVALE, Calif. -- Spansion Inc. (Nasdaq: SPSN), the world's largest pure-play provider of Flash memory solutions, today announced that the company has decided to pursue a standalone strategy focused on the embedded solutions market and intellectual property licensing. As a result, the company plans to pursue strategic alternatives for its wireless business.
The company also continues its discussions with creditors regarding its restructuring plans, which will ultimately require court approval. The company expects to successfully emerge from its Chapter 11 restructuring process with a sustainable business model aimed at maximizing recovery for creditors; generating positive free cash flow and profitability; and designed to support annual revenues of approximately $1 billion. In addition, the company announced that it believes it has adequate working capital - approximately $195 million in cash as of April 19, 2009 (including approximately $110 million in the U.S.) to support its strategy to emerge as a successful and viable standalone entity.
"Spansion is by far the largest supplier of NOR Flash memory to embedded markets worldwide and is the leader in charge-trapping technology, which we believe has great licensing potential," said John Kispert, president and CEO, Spansion Inc. "Our plan is to leverage our award-winning MirrorBit technology, exceptional customer relationships and innovative industry-leading products to seek sustainable profitability and positive free cash flow."
Spansion plans to continue to support its wireless customers as it pursues strategic alternatives for that business. The company's decision to narrow its focus results from Spansion's proven success in addressing customers producing embedded applications which include consumer, gaming, set-top box, industrial, automotive, PC and PC peripherals, data center servers, telecommunications infrastructure and networking.
The company enjoys a commanding leadership position in this market, with over twice the sales of its closest competitor in 2008 according to market research company iSuppli. The company plans to dedicate its resources to serving the embedded solutions market and plans to grow its market opportunity through its innovations based on its MirrorBit technology.
The company has made substantial progress in bringing its new innovative product architectures to market. Spansion has completed the beta process for its Spansion EcoRAM products and has received initial orders, with first revenue expected in April. The company also has first silicon in-house of its new NAND product offering based on Spansion's charge-trapping technology, 43nm MirrorBit NAND products, with plans for sampling in 2009 and production in 2010. In addition, Spansion is in full production of its industry-leading 65nm high density solutions optimized for the embedded solutions market, and plans to have 45nm MirrorBit NOR solutions sampling in 2009 and in production in 2010.
Spansion, Spansion LLC, Spansion Technology LLC, Spansion International, Inc. and Cerium Laboratories LLC filed their voluntary petitions for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware on March 1, 2009. On February 9, 2009, Spansion's Japanese subsidiary, Spansion Japan Ltd., voluntarily entered into a proceeding under the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to obtain protection from its creditors as part of the company's restructuring efforts. None of Spansion's subsidiaries in countries other than the United States and Japan are included in the U.S. or Japan filings.
About Spansion
Spansion (NASDAQ: SPSN - News) is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing, selling and licensing Flash memory solutions. For more information, visit http://www.spansion.com.
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