Spansion operating income climbs to $20.7 million in fourth quarter

By Caroline Salls

Pittsburgh, Jan. 15 - Spansion Inc. reported $20.7 million of fourth-quarter operating income on $307.1 million in net sales, according to a company news release.

In comparison, the company posted $20 million of operating income for the third quarter of 2009 on $327.6 million in net sales and a $2.007 billion operating loss for the fourth quarter of 2008 on $468 million in net sales.

The net income for the fourth quarter of 2009 was $4.3 million, improving from $1.5 million of net income for the third quarter of 2009 and a $2.077 billion net loss for the fourth quarter of 2008.

"Spansion's core markets showed strength this quarter and helped the company easily surpass our expectations for revenue in 2009," president and chief executive officer John Kispert said in the release.

"With our restructuring and reorganization activities largely behind us, we look forward to continued strong results in 2010."

According to the release, the company increased its cash position by more than $61 million and ended the fourth quarter of 2009 with $324.9 million in cash, compared to $263.6 million at the end of the third quarter of fiscal 2009 and $116.4 million at the end of the fourth quarter of 2008.

"The continued margin improvement on lower net sales is a result of Spansion's strategy to focus on embedded and targeted wireless applications," chief financial officer Randy Furr said in the release.

"The company's sound financial management, including operational expense control and working capital management, helped increase the cash position over $225 million since first quarter 2009, resulting in approximately $325 million of cash and equivalents at year-end."

In addition, Spansion reported a $105.24 million operating loss for the year ended Dec. 27 on $1.411 billion in net sales, compared with a $2.272 billion operating loss for the year ended Dec. 28, 2008 on $2.282 billion in net sales.

The net loss for full-year 2009 was $514.06 million, narrowing from a $2.435 billion net loss for 2008.

Spansion, a Sunnyvale, Calif.-based maker of flash memory products, filed for bankruptcy on March 1, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10690.

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