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Analysis: Will Spansion pull off a comeback?

Posted: 24 Jun 2010     Print Version  Bookmark and Share

Keywords:Spansion comeback  NOR flash  memory market  NAND 

"For the record: I am bullish on Spansion. They have dramatically reset their goals," said Jim Handy, an analyst with Objective-Analysis.

"In the past both Spansion and Numonyx tried to prevent NAND from displacing NOR in their biggest market, camera phones, by pricing their high-density NOR competitively against a NAND+NOR or all-NAND alternative," Handy said. "This forced them to perform over-aggressive and costly process migration and it put their NOR prices at the mercy of NAND's dramatic price collapses."

Now, Spansion has a different strategy. "The new Spansion has shed that business, keeping the part of NOR in cell phones that doesn't compete against NAND along with all of the NOR market outside of cell phones," Handy said. "In these markets they have perhaps the lowest cost structure of any NOR maker, so they will do well against the many smaller NOR makers and will compete head-to-head with Micron/Numonyx."

"With the current conservative management style and using the capex investments made in 2007-2008, I see Spansion being able to right their ship," said Alan Niebel, president of Web-Feet Research.

"The current shortage of NOR with its higher prices buoys their expectations to be able to meet their 2010 plan of $1.15 billion to 1.24 billion (in sales). As to their longevity, I see them still being a player in the NOR market and perhaps some speciality NAND markets," he said. "Perhaps, they will get back to the $2 billion [Rs.9,181.07 crore] revenue range if the markets grow in the next three to five years. Otherwise, they will stay fairly flat revenue-wise for the next three years."

- Mark LaPedus
EE Times

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