Spansion posts Q1 profits, since going public

SAN FRANCISCO, USA: Spansion Incorporated, the flash memory vendor, based in Sunnyvale, California, the United States, has reported profits for the first quarter since it went public in December 2005, notwithstanding a drop in sales.

In a statement, Spansion said it plans to come out of the bankruptcy protection in the first quarter of 2010. The company had filed for bankruptcy protection in March 2009 because of a series of losses.

For the third quarter ended September 27, 2009, Spansion recorded sales worth $327.6 million and a net income worth $1.5 million (or, 1 cent per share). It was also the first profitable quarter for the company since it went public in December 2005.

The sales of Spansion for the most recent quarter came to $327.6 million – down by 13 per cent from the previous quarter, and down by 48 per cent from the same quarter one year before.

Spansion said its sales fell steadily over the lat 5 quarters owing to a slump in its restructuring activities that were aimed at realigning its business to support a target market of flash-memory applications.

John Kispert, president and CEO of Spansion Incorporated, said in the statement that the company has, over the last 9 months, taken a number of “difficult actions” pertaining to restructuring, and now the company is free to focus on its future.