SPANSION Bankruptcy Protection?

Posted by Kris | Thursday, February 05, 2009 | | 1 comments »

A host of problems beleaguered SPANSION. It is possible that SPANSION will be filling bankruptcy soon that you think or a target of a takeover which inevitably trigger another wave of layoff for SPANSION. See various news below.

ChipMOS drops packaging deal with Spansion
Posted: 23 Jan 2009

IC packaging and test house ChipMOS Technologies Ltd has issued a notice of breach and notice of intent to terminate a service agreement with Spansion Inc.

NOR flash giant Spansion currently has an outstanding account receivable with ChipMOS of approximately $57 million of which approximately $18 million is in default, according to the Taiwanese firm. ChipMOS provides IC packaging and test services for Spansion.

"The service agreement provides 30 days for Spansion to continue the agreement with a payment of the amount in default to ChipMOS Taiwan," according to ChipMOS. "ChipMOS Taiwan has also given Spansion notice that pursuant to Article 928 and Article 929 of the Taiwanese Civil Code it has obtained a statutory lien on the Spansion's inventory and related equipment and materials currently in ChipMOS Taiwan's possession."

ChipMOS reserves all of its rights and remedies available under the agreement and applicable law.

Recently, Spansion moved in another direction in packaging. The company and Taiwan's Advanced Semiconductor Engineering Inc. signed a memorandum of understanding to establish a venture to jointly own Spansion's IC assembly operations in Suzhou, China.

Recently, Spansion confirmed that it has been exploring strategic alternatives, "including, but not limited to, opportunities to merge with or sell to similar U.S. or foreign businesses."

Amid a string of losses, declining funds and a major downturn, Spansion recently implemented another round of cost-cutting measures. Rumors are also running rampant that Spansion is mulling a plan to file Chapter 11 protection of the U.S. Bankruptcy Code. The company declined to comment.

At one time, there were other rumors about Spansion, including a report that Japan's Toshiba Corp. would acquire the company.

Spansion delays interest payment, mulls options
Thursday January 15, 10:57 am ET

Spansion delays interest payment due Thursday, considers merger or sale
SUNNYVALE, Calif. (AP) -- Spansion Inc., one of the world's largest makers of flash memory chips used in digital cameras and other gadgets, said it will delay making an interest payment due Thursday on a senior note and is considering a merger or sale.

Its shares shed 1 cent, or 5.6 percent, to 17 cents in Thursday morning trading.

In connection with its exploration of strategic alternatives, Spansion said it was postponing the payment in anticipation of beginning "an organized process of potential balance sheet restructuring opportunities." The 11.25 percent senior note is due 2016.

Spansion said it is considering opportunities to merge with or sell to similar U.S. or foreign businesses. That would create "significantly greater scale" and provide customers with a broader range of more cost-effective memory products, the company said.

In November, Spansion cut its fourth-quarter sales forecast to 20 percent lower than its third-quarter revenue, suggesting revenue of about $505 million. The company previously had said it expected a slight decline in sales.

The Sunnyvale, Calif., company cited a slowdown in demand as customers shut factories for its reduced outlook.

Analysts surveyed by Thomson Reuters expect revenue for the period ended Dec. 28 of $504.2 million.

Spansion also said in November it would cut cost of goods sold by about 25 percent and reduce operating expenses.

Spansion CEO resigns as chip maker seeks buyer
Monday February 2, 5:06 pm ET

Spansion CEO, Bertrand Cambou, resigns as memory chip maker seeks buyer SUNNYVALE, Calif. (AP) -- Spansion Inc.'s president and chief executive, Bertrand Cambou, has resigned as the chip company, struggling with declining revenue, looks for a suitor.

Boaz Eitan, an executive vice president at Spansion and a member of its board, will take over as interim president, the company said.

Eitan founded the company Saifun Semiconductors Ltd. which was acquired by Spansion early last year.

Cambou will provide consulting services to the company.

Spansion, one of the largest makers of flash memory chips for digital cameras and other consumer gadgets, announced last month it was looking for a buyer or merger partner.

The company, a joint venture between Advanced Micro Devices Inc. and Fujitsu Ltd. that was spun into a public company in 2005, has seen demand fall as the recession takes a toll on the chip industry.

In November, Spansion projected fourth-quarter revenue to drop 20 percent from third-quarter levels after an initial forecast of only slightly declining sales.

The company's stock is trading around 6 cents.


  1. Anonymous // 2:39 PM  

    did they have any quants doing their forecasting! they should get part of the bailout funds. nah! let them sink. they have nothing to offer the world except pollution