Spansion sees strong embedded, consumer growth for flash

Spansion sees strong embedded, consumer growth for flash

SAN FRANCISCO -- Embedded and consumer markets and a broadeningporfolio of flash memory devices will continue to drive increasedbusiness for memory maker Spansion Inc. in the coming months, butglobal economic uncertainty marked by political change is dampeningindustry growth, Spansion CEO John Kispert said Thursday (Oct. 25).

"Our adoption is up, and we're getting into new markets with broaderproduct lines," Kispert said in an interview, as he announcedSpansion revenues of $239.7 million and profits of $5 million,numbers within a range of financial guidance the company gave duringits second quarter. The quarter continues a strong showing from acompany that only last year came out of a difficult bankruptcy andrestructuring period.

Spansion revenues in consumer markets (home gateways and digitalcameras, for example) were 39 percent, up a full 10 percentage pointsthe same quarter last year and up 2 percentage sequentially. Thecompany's other strong suits, gaming and communications, saw thepercentage of overall revenues rise to 32 percent from 23 percent inthe third quarter of 2011.

Overall, Spansion reported 520 design wins in the quarter, up fromthe 458 in the secondquarter.

Industrial challenge

The company's big challenge came in its industrial andtransportation sector, which dropped to 23 percent of total revenuesfrom 29 percent in the same period a year ago. Automotive was flat,and industrial sales were hampered by government spending.

"We're having record design wins [in industrial], but revenue isweaker and that's a sign of the times," said Kispert (shown, right). "Most of ourindustrial business is driven by government spending, and that'sdried up."



Next: NAND design revenue rolls
TAG:Spansion NOR NAND flash embedded automotive industrial consumer gaming non volatile memory semiconductors