Spansion Inc. Announces Updated Financial Outlook for Q2 2013
Jul 12, 2013
SUNNYVALE, Calif., July 12, 2013 /PRNewswire/ --Spansion Inc. (NYSE: CODE), a leading innovator of Flash memory solutions, today announced that based upon its preliminary financial results, revenue for the second quarter 2013 will be below the Company's previous estimate, due primarily to market softness, particularly in Japan.
Spansion currently expects second quarter revenue to range between $193 million and $197 million. The Company's previous estimate for the second quarter was for revenue to range between $200 million and $220 million.
The Company expects GAAP diluted net income per share for the second quarter of approximately ($0.05) to ($0.07) and non-GAAP earnings per share of approximately $0.25 to $0.27. Included in these earnings per share expectations are two one-time items related to foreign exchange and taxes that add approximately $0.10 to earnings per share. Spansion's previous estimate was for non-GAAP diluted earnings per share in the range of $0.16 to $0.23.
Spansion expects to release financial results for the second quarter 2013 and host a conference call for analysts and investors on or around July 31, 2013. At that time, the Company will review its second quarter results and anticipates providing an outlook for the third quarter of 2013. Details on the conference call will be announced prior to the date.
About Spansion Spansion (NYSE: CODE) is a global leader in Flash memory-based embedded systems solutions. Spansion is at the heart of electronics systems, connecting, controlling, storing, and powering everything from automotive electronics and industrial systems to the highly interactive and immersive consumer devices that are enriching people's daily lives. For more information, visit http://www.spansion.com.
Spansion®, the Spansion logo, MirrorBit®, MirrorBit® Eclipse™ and combinations thereof, are trademarks and registered trademarks of Spansion LLC in the United States and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.
This presentation contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements. The risks and uncertainties include the possibility that our current expectations for our financial results may be revised after further review and verification of our revenues and earnings per share and applicable accounting principles.
Use of Non-GAAP Financial Information
To provide investors and others with additional information regarding Spansion's operating results, we have disclosed in this press release certain non-GAAP financial measures, including earnings per share. These non-GAAP financial measures are a supplement to, and not a substitute for or superior to, the company's results presented in accordance with U.S. GAAP.
The non-GAAP financial measures are provided to enhance the user's overall understanding of the company's operating performance. Specifically, the company believes the non-GAAP information provides useful measures to investors regarding the company's financial performance by excluding certain expenses that the company believes are not indicative of its core operating results such as the amortization of intangibles, stock compensation expense, and acquisition related expenses.
Management believes these non-GAAP financial measures reflect Spansion's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in Spansion's business, as they exclude expenses that are not reflective of ongoing operating results and provide useful information to investors and others in understanding and evaluating Spansion's operating results and future prospects in the same manner as management. Adjustments due to amortization, acquisition related expense and stock compensation expense attempt to exclude items that are either non-cash or non-recurring in nature.