Spansion Inc. (NYSE:CODE) Reports Strong 4Q Results
The $882 million market capped semiconductor and memory chip maker Spansion Inc. (NYSE:CODE) released results from its 4Q and full year operations on 5th February. It also provided a strong 1Q14 guidance which sent its stock price shooting up by 4.1 percent during trading on 5th February.
John H. Kispert Chief Executive Officer, President and Director of Spansion Inc. (NYSE:CODE) shared his perspective on the 4Q results in his opening comments on the conference call. He has been quoted to have said that, “We achieved non-GAAP revenue of $314 million, that’s up 14% sequentially, and up 40% from the December ending quarter a year ago. Also in the fourth quarter, the company had non-GAAP gross margin of 34%, non-GAAP operating income of $26 million, non-GAAP diluted EPS of $0.20. And cash, cash equivalents and short-term investments was $311 million. Our fourth quarter results clearly demonstrated the earnings power of our combined company.”
Acquisition Costs A Drag
The Top executive explained that due to the acquisition related costs spilling into the reporting quarter books and the discrepancies caused by the purchase accounting methodologies, the GAAP gross margins had to be lowered and has estimated that these reasons would continue to drag the earnings down by a few percentage points over the next two quarters.
All 3 Divisions On The Growth Path
The highlight of the earnings call was the fact that all the three business lines of “Microcontrollers, Analog and Flash” have shown growth in their markets and have pushed the profitability of the company upwards by taking a substantive share of the global “automotive, industrial, consumer and communications markets” demand for memory chips.
1Q14 Looks Rosy
On the back of the sustained build up in its business momentum, the firm estimated a EPS for the first quarter to range between 14 to 22 cents and expects over all revenue from 1Q to come in between $295 and $320 million.