Sunnyvale (CA) - Spansion today announced that it intends to raise $506.4 million through its initial public offering (IPO). The joint venture, founded by AMD and Fujitsu, will need the funds to expand its Flash production capabilities to be able to compete with Intel, Samsung, Toshiba and Sharp.
AMD first announced plans to take Spansion public in April of this year, in the midst of climbing losses of its memory products group. In the first quarter of this year, the memory unit faced rapidly falling revenues and losses that topped 110 million in Q1 2005. Focused on a currently declining NOR Flash market, AMD's losses from its memory business more recently fell to $50 million in the third quarter. However, revenues are still declining on a year-over-year basis down to $516 million from $538 million in Q3. In the first nine months of 2005, AMD's memory unit lost $248 million.
____________
Read More / Source:
TG Daily
Dec 16, 2005, 08:28 PM
