armstp

Spansion: Trouble on the Balance Sheet

You miss the entire story... the company just spend $1.8 bn on a new mftg plant in Japan.... the result has been higher leverage, weaker margins and cashflows... the plant puts the company head and shoulders above the competition from a cost base perspective... the spending has now stopped and the company is improving financial results and credit metrics as it ramps up production on that new plant... just looking at the numbers during the last two years while it was building this plant is not 100% fair... you have to look at the numbers on a more normalized basis....