Spansion Seeks Expansion

Sunnyvale, California-based Spansion (SPSN) is a semiconductor device company exclusively dedicated to designing, developing, manufacturing, marketing and selling Flash memory solutions. The firm's Flash memory is integrated into a broad range of electronic products, including mobile phones, consumer electronics, networking and telecommunications equipment, and computer peripherals.

Flash memory products are generally based on either NOR or NAND architecture. To date, Spansion's Flash memory products have been based on NOR architecture, which are typically produced at a higher cost-per-bit than NAND-based products.

The Saifun acquisition opens the company up to the technology licensing business, which historically has had very high margins. The imbalance between NOR and NAND will continue and investors should watch the traction of the few NAND products the firm does have. We feel the firm will trade at current to slightly higher valuation metrics until the 2008-2009 demand outlook becomes a little more clear. We are setting a price target of $3.00.

Read the full analyst report on SPSN.

Read the full analyst report on SPSN