1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (5529) 

George Soros Buys 5.1% of Memory Company Spansion Inc.

May 06, 2014 | About:

George Soros (Trades, Portfolio) has purchased 5.11% of a new company, Spansion Inc. (NYSE:CODE), according to GuruFocus Real Time Picks. The April 25 transaction consisted of 3,066,666 shares, which had a closing price of $17.76 each that day. Spanion’s share price has increased 4.4% since 2010, to almost a two-year high of around $17.56 on Tuesday.

1399404299353.png

Spansion is a Flash memory embedded systems solutions company, whose components run in routers and electronics. The company went bankrupt in 2009 due to declining chip prices and oversupply in the chip market fueled by lack of demand. It reorganized in May 2010, with a new model to foster growth in key segments, namely automotive, consumer and gaming, communications and industrial.

A day prior to Soros’ investment, Spansion introduced six new automotive devices to its flash memory portfolio, developed to meet the higher temperature ranges and quality requirements of the auto industry. Such components are in increasing demand as the industry expands its electronic application offerings, such as advanced driver assistance systems, instrument clusters, infotainment and data logging systems.

In the fourth quarter, Spansion reported a 40% year-over-year net sales increase to $313.7 million, boosted by the addition of its two new businesses, Microcontroller and Analog/Mixed Signal, acquired from Fujitsu. Is net loss was $23.7 million, compared to net earnings of $6.9 million in fourth quarter 2012. The company also reported a gross margin of 29.7%, down slightly from 32.1% in the year-ago quarter.

Spansion revenue and net income history:

1399406362027.png

Spansion ended the year with $286.07 million in cash on its balance sheet, increased from $262.2 million a year prior.

For first quarter 2014, the company is expecting net sales in the range of $295 million to $320 million, and a GAAP net loss per share of $0.46 to $0.42.

Spanion trades with a P/B ratio of 1.9 and P/S ratio of 1.07, which is close to a two-year high of 1.12.

For more George Soros (Trades, Portfolio) stocks, visit his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here!


Rating: 5.0/5 (4 votes)

Voters:

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


vikas_salgia01 - TARGETS
rael222230061960/3
ymoscoMedian
maggers78Best Value Screen
Marty FletcherAg Chemicals
rael222230061960/1
rmaluskiWatchlist (NC)
rael222230061960
rmaluskiS&P 500 NOPAIT
amt2100Apr2016-value with buyback

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK