Spansion Beats Expectations But Takes A Step Back Anyway

Spansion (NYSE: CODE  ) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Spansion missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP loss per share increased.

Margins dropped across the board.

Revenue details
Spansion reported revenue of $189.6 million. The five analysts polled by S&P Capital IQ expected revenue of $195.1 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $218.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The six earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. Non-GAAP EPS of $0.03 for Q1 were 57% lower than the prior-year quarter's $0.07 per share. GAAP EPS were -$0.25 for Q1 against -$0.22 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.2%, 290 basis points worse than the prior-year quarter. Operating margin was -2.9%, 310 basis points worse than the prior-year quarter. Net margin was -7.6%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $224.0 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $943.2 million. The average EPS estimate is $1.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 23 members out of 25 rating the stock outperform, and two members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Spansion a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spansion is outperform, with an average price target of $14.80.

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