Spansion shares plunge on loss outlook

Spansion shares plunge on loss outlook

Stock Market Predictions

(Global Markets) - Spansion Inc (CODE.N) shares plunged more than 34 percent on Friday, a day after the flash memory provider forecast a fourth-quarter loss and said it would close its Kuala Lumpur plant as part of cost-cutting plans.

Spansion shares fell 34 percent to $9.18 -- their lowest since the company emerged out of bankruptcy in May last year -- making the stock the biggest percentage loser in morning trade on the New York Stock Exchange.

Spansion, once the global leader in a type of flash memory called NOR, which is used for storing code that runs devices, said it expects to save about $30 million annually from the facility closure.

For the third quarter, the company posted an adjusted loss of 12 cents per share, against analyst estimates of earnings of 18 cents. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Gopakumar Warrier)