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Spansion In Talks To Sell Assets

Flash memory chip maker, which has been operating in bankruptcy, said it is in talks with multiple companies about a possible sale of some or all of its assets.

SUNNYVALE, Calif. (AP) -- Spansion Inc., a flash memory chip maker operating in bankruptcy, said Monday it is in talks with multiple companies about a possible sale of some or all of its assets.

The company filed for Chapter 11 protection earlier this month following a steep decline in demand for consumer electronics. Spansion's chips help run gadgets like cell phones, digital cameras and LCD televisions.

The company on Monday reported fourth-quarter sales of $468 million, down 28 percent from the year-earlier quarter. It expects revenue of $400 million for the quarter ending in March, which would represent a year-over-year decline of 30 percent.

"We plan to continue to take the necessary actions to strengthen our cash position, to help enable Spansion to emerge from the Chapter 11 process as a stronger and more focused company," Chief Executive John Kispert said in a statement.