CORRECTED - CORRECTED-UPDATE 1-Spansion posts wider third-quarter loss

(Corrects to NOR chips from NAND chips in paragraph 1)
(Recasts, adds details)

Oct 16 (Reuters) - Spansion Inc (SPSN.O: Quote, Profile, Research, Stock Buzz) reported a
three-fold increase in third-quarter loss as it was hit by
lower prices for NOR flash-memory chips used in mobile phones
and other electronic devices.

The loss was, however, a cent lower than what analysts had
expected.

Net loss rose to $71.6 million, or 53 cents a share,
compared with $22.1 million, or 17 cents a share, a year ago.
Net sales fell 9.4 percent to $611.1 million.

Analysts on average expected the company to post a loss of
54 cents a share, on revenue of $633.4 million.

The company said it expects net sales of $640 million to
$700 million in the fourth quarter. Analysts were expecting
$663.5 million, according to Reuters Estimates.

Beginning this quarter, the company expects pricing to
become more stable.

"We saw a return to a more stable pricing environment,
reversing the difficult business conditions that we experienced
in the first six months of the year," Chief Executive Bertrand
Cambou said.

Sales at the consumer, set-top box and industrial division
rose 8 percent sequentially to $294 million, the company said.

However, net sales at the wireless unit declined 6 percent
sequentially to $317 million due to a prior inventory build up
in the Japanese handset market, Spansion said in a statement.
(Reporting by Purwa Khandelwal in Bangalore)