Spansion ( SPSN) dropped 7% Friday after warning of an unexpected fourth-quarter loss due to what it called a delay in customer demand.

The Sunnyvale, Calif., maker of flash memory chips expects to post a quarterly loss on revenue of about $685 million. Analysts surveyed by Thomson Financial were looking for a nickel-a-share profit on sales of $723 million.

"The change in revenue guidance is due in large part to a late-December delay in customer demand for certain high-density custom Flash memory devices," Spansion said. "The company expects these devices to be sold in the first quarter of 2007."

Shares were falling $1 to $13.52.