Spansion (SPSN) announced today that the stock will be delisted by Nasdaq at today’s close.

The NOR flash memory chip company, which is operating under Chapter 11 of the federal bankruptcy code, said that it is “making progress” on its restructuring plans. The company recently said it is focused on its embedded solutions and IP licensing market, and is seeking alternatives for its wireless business. The company said discussions with creditors “continue to progress.”

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Spansion (SPSN) on Wednesday said it plans to pursue a stand-alone strategy focused on the embedded solutions market and intellectual property licensing. The NOR-flash company, which is operating under Chapter 11 of the Federal bankruptcy code, said it will pursue “strategic alternatives” for its wireless business.

The chip company also said it expect to emerge from Chapter 11 “with a sustainable business model aimed at maximizing recovery for creditors, generating free cash flow and profits,” with a run rate of about $1 billion a year.

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Tessera Technologies (TSRA) shares have fallen nearly in half in late trading after the company announced that the Administrative Law Judge overseeing its patent infringement case before the International Trade Commission asserting violation of its wireless patents by a group of semiconductor companies had found no infringement.

The company said that the Initial Determination of the judge upheld the validity of the patents, but found no infringement. Tessera had asserted infringement against the ATI Technologies unit of Advanced Micro Devices, Fresscale Semiconductor, Motorola, Qualcomm, Spansion and STMicroelectronics.

Tessera said it is “disappointed” in the ruling and will review the decision before determining its next steps.

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It’s been a rough day for highly-leveraged semiconductor stocks.

In a research note this morning, Citigroup’s Glen Yeung provided a review of the credit liabilities of the chip companies Citi has under coverage. He notes that Advance Micro Devices (AMD), Spansion (SPSN), Infineon (IFX) and Qimonda (QI) all have debt coming due in the next 15 months. “In each instance, we point out that an already difficult financial position is compromised by the current credit market,” Yeung noted.

He also noted that AMD, MU and QI also rank among the chip companies with the worst interest coverage ratio.

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For the memory sector, it is a day to forget.

Last night, SanDisk (SNDK) reported an extremely nasty June quarter earnings report–the Street has responded with a host of downgrades. Meanwhile, this morning, Citigroup chip analyst Glen Yeung cut his ratings on Micron (MU), Qimonda (QI) and Spansion (SPSN) to Hold from Buy. The result is that all of the stocks in the beleaguered sector are getting pummeled. Again.

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Spansion (SPSN), maker of NOR Flash memory chips, posted second-quarter revenue of $613 million, ahead of the Street consensus of $580.73 million. The company lost 63 cents per share in the quarter, better than the loss of 75 cents that analysts had expected. In a statement, CEO Bertrand Cambou said that results were above the company’s expectations, “mainly driven by strong performance in the consumer segment.”

For Q3, the company sees sales “up slightly” from Q2; the Street had been looking for $623.4 million. Gross margin is expected to increase 1-to-2 percentage points sequentially.

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