Arduino Uno and ATMEL memory chip using SPI

CrossRoads:
Don't you to print eeprom_output_data after the read, and not testdata?

eeprom_output_data = read_eeprom(address);

Serial.print("Data: ");Serial.print(testdata,DEC);Serial.print(" from Address: "); Serial.println(address,DEC);

Yes, I apologize; I accidentally posted an earlier version of my code that gave me an error (I'll change the original post). However, the output I posted is what I get even when I print eeprom_output_data.