Click here to close now.


News Feed Item

Netlist Reports First Quarter 2014 Results

IRVINE, CA -- (Marketwired) -- 05/13/14 -- Netlist, Inc. (NASDAQ: NLST), a leading provider of high performance memory solutions for the cloud computing and storage markets, today reported financial results for the first quarter ended March 29, 2014.

Revenues for the first quarter ended March 29, 2014, were $7.0 million, compared to revenues of $6.0 million for the first quarter ended March 30, 2013. Gross profit for the first quarter ended March 29, 2014, was $2.0 million, or 28.4 percent of revenues, compared to a gross profit of $0.6 million, or 9.5 percent of revenues, for the first quarter ended March 30, 2013.

The adjusted EBITDA loss was ($0.8) million for the first quarter ended March 29, 2014, compared to an adjusted EBITDA loss of ($2.2) million for the prior year period.

Net loss for the first quarter ended March 29, 2014, was ($2.0) million, or ($0.05) loss per share, compared to a net loss in the prior year period of ($3.2) million, or ($0.10) loss per share. These results include stock-based compensation expense of $0.5 million for the first quarter ended March 29, 2014, compared to $0.4 million for the prior year period.

As of March 29, 2014, cash and cash equivalents and restricted cash were $19.1 million, total assets were $27.7 million, working capital was $20.5 million, total debt, net of debt discounts, was $5.4 million, and stockholders' equity was $16.6 million.

"During the first quarter we made further progress in broadening our target market opportunity and expanding our portfolio of flagship products, specifically our NVvault™ and EVvault™ for the growing enterprise storage market," said C.K. Hong, CEO of Netlist. "We also secured highly favorable rulings at the United States Patent and Trademark Office pertaining to our innovative patented technologies covering LRDIMM and hybrid memory. We are pleased with our financial results as well. We delivered year over year growth in revenues and gross profits and we significantly improved our cash position by effectively executing our public offering in February 2014."

Conference Call Information
As previously announced, Netlist is conducting a conference call today at 5:00 pm Eastern Time to discuss and to review the financial results for the first quarter ended March 29, 2014. The dial-in number for the call is 1-412-858-4600. The live webcast and archived replay of the call can be accessed in the Investors section of Netlist's website at

Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including EBITDA and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), may be considered non-GAAP financial measures. Netlist believes this information is useful to investors because it provides a basis for measuring Netlist's available capital resources, the operating performance of Netlist's business and Netlist's cash flow, excluding net interest expense, provisions for income taxes, depreciation, amortization, stock-based compensation and net other expense that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles ("GAAP"). Netlist's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating Netlist's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by Netlist may not be comparable to similarly titled amounts reported by other companies.

Adjusted EBITDA loss is a non-GAAP measure in which the net interest expense, provision for income taxes, depreciation, amortization, stock-based compensation and net other expense are added back to the GAAP basis loss. The non-GAAP measures are described above and are reconciled to the corresponding GAAP measure in the condensed consolidated financial statements portion of this release under the heading "Unaudited Schedule Reconciling GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA."

About Netlist:
Netlist, Inc. designs and manufactures high-performance, logic-based memory subsystems for server and storage applications for cloud computing. Netlist's flagship products include HyperCloud®, a patented memory technology that breaks traditional performance barriers, NVvault™ and EXPRESSvault™ family of products that significantly accelerate system performance and provide mission critical fault tolerance, and a broad portfolio of industrial Flash and specialty memory subsystems including VLP (very low profile) DIMMs and Planar-X RDIMMs. Netlist has steadily invested in and grown its IP portfolio, which now includes 43 issued patents and more than 30 U.S. and foreign pending patent applications in the areas of high performance memory and hybrid memory technologies.

Netlist develops technology solutions for customer applications in which high-speed, high-capacity, small form factor and efficient heat dissipation are key requirements for system memory. These customers include OEMs that design and build tower, rack-mounted, and blade servers, high-performance computing clusters, engineering workstations and telecommunications equipment. Founded in 2000, Netlist is headquartered in Irvine, CA with manufacturing facilities in Suzhou, People's Republic of China. Learn more at

Safe Harbor Statement:
This news release contains forward-looking statements regarding future events and the future performance of Netlist. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected or projected. These risks and uncertainties include, but are not limited to, risks associated with the launch and commercial success of our products, programs and technologies; the success of product partnerships; continuing development, qualification and volume production of EXPRESSvault™, NVvault™, HyperCloud® and VLP Planar-X RDIMM; the timing and magnitude of the anticipated decrease in sales to our key customer; our ability to leverage our NVvault™ technology in a more diverse customer base; the rapidly-changing nature of technology; risks associated with intellectual property, including patent infringement litigation against us as well as the costs and unpredictability of litigation over infringement of our intellectual property and the possibility of our patents being reexamined by the United States Patent and Trademark office; volatility in the pricing of DRAM ICs and NAND; changes in and uncertainty of customer acceptance of, and demand for, our existing products and products under development, including uncertainty of and/or delays in product orders and product qualifications; delays in the Company's and its customers' product releases and development; introductions of new products by competitors; changes in end-user demand for technology solutions; the Company's ability to attract and retain skilled personnel; the Company's reliance on suppliers of critical components and vendors in the supply chain; fluctuations in the market price of critical components; evolving industry standards; and the political and regulatory environment in the People's Republic of China. Other risks and uncertainties are described in the Company's annual report on Form 10-K filed on March 18, 2014, and subsequent filings with the U.S. Securities and Exchange Commission made by the Company from time to time. Except as required by law, Netlist undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(Tables Follow)

                       Netlist, Inc. and Subsidiaries
                   Condensed Consolidated Balance Sheets
                      (in thousands, except par value)

                                                 unaudited       audited
                                                 March 29,     December 28,
                                                    2014           2013
                                               -------------  -------------

Current assets:
  Cash and cash equivalents                    $      17,974  $       6,701
  Restricted cash                                      1,100          1,100
  Accounts receivable, net                             4,219          4,866
  Inventories                                          2,428          2,620
  Prepaid expenses and other current assets              811            823
                                               -------------  -------------
    Total current assets                              26,532         16,110

  Property and equipment, net                            891          1,143
  Other assets                                           323            422
                                               -------------  -------------
    Total assets                               $      27,746  $      17,675
                                               =============  =============

Current liabilities:
  Accounts payable                             $       3,881  $       3,795
  Accrued payroll and related liabilities                771            635
  Accrued expenses and other current
   liabilities                                           543            533
  Accrued engineering charges                            500            500
  Current portion of long-term debt and debt
   discount                                              298              -
                                               -------------  -------------
    Total current liabilities                          5,993          5,463
Long-term debt, net of current portion and
 debt discount                                         5,056          5,099
Other liabilities                                        104            100
                                               -------------  -------------
    Total liabilities                                 11,153         10,662
                                               -------------  -------------

Commitments and contingencies

Stockholders' equity:
  Common stock, $0.001 par value - 90,000
   shares authorized; 41,480 (2014) and 31,776
   (2013) shares issued and outstanding                   41             31
  Additional paid-in capital                         116,057        104,469
  Accumulated deficit                                (99,505)       (97,487)
                                               -------------  -------------
    Total stockholders' equity                        16,593          7,013
                                               -------------  -------------
    Total liabilities and stockholders' equity $      27,746  $      17,675
                                               =============  =============

                       Netlist, Inc. and Subsidiaries
         Unaudited Condensed Consolidated Statements of Operations
                  (in thousands, except per share amounts)

                                                     Three Months Ended
                                                   March 29,     March 30,
                                                     2014          2013
                                                 ------------  ------------

Net sales                                        $      7,001  $      5,963
Cost of sales(1)                                        5,016         5,397
                                                 ------------  ------------
Gross profit                                            1,985           566
                                                 ------------  ------------
Operating expenses:
  Research and development(1)                           1,975         1,842
  Selling, general and administrative(1)                1,622         1,756
                                                 ------------  ------------
    Total operating expenses                            3,597         3,598
                                                 ------------  ------------
Operating loss                                         (1,612)       (3,032)
                                                 ------------  ------------
Other expense, net:
  Interest expense, net                                  (395)         (130)
  Other expense, net                                      (11)           (6)
                                                 ------------  ------------
    Total other expense, net                             (406)         (136)
                                                 ------------  ------------
Loss before provision for income taxes                 (2,018)       (3,168)
Provision for income taxes                                  -             2
                                                 ------------  ------------
Net loss                                         $     (2,018) $     (3,170)
                                                 ============  ============
Net loss per common share:
  Basic and diluted                              $      (0.05) $      (0.10)

Weighted-average common shares outstanding:
  Basic and diluted                                    36,881        30,205

(1) Amounts include stock-based compensation
 expense as follows:

  Cost of sales                                  $         15  $         12
  Research and development                                188           160
  Selling, general and administrative                     328           262

                       Netlist, Inc. and Subsidiaries
    Unaudited Schedule Reconciling GAAP Net Loss to Non-GAAP EBITDA and
                               Adjusted EBITDA
                               (in thousands)

                                                    Three Months Ended
                                                 March 29,      March 30,
                                                    2014           2013
                                               -------------  -------------

GAAP net loss                                  $      (2,018) $      (3,170)

Interest expense, net                                    395            130
Provision for income taxes                                 -              2
Depreciation and amortization                            282            418
                                               -------------  -------------
EBITDA                                                (1,341)        (2,620)

Stock-based compensation                                 531            434
Other expense, net                                        11              6

                                               -------------  -------------
Adjusted EBITDA                                $        (799) $      (2,180)
                                               =============  =============

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Luxoft Holding, Inc., a leading provider of software development services and innovative IT solutions, has been named “Bronze Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Luxoft’s software development services consist of core and mission-critical custom software development and support, product engineering and testing, and technology consulting.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
Recently announced Azure Data Lake addresses the big data 3V challenges; volume, velocity and variety. It is one more storage feature in addition to blobs and SQL Azure database. Azure Data Lake (should have been Azure Data Ocean IMHO) is really omnipotent. Just look at the key capabilities of Azure Data Lake:
Data loss happens, even in the cloud. In fact, if your company has adopted a cloud application in the past three years, data loss has probably happened, whether you know it or not. In his session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how common and costly cloud application data loss is and what measures you can take to protect your organization from data loss.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
In his session at @ThingsExpo, Tony Shan, Chief Architect at CTS, will explore the synergy of Big Data and IoT. First he will take a closer look at the Internet of Things and Big Data individually, in terms of what, which, why, where, when, who, how and how much. Then he will explore the relationship between IoT and Big Data. Specifically, he will drill down to how the 4Vs aspects intersect with IoT: Volume, Variety, Velocity and Value. In turn, Tony will analyze how the key components of IoT ...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
As-a-service models offer huge opportunities, but also complicate security. It may seem that the easiest way to migrate to a new architectural model is to let others, experts in their field, do the work. This has given rise to many as-a-service models throughout the industry and across the entire technology stack, from software to infrastructure. While this has unlocked huge opportunities to accelerate the deployment of new capabilities or increase economic efficiencies within an organization, i...
“All our customers are looking at the cloud ecosystem as an important part of their overall product strategy. Some see it evolve as a multi-cloud / hybrid cloud strategy, while others are embracing all forms of cloud offerings like PaaS, IaaS and SaaS in their solutions,” noted Suhas Joshi, Vice President – Technology, at Harbinger Group, in this exclusive Q&A with Cloud Expo Conference Chair Roger Strukhoff.
Scott Guthrie's keynote presentation "Journey to the intelligent cloud" is a must view video. This is from AzureCon 2015, September 29, 2015 I have reproduced some screen shots in case you are unable to view this long video for one reason or another. One of the highlights is 3 datacenters coming on line in India.
“The Internet of Things transforms the way organizations leverage machine data and gain insights from it,” noted Splunk’s CTO Snehal Antani, as Splunk announced accelerated momentum in Industrial Data and the IoT. The trend is driven by Splunk’s continued investment in its products and partner ecosystem as well as the creativity of customers and the flexibility to deploy Splunk IoT solutions as software, cloud services or in a hybrid environment. Customers are using Splunk® solutions to collect ...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the...
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”