Netlist Inc - NLST stock

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Introduction[edit]

Netlist, Inc. (OTC: NLST) is a US-based technology company that engages in the design, manufacture, and sale of memory subsystems for the computing and communications markets. The company offers a wide range of products used by companies interested in superior data storage, analysis, and protection across a myriad of industries. Its portfolio of products includes embedded flash, include storage class memory, non-volatile memory, specialty DIMMs, and NVME SSD. The firm markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. It uses a direct sales force and a network of independent sales representatives to market and sells its products. Netlist, Inc. was founded by Chun Ki Hong, Christopher Lopes, and Jayesh Bhakta in June 2000. The company is headquartered in Irvine, California. The company’s common stock trades on OTMKTS under the ‘NLST’ ticker symbol.[1]

Business and Operations[edit]

Netlist provides high-performance modular memory subsystems to the world’s premier OEMs. It specializes in hybrid memory – the merging of DRAM and NAND flash raw materials to create memory solutions. The company manufactures patented memory technologies that advance superior performance and high density employed from database to enterprise applications. The firm’s services touch diverse industries that hunt for superior memory performance to facilitate critical business decisions in the current data-propelled economy. Netlist holds a significant number of patents in areas of hybrid memory, storage class memory, rank multiplication, load reduction, and more. The company wholly owns and operates ISO- and OSHAS-certified manufacturing and testing facilities in Suzhou, China.[2]

It's NVMe SSDs in various capacities and form factors, and the line of custom and specialty memory products servers and storage appliances serve customers and cloud service providers. The company also licenses its intellectual property, including patents, to interested companies that apply its technology. Netlist's portfolio of technologies and design techniques also includes Distributed Buffer Architecture, which enables the buffering of data signals along the bottom edge of the memory module using multiple data buffer devices distributed between the edge connector and the DRAM. A summary of its commercially available subsystem products and other products sold incorporate Component and Other Product Resales, Storage Class Memory, and HybriDIMM. Netlist resells component products, including solid state drive (SSDs), NAND flash, and DRAM products to storage customers, appliance customers, system builders, and cloud and data center customers.[3]

Company and Industry News[edit]

The international high-performance memory module market is propelled by increasing demand from data center and enterprise storage applications for improved input/output performance, lower latency, and data retention capabilities in the event of unexpected system failure. The continuous surge in mobile devices, social media platforms, cognitive/artificial intelligence systems, and cloud-based software applications creates unprecedented amounts of unstructured data. This necessitates the development of new computing and memory architectures to manage and analyze large volumes of data.[4]

Netlist recently reported its second-quarter financial and operational results for the period ending July 2, 2022. Highlights of the company’s second-quarter results include:

  • Net product sales more than doubled to $55.4 million compared to $24.4 million for the same quarter last year
  • Product gross profit was $4.7 million compared to $2.9 million for last year's quarter, reflecting a 66% approximate increase
  • Net loss was ($5.0) million, or ($0.02) per share, compared to a net income in the second quarter of 2021 of $27.8 million, or $0.12 per diluted share
  • As of July 2, 2022, cash, cash equivalents and restricted cash was $60.6 million, total assets were $99.6 million, working capital was $46.3 million, total debt was $8.2 million, and stockholders' equity was $47.9 million

C.K. Hong, the CEO attributed the firm’s strong product revenue and gross profit growth to its supplier relationships and an expanding customer base. He promised that the company is committed to continuing with the profitable licensing of its unique intellectual property and unique technology.[5]

Leadership[6]

Chun K. Hong, CE, President, and Director

  • One of the founders of Netlist and has served as president, chief executive officer, and director since our inception
  • Before Netlist, he was president and chief operating officer of Infinilink Corp.
  • Held various management positions at LG subsidiaries in South Korea and the U.S from 1983 to 1998
  • Received a B.S. degree in economics from Virginia Commonwealth University and an M.S. degree in technology management from Pepperdine University’s Graduate School of Management


Gail Sasaki, Executive Vice President, and Chief Financial Officer

  • Over 30 years of experience in financial planning and strategic transactions in technology companies
  • Joined Netlist in 2006 and helped take the Company public
  • Before joining Netlist, she served as Senior VP of Finance and Treasurer at eMotion, Inc., CFO of MicroNet Technology, and worked for many years in public accounting with Ernst & Young
  • Holds a BA, Magna Cum Laude, from the University of California Los Angeles and an MBA from the University of Southern California

Jamie Zheng, Executive Advisor Intellectual Property

  • Has been counseling Netlist on its patent matters for almost a decade
  • Has held legal positions at Morgan, Lewis & Bockius, Maschoff Brennan, and Dorsey & Whitney
  • Dr. Zheng received her JD from Santa Clara University and a Ph.D. in physics from Stanford University, after obtaining her MS and BS in physics from Wuhan University in China

Legal Issues[edit]

Netlist filed a patent infringement claim against Samsung in December 2021 in the United States District Court for the Eastern District of Texas. Netlist initiated action against Samsung's material breaches of the parties' Joint Development and License Agreement. The company asserted six of its patents in legal action. A claim construction hearing is in place and set for October 14, 2022. A trial is already scheduled to start on May 1, 2023. Netlist announced on June 14, 2022, that the Court issued an order granting in part Netlist's motion for associated attorneys' fees and expenses.[7]

Netlist reported on August 3 that the court had issued an Order granting in part Netlist's motion for dismissing Samsung's First Amended Complaint and denying Samsung's request to file a Second Amended Complaint. The court further provided a written opinion supporting the Order and dismissed Samsung's Counts IV, V, VI, VII, X, and XI from the case. The dismissal bars Samsung from filing separate action against Netlist’s asserted patents. Samsung is further barred from its alleged obligation to protect Google from the ‘912 Patent in Delaware. The company consequently withdrew its Motion to Sever and Stay the case against Netlist in the Eastern District of Texas.[8]

  1. wsj.com/market-data/quotes/NLST/company-people – Wall Street Journal. Accessed on 10/8/2022.
  2. About Netlist – Netlist Official Company Website
  3. cnbc.com/quotes/NLST?tab=profile – Company Details – CNBC News website. Retrieved on 10/8/2022
  4. TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for Netlist Inc., page 3 – Sec.Report. Accesed on 10/9/2022.
  5. Netlist Reports Second Quarter 2022 Results – Yahoo Finance News. Retrieved on 10/9/2022.
  6. Netlist Company Leadership - Netlist’s official website. Retrieved on 10/9/2022.
  7. Netlist Receives Sanctions Award Against Samsung – Yahoo Finance. Accessed on 10/9/2022.
  8. NETLIST RECEIVES FAVORABLE ORDER AGAINST SAMSUNG IN US DISTRICT COURT – Netlist Press Releases. Retrieved on 10/92022

OTC Symbol: NLST | OTC Tier: OTCQB


The page is authored by: Crescendo