Netlist, Inc. (NASDAQ:NLST) Improves Bottom Line Performance

Netlist, Inc. (NASDAQ:NLST)

Netlist, Inc. (NASDAQ:NLST) released their financial report for the year and fourth quarter closed December 2016. Revenue for 2016 came in at $19.7 million versus the revenue of $8 million for the same period, a year earlier. Gross profit for the fiscal year closed December 2016 stood at $7.4 million against gross profit of $2.1 million, for the fiscal year closed January 2016.

The stock saw unusually-high trading volume in previous trading session following a better than anticipated earnings announcement. Almost 1.273 million shares changed hands during trading, which is a jump of over 970% from the volume of 118,352 shares in previous session. The stock last closed at $1.00 with gains of over 7%.

The update

Netlist, Inc. (NASDAQ:NLST) reported that net loss for the year closed December 2016 came at ($11.2) million against a net loss of ($20.5) million in the comparable year period. This data comprise stock-based compensation cost of $1.5 million for the year closed December 2016 and $1.8 million for the period closed January 2016.

Revenues for the quarter closed December 2016 came at $5.5 million against revenue of $2.9 million for quarter closed January 2016. As of close of December 2016, cash/cash equivalents and restricted cash came at $12.6 million, working capital was $13 million, total assets were $20 million while stockholders’ deficit stood at ($0.5) million.

C.K. Hong, the CEO of Netlist, Inc. (NASDAQ:NLST), reported that they delivered strong financial performance in FY2016, supported by strong revenue growth. The more expanded revenue stems from a Joint Development Contract with Samsung which included Non-Recurring Engineering Fees to support the advancement of HybriDIMM, the play and plug storage class memory know-how, and innovative access to Samsung’s premium, memory offerings for resale.

During the year they took notable measures toward defending their valuable intellectual asset by initiating legal measures against SK hynix in the federal district court and at the ITC. Netlist is seeking, among other things, a prohibition on the importation of trespassing SK hynix server memory offerings and look forward to the prospect to present the case in the ITC at hearing in May.

Earlier in January, Netlist, Inc. (NASDAQ:NLST) reported the issuance of U.S. Patent pertaining to memory modules efficient of handshaking with a memory checker of a host system. This patent is linked to another U.S. Patent, which is one of 6 patents the company proclaimed last year against SK hynix LRDIMM and RDIMM enterprise memory offerings in the U.S. International Trade Commission and the U.S. District Court.

3/30/2017
Ticker Symbol NLST
Last Price a/o 3:21 PM EST $1.00
Average Volume 118.45K
Market Cap (mlns)  $ 61.11M
Shares Outstanding (mlns) 61.11M
Share Float (mlns) 55.31M
Inside Ownership 12.56%
Short Float 4.62%
Short Interest Ratio 21.56
Quarterly Return -0.99%
YTD Return -1.96%
Year Return -27.01%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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