Netlist Reports First Quarter Results

IRVINE, Calif., May 11, 2011 /PRNewswire/ -- Netlist, Inc. (NASDAQ: NLST) today reported financial results for the first quarter ended April 2, 2011.  

Revenues for the first quarter ended April 2, 2011, were $12.0 million, up 52 percent from revenues of $7.9 million for the first quarter ended April 3, 2010, and up 18.9 percent from revenues of $10.1 million for the previous quarter.  Gross profit for the first quarter ended April 2, 2011, was $3.8 million, or 32 percent of revenues, up 109 percent from a gross profit of $1.8 million, or 23 percent of revenues, for the first quarter ended April 3, 2010.  Gross profit dollars were also up from the previous quarter by 16 percent from a gross profit of $3.3 million, or 33 percent of revenues.

Net loss for the first quarter ended April 2, 2011, was $2.8 million, or $0.11 loss per share, compared to a net loss in the prior year period of $3.0 million, or $0.14 loss per share.  These results include stock-based compensation expense of $0.4 million for both periods.  

As of April 2, 2011, cash, cash equivalents, and long-term investments in marketable securities were $12.3 million, total assets were $32.8 million, working capital was $15.5 million, total debt was $1.6 million, and stockholders' equity was $19.4 million.

Chief Executive Officer C.K. Hong said, "We had another strong quarter of revenue and gross profit dollar growth both year-over-year and sequentially from the fourth quarter - a solid start for the year.  We are executing effectively against our key business strategies, driving solid ramps in both NVvault™ and Flash businesses, and continuing to seed HyperCloud™ in numerous qualification efforts."

Conference Call Information

As previously announced, Netlist is conducting a conference call today to be broadcast live over the Internet at 5:00 pm Eastern Time to discuss and review the financial results for the first quarter ended April 2, 2011.  The dial-in number for the call is 1-877-941-8416.  The live webcast and archived replay of the call can be accessed in the Investors section of Netlist's website at www.netlist.com.

About Netlist:

Netlist, Inc. designs and manufactures high-performance, logic-based memory subsystems for datacenter server and high-performance computing and communications markets. Netlist's flagship products include HyperCloud™, a memory module that breaks traditional memory barriers, and the NVvault™ family of products, including NVvault™ battery-free, a flash memory-based subsystem that enables data retention weeks following a disaster. The memory technologies are developed for applications in which high-speed, high-capacity memory, enhanced functionality, small form factor, and heat dissipation are key requirements. These applications include tower-servers, rack-mounted servers, blade servers, high-performance computing clusters, engineering workstations, and telecommunication equipment.  Founded in 2000, Netlist is headquartered in Irvine, California with manufacturing facilities in Suzhou, People's Republic of China.  For more information, visit the company's website at www.netlist.com.

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, continuing development, qualification and volume production of EXPRESSvault™,  NVvault™ and HyperCloud™; the rapidly-changing nature of technology; risks associated with intellectual property, including the costs and unpredictability of litigation over infringement of our intellectual property and the possibility of the Company's patents being re-examined 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; 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, dated March 3, 2011, 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.

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SOURCE Netlist, Inc.