UK markets closed
  • NIKKEI 225

    27,819.33
    -180.63 (-0.65%)
     
  • HANG SENG

    20,082.43
    +471.59 (+2.40%)
     
  • CRUDE OIL

    94.08
    +2.15 (+2.34%)
     
  • GOLD FUTURES

    1,803.00
    -10.70 (-0.59%)
     
  • DOW

    33,323.65
    +14.14 (+0.04%)
     
  • BTC-GBP

    19,812.41
    +359.34 (+1.85%)
     
  • CMC Crypto 200

    571.75
    -2.99 (-0.52%)
     
  • ^IXIC

    12,775.71
    -79.10 (-0.62%)
     
  • ^FTAS

    4,131.26
    -19.42 (-0.47%)
     

Netlist Reports Second Quarter 2022 Results

·7-min read


Irvine, 08/02/2022 / 08:01, EST/EDT - EQS Newswire - Netlist, Inc.


IRVINE, CA / ACCESSWIRE / August 2, 2022 / Netlist, Inc. (OTCQB:NLST) today reported financial results for the second quarter ended July 2, 2022.

Second Quarter 2022 Highlights:

  • Net product sales more than doubled to $55.4 million compared to $24.4 million for last year's quarter.

  • Product gross profit dollars increased by 66%. Product gross profit was $4.7 million compared to $2.9 million for last year's quarter.

Netlist, Inc., Tuesday, August 2, 2022, Press release picture

"Netlist delivered another quarter of strong product revenue and gross profit growth," said Chief Executive Officer, C.K. Hong. "We continue to benefit from strategic supply relationships and an expanding customer base. Intellectual property enforcement actions are making steady progress, and we remain committed to the fair licensing of our unique technologies."

Net product sales for the second quarter ended July 2, 2022 were $55.4 million, compared to net product sales of $24.4 million for the second quarter ended July 3, 2021 and $50.2 million in the most recent quarter. Product gross profit for the second quarter ended July 2, 2022 was $4.7 million, compared to a product gross profit of $2.9 million for the second quarter ended July 3, 2021 and $3.4 million for the most recent quarter.

Total net sales for the second quarter ended July 2, 2022 was $55.4 million, compared to total net sales of $64.4 million for the second quarter ended July 3, 2021. Net loss for the second quarter ended July 2, 2022 was ($5.0) million, or ($0.02) per share, compared to a net income in the prior year period of $27.8 million, or $0.12 per diluted share. These results include stock-based compensation expense of $0.8 million and $0.4 million for the quarters ended July 2, 2022 and July 3, 2021, respectively.

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.

Conference Call Information

C.K. Hong, Chief Executive Officer, and Gail Sasaki, Chief Financial Officer, will host an investor conference call today, August 2, 2022 at 12:00 p.m. Eastern Time to review Netlist's results for the second quarter ended July 2, 2022. The live webcast and archived replay of the call can be accessed for 90 days in the Investors section of Netlist's website at www.netlist.com.

About Netlist

Netlist provides high-performance solid state drives and modular memory solutions to enterprise customers in diverse industries. The Company's NVMe™ SSDs in various capacities and form factors and the line of custom and specialty memory products bring industry-leading performance to server and storage appliance customers and cloud service providers. Netlist licenses its portfolio of intellectual property including patents, in server memory, hybrid memory and storage class memory, to companies that implement Netlist's technology. To learn more, visit www.netlist.com.

Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance. Forward-looking statements contained in this news release include statements about Netlist's ability to execute on its strategic initiatives. All forward-looking statements reflect management's present expectations regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include, among others: risks related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist's product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist's industry; and general economic, political and market conditions, including quarantines, factory slowdowns or shutdowns, and travel restrictions resulting from the COVID-19 pandemic. The military conflict between Russia and Ukraine may increase the likelihood of supply interruptions. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These and other risks and uncertainties are described in Netlist's annual report on Form 10-K for its most recently completed fiscal year filed on March 1, 2022, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed quarterly and current reports. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

(Tables Follow)

For more information, please contact:

The Plunkett Group
Mike Smargiassi
NLST@theplunkettgroup.com
(212) 739-6729

Netlist, Inc.
Gail M. Sasaki
Chief Financial Officer
(949) 435-0025

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


(unaudited)



July 2,

January 1,


2022

2022

ASSETS



Current assets:



Cash and cash equivalents

$

40,465

$

47,679

Restricted cash

20,100

10,800

Accounts receivable, net

12,328

12,727

Inventories

21,857

15,670

Prepaid expenses and other current assets

1,018

1,126

Total current assets

95,768

88,002


Property and equipment, net

1,180

989

Operating lease right-of-use assets

2,369

1,891

Other assets

319

294

Total assets

$

99,636

$

91,176


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

38,309

$

25,887

Revolving line of credit

8,019

7,000

Accrued payroll and related liabilities

1,430

1,308

Accrued expenses and other current liabilities

1,485

632

Long-term debt due within one year

189

562

Total current liabilities

49,432

35,389

Operating lease liabilities

1,932

1,593

Other liabilities

356

152

Total liabilities

51,720

37,134


Commitments and contingencies


Stockholders' equity:

Preferred stock

-

-

Common stock

232

231

Additional paid-in capital

248,563

243,866

Accumulated deficit

(200,879

)

(190,055

)

Total stockholders' equity

47,916

54,042

Total liabilities and stockholders' equity

$

99,636

$

91,176

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













Three Months Ended

Six Months Ended


July 2,

July 3,

July 2,

July 3,


2022

2021

2022

2021






Net product sales

$

55,358

$

24,363

$

105,558

$

39,260

License fee

-

40,000

-

40,000

Net sales

55,358

64,363

105,558

79,260

Cost of sales(1)

50,610

21,498

97,447

34,894

Gross profit

4,748

42,865

8,111

44,366

Operating expenses:

Research and development(1)

2,672

2,060

5,129

3,184

Intellectual property legal fees

3,313

3,837

6,139

6,124

Selling, general and administrative(1)

3,724

3,092

7,662

5,049

Total operating expenses

9,709

8,989

18,930

14,357

Operating (loss) income

(4,961

)

33,876

(10,819

)

30,009

Other (expense) income, net:

Interest income (expense), net

15

(145

)

4

(292

)

Other (expense) income, net

(6

)

645

(8

)

643

Total other (expense) income, net

9

500

(4

)

351

(Loss) income before provision for income taxes

(4,952

)

34,376

(10,823

)

30,360

Provision for income taxes

-

6,600

1

6,601

Net (loss) income

$

(4,952

)

$

27,776

$

(10,824

)

$

23,759


Earnings (loss) per common share:

Basic

$

(0.02

)

$

0.13

$

(0.05

)

$

0.11

Diluted

$

(0.02

)

$

0.12

$

(0.05

)

$

0.10

Weighted-average common shares outstanding:

Basic

231,298

215,706

230,922

210,693

Diluted

231,298

235,176

230,922

229,305



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


Cost of sales

$

16

$

4

$

19

$

7

Research and development

215

168

391

278

Selling, general and administrative

559

207

1,062

432

Total stock-based compensation

$

790

$

379

$

1,472

$

717

SOURCE: Netlist, Inc.


Attachment

File: fs_for_earnings_release__q2_2022_07.25.2022


08/02/2022 EQS Newswire / EQS Group AG



show this
show this
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting