Netlist Reports Second Quarter 2012 Results
Revenues for the three months ended
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) after adding back net interest expense, provision for income taxes, depreciation, amortization, stock-based compensation and net non-operating expense (income) was a loss of
Net loss for the three months ended
"Our second quarter results reflect the current transitional period of our business as we focus on introducing our new product lines while older product lines wind down," said
Revenues for the six months ended
Net loss for the six months ended
As of
Conference Call Information
As previously announced,
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including EBITDA and adjusted EBITDA, may be considered non-GAAP financial measures.
About
Safe Harbor Statement:
This news release contains forward-looking statements regarding future events and the future performance of
Netlist, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(unaudited) (audited)
June 30, December 31,
2012 2011
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 11,299 $ 10,535
Accounts receivable, net 8,094 11,399
Inventories 9,643 6,057
Prepaid expenses and other current assets 1,432 806
------------- -------------
Total current assets 30,468 28,797
Property and equipment, net 3,306 2,771
Long-term investments in marketable
securities 445 444
Other assets 130 161
------------- -------------
Total assets $ 34,349 $ 32,173
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,317 $ 6,155
Accrued payroll and related liabilities 1,305 1,813
Accrued expenses and other current
liabilities 1,285 460
Accrued engineering charges 490 450
Current portion of long-term debt 908 2,144
------------- -------------
Total current liabilities 11,305 11,022
Long-term debt, net of current portion 2,825 1,118
Other liabilities 88 94
------------- -------------
Total liabilities 14,218 12,234
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Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value - 90,000 28 26
shares authorized; 28,411 (2012) and 26,390
(2011) shares issued and outstanding
Additional paid-in capital 97,959 92,709
Accumulated deficit (77,801) (72,740)
Accumulated other comprehensive loss (55) (56)
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Total stockholders' equity 20,131 19,939
------------- -------------
Total liabilities and stockholders' equity $ 34,349 $ 32,173
============= =============
Netlist, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, July 2, June 30, July 2,
2012 2011 2012 2011
--------- --------- --------- ---------
Net sales $ 10,552 $ 16,001 $ 24,519 $ 28,001
Cost of sales(1) 7,814 11,064 16,345 19,260
--------- --------- --------- ---------
Gross profit 2,738 4,937 8,174 8,741
--------- --------- --------- ---------
Operating expenses:
Research and development(1) 3,770 3,755 7,612 7,439
Selling, general and
administrative(1) 2,871 2,583 5,480 5,500
--------- --------- --------- ---------
Total operating expenses 6,641 6,338 13,092 12,939
--------- --------- --------- ---------
Operating loss (3,903) (1,401) (4,918) (4,198)
--------- --------- --------- ---------
Other income (expense):
Interest expense, net (79) (50) (150) (75)
Other income (expense), net 3 (59) 8 (59)
--------- --------- --------- ---------
Total other expense, net (76) (109) (142) (134)
--------- --------- --------- ---------
Loss before provision for income
taxes (3,979) (1,510) (5,060) (4,332)
Provision for income taxes 1 1 1 1
--------- --------- --------- ---------
Net loss $ (3,980) $ (1,511) $ (5,061) $ (4,333)
========= ========= ========= =========
Net loss per common share:
Basic and diluted $ (0.14) $ (0.06) $ (0.18) $ (0.17)
Weighted-average common shares
outstanding:
Basic and diluted 28,111 24,988 27,420 24,935
(1) Amounts include stock-based
compensation expense as
follows:
Cost of sales $ 42 $ 18 $ 77 $ 31
Research and development 153 146 345 288
Selling, general and
administrative 287 242 583 440
Netlist, Inc. and Subsidiaries
Unaudited Schedule Reconciling GAAP Net Loss to Non-GAAP EBITDA and
Adjusted EBITDA
(in thousands)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, July 2, June 30, July 2,
2012 2011 2012 2011
--------- --------- --------- ---------
GAAP net loss $ (3,980) $ (1,511) $ (5,061) $ (4,333)
Interest expense, net 79 50 150 75
Provision for income taxes 1 1 1 1
Depreciation and amortization 535 602 1,070 1,183
--------- --------- --------- ---------
EBITDA (3,365) (858) (3,840) (3,074)
Stock-based compensation 482 406 1,005 759
Other income (expense), net (3) 59 (8) 59
--------- --------- --------- ---------
Adjusted EBITDA $ (2,886) $ (393) $ (2,843) $ (2,256)
========= ========= ========= =========
The table above reconciles net loss to EBITDA and Adjusted EBITDA. EBITDA is defined as net loss before net interest expense, income taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA before net non-operating expense (income) and stock-based compensation expense. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, management believes that it is useful to
For more information, please contact:Brainerd Communicators, Inc. Corey Kinger /Mike Smargiassi (investors)Sharon Oh (media) NLST@braincomm.com (212) 986-6667Gail M. Sasaki Chief Financial OfficerNetlist, Inc. (949) 435-0025
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