0001104659-10-027961 8-K 3 20100511 2.02 9.01 20100512 20100512 NETLIST INC 0001282631 3674 954812784 DE 8-K 34 001-33170 10824702 475 GODDARD IRVINE CA 92618 8-K 1 a10-10045_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

Form 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  May 11, 2010

 

Netlist, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-33170

 

95-4812784

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

51 Discovery, Irvine, California

 

92618

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code:  (949) 435-0025

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02     Results of Operations and Financial Condition.

 

On May 11, 2010, Netlist, Inc. (the “Company”) issued a press release announcing the Company’s results of operations for the quarter ended April 3, 2010. The press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein in its entirety.

 

The information included in this Item 2.02 of Current Report on Form 8-K, including the attached Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01     Financial Statements and Exhibits.

 

d)  Exhibits

 

Exhibit

 

 

Number

 

Description

 

 

 

99.1

 

Press Release, dated May 11, 2010.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 11, 2010

NETLIST, INC.

 

 

 

 

 

/s/ Gail M. Sasaki

 

Gail M. Sasaki

 

Vice President and Chief Financial Officer

 

3


EX-99.1 2 a10-10045_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

NEWS RELEASE for May 11, 2010 at 4:00 PM EDT

Contact:

 

Allen & Caron Inc

 

Gail M. Sasaki

 

 

Jill Bertotti (investors)

 

Chief Financial Officer

 

 

jill@allencaron.com

 

Netlist, Inc.

 

 

Len Hall (media)

 

(949) 435-0025

 

 

len@allencaron.com

 

 

 

 

(949) 474-4300

 

 

 

NETLIST REPORTS FIRST QUARTER RESULTS

 

Year-over-Year Revenues Nearly Triples; Margins Increase; Balance Sheet Strengthened by Offering Proceeds

 

IRVINE, CA (May 11, 2010) . . . Netlist, Inc. (NASDAQ: NLST) today reported financial results for the first quarter ended April 3, 2010.

 

Revenues for the first quarter ended April 3, 2010, were $7.9 million, up 265 percent from revenues of $2.2 million for the first quarter ended April 4, 2009.  Sequentially, revenues improved 17.8 percent from the $6.7 million in revenues for the fourth quarter ended January 2, 2010.  Gross profit for the first quarter ended April 3, 2010, was $1.8 million, or 23.0 percent of revenues, compared to a gross loss of $537,000, or negative 24.8 percent of revenues for the first quarter ended April 4, 2009.

 

Net loss for the first quarter ended April 3, 2010, was $3.0 million, or $0.14 loss per share, compared to a net loss in the prior year period of $3.8 million, or $0.19 loss per share.  These results include stock-based compensation expense in the first quarter ended April 3, 2010, of $382,000 compared with $307,000 in the prior year period.

 

“We continue to make important strides toward commercialization of our two emerging proprietary memory platforms, HyperCloud™ and NetVault™.  We received our first commercial orders for NetVault in the period and we announced our first customer qualification for HyperCloud in April.  We believe we are in a strong position to continue this progress through the balance of 2010,” Chief Executive Officer C.K. Hong said.

 

The Company sold 4.6 million shares of common stock in a registered public offering in March 2010.  The shares were sold to the public at a per share price of $3.85.  The Company received net proceeds of $16.3 million, after underwriting discounts and commissions, and estimated expenses payable by the Company.

 

As of April 3, 2010, cash, cash equivalents, and investments in marketable securities were $26.4 million, total assets were $41.9 million, working capital was $27.5 million, total debt was $125,000, and stockholders’ equity was $33.0 million.

 



 

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 3, 2010.  The dial-in number for the call is 1-877-941-1428.  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 the server and high-performance computing and communications markets.  The Company’s memory subsystems 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.  Netlist was founded in 2000 and is headquartered in Irvine, California with manufacturing facilities in Suzhou, People’s Republic of China.

 

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 NetVault™ 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; 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 February 19, 2010, 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.

 

TABLES FOLLOW

 



 

Netlist, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

April 3,

 

April 4,

 

 

 

2010

 

2009

 

 

 

 

 

 

 

Net sales

 

$

7,890

 

$

2,162

 

Cost of sales(1)

 

6,072

 

2,699

 

Gross profit (loss)

 

1,818

 

(537

)

Operating expenses:

 

 

 

 

 

Research and development(1)

 

3,008

 

1,614

 

Selling, general and administrative(1)

 

2,570

 

1,935

 

Total operating expenses

 

5,578

 

3,549

 

Operating loss

 

(3,760

)

(4,086

)

Other income:

 

 

 

 

 

Interest income, net

 

1

 

82

 

Other income, net

 

67

 

175

 

Total other income, net

 

68

 

257

 

Loss before (benefit) provision for income taxes

 

(3,692

)

(3,829

)

(Benefit) provision for income taxes

 

(727

)

18

 

Net loss

 

$

(2,965

)

$

(3,847

)

Net loss per common share:

 

 

 

 

 

Basic

 

$

(0.14

)

$

(0.19

)

Diluted

 

$

(0.14

)

$

(0.19

)

Weighted-average common shares outstanding:

 

 

 

 

 

Basic and diluted

 

20,688

 

19,855

 

 


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

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

10

 

$

29

 

Research and development

 

46

 

58

 

Selling, general and administrative

 

326

 

220

 

 

MORE-MORE-MORE

 



 

Netlist, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except par value)

 

 

 

April 3,

 

January 2,

 

 

 

2010

 

2010

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

19,237

 

$

9,942

 

Investments in marketable securities

 

6,268

 

3,949

 

Accounts receivable, net

 

5,365

 

4,273

 

Inventories

 

3,929

 

2,232

 

Income taxes receivable

 

649

 

 

Prepaid expenses and other current assets

 

880

 

854

 

Total current assets

 

36,328

 

21,250

 

 

 

 

 

 

 

Property and equipment, net

 

4,409

 

4,779

 

Long-term investments in marketable securities

 

906

 

941

 

Other assets

 

218

 

221

 

Total assets

 

$

41,861

 

$

27,191

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

5,388

 

$

4,057

 

Accrued payroll and related liabilities

 

1,758

 

2,332

 

Accrued expenses and other current liabilities

 

478

 

605

 

Accrued engineering charges

 

1,032

 

661

 

Current portion of long-term debt

 

101

 

108

 

Current portion of deferred gain on sale and leaseback transaction

 

79

 

108

 

Total current liabilities

 

8,836

 

7,871

 

Long-term debt, net of current portion

 

24

 

51

 

Total liabilities

 

8,860

 

7,922

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value - 90,000 shares authorized; 24,780 (2010) and 20,111 (2009) shares issued and outstanding

 

25

 

20

 

Additional paid-in capital

 

88,059

 

71,332

 

Accumulated deficit

 

(54,991

)

(52,026

)

Accumulated other comprehensive loss

 

(92

)

(57

)

Total stockholders’ equity

 

33,001

 

19,269

 

Total liabilities and stockholders’ equity

 

$

41,861

 

$

27,191

 

 

# # # #

 


GRAPHIC 3 g100451mmi001.jpg GRAPHIC begin 644 g100451mmi001.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T- M#AT5%A$8(Q\E)"(?(B$F*S7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#V:BBB@`HH MHH`SO$%Q-::!?7$#F.6.%F1AV.*\[MK_`,;S:+_;4-^9K5"25^4L0#S\N.E> M@>*/^17U+_KW?^5EQR8NW.FE:Z7Y"T445H*/\`D5]2_P"O=_Y5P@.?A!]+C_V>N[\4?\BOJ7_7N_\`*O/X[#4M M0^&UI'8*9$6Y=IHP0"PSQU]#6,]_D>EA;*]/I*F4%+.]=4!2T.*:L0JTXS*6`@D2HX92!UY'%/@FBN(5FAD62-QE70Y##U!KR#P7)=>%=# MLXKJYV$E#[-SCW%>B^!_\`D1]%_P"O*+_T$4`:E[J=AIH1 MKZ]M[4/PIGE"!OIFBRU.PU)6>PO;>Z5#AF@E#A3Z'%<=X_'_`!4GA<_V7_:F M)KC_`$3Y/WG[O_;XXZ\^E=-H$4:V/F+H:Z,[L=]N%C!..A.S@T`7;R_L]/A\ MZ]NH;:+.W?-($7/IDU5A\1:)\ MC,EM/',@8J6C8,,CJ,CO4M<;\+?^16N/^PC<_P#HPT`=G42W,#W#VZ31M-&` M7C#`L@/3([9J6N2T3_DIGB?_`*][/_T%J`.K9@BEF(`'))/`K.L/$>BZK.U+XBTMM:\/WVEK.8&NX6C$@_AR.M<[X:OX;"^M=`U M;1H--U:*`I;RPH/*ND4#)C<#(Z`E3S0!V,LL<$32RNJ1H"S,QP%`ZDFLW_A* M?#V,_P!NZ;_X%I_C6E+$DT31R*KHXPRL,@CT(KC%T'1_^%E/!_9-CY/]CA_+ M^SIMW>=C.,=<4`5;'2[75?@C;6UTA9%TWS4(."KJ"RD'L0171^"/^1(T7_KR MC_\`01110!Q_QCUB\\/R:!JM@R+/H:M?"?QEK'BZ#4GU:2) MVMGC$?EQA.H.?Y444`>A5RGP^&+#6/\`L,W7_H5%%`'5U\X0_$;Q%X7GO-,T MR:!;=;N5P)(0QR7.>:**`/HJU=I;6*1OO.BL?J17,Z,H'Q)\2GUM[3_T%J** M`-3Q9>7&G^%M0O+24Q3P0EXW`!P1['BO-_ASXBU'Q]XI6\UN1"VD1,]LD*!% @#.-I8]R<>]%%`'K_`&KFD'_%T)#_`-08?^CC110!_]D_ ` end