0001104659-09-033256 8-K 3 20090513 2.02 9.01 20090518 20090518 NETLIST INC 0001282631 3674 954812784 DE 8-K 34 001-33170 09836014 475 GODDARD IRVINE CA 92618 8-K 1 a09-13672_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 13, 2009

 

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 13, 2009, Netlist, Inc. (the “Company”) issued a press release announcing the Company’s results of operations for the quarter ended April 4, 2009. 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 13, 2009.

 

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 15, 2009

NETLIST, INC.

 

 

 

 

 

/s/   Gail Itow

 

Gail Itow

 

Vice President and Secretary

 

3


EX-99.1 2 a09-13672_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

NEWS RELEASE for May 13, 2009 at 4:00 PM EDT

Contact:

Allen & Caron Inc

Gail Itow

 

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

 

IRVINE, CA (May 13, 2009) . . . Netlist, Inc. (NASDAQ: NLST) today reported financial results for the first quarter ended April 4, 2009.  Revenues for the first quarter ended April 4, 2009, were $2.2 million compared to $13.1 million for the first quarter ended March 29, 2008.  The decline in revenues was driven by a sharp reduction in demand from the Company’s current customer base, ramp down of certain projects and the slower than expected growth in sales of the Company’s flash products.  The Company continues to transition to a new business strategy focused on the development of high-margin subsystems based on custom logic devices.

 

Negative gross profit for the first quarter ended April 4, 2009, was $537,000, or a negative gross margin of 25 percent, compared with a gross profit of $3.1 million, or a gross margin of 24 percent, in the year-earlier period.

 

Net loss for the first quarter ended April 4, 2009, was $3.8 million, or $0.19 loss per share, compared to a net loss in the prior year period of $584,000, or $0.03 loss per share.  Fully diluted weighted-average shares outstanding for the first quarter ended April 4, 2009, were 19.9 million, compared to 19.8 million in the corresponding year-earlier period.  These results include stock-based compensation expense in the first quarter ended April 4, 2009 of $307,000, compared with $244,000 in the prior year period.

 

During the first quarter, the Company remained focused on preserving cash.  As of April 4, 2009, cash, cash equivalents, and investments in marketable securities were $20.6 million, total assets were $30.8 million, working capital was $19.4 million, total long-term debt was $48,000, and stockholders’ equity was $26.7 million.

 

“We continue to make steady progress in the development of custom semiconductor logic devices, which will enable the next-generation of industry-leading high-density, high-speed, low-power memory subsystems,” Chief Executive Officer Chun K. Hong said.  “Current and potential OEM customers’ reception to these new technologies has been encouraging, and we remain on track to roll these out late in the year.  In the meantime, we have been successful in

 



 

managing our cash so that we have ample resources to develop, market and manufacture these new products in high volume.”

 

Conference Call Information

As previously announced, Netlist is conducting a conference call today to be broadcast live over the Internet at 4:00 p.m. Pacific Time/7:00 pm Eastern Time to discuss and review the financial results for the first quarter ended April 4, 2009.  The dial-in number for the call is 1-877-941-2928.  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, Inc.

Netlist designs and manufactures high-performance chip-based and non-chip 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, 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 maintains its headquarters in Irvine, California with manufacturing facilities in Suzhou, China.

 

Safe Harbor Statement

This news release contains forward-looking statements regarding future events and the future performance of Netlist, including future opportunities and growth for the company’s business. 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, the rapidly-changing nature of technology; volatility in the pricing of DRAM ICs and NAND; changes in and uncertainty of customer demand, including delays in product qualifications; delays in our and our 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 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 30, 2009, and subsequent filings with the U.S. Securities and Exchange Commission made by the Company from time to time.  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 Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

 

April 4,

 

March 29,

 

 

 

2009

 

2008

 

 

 

 

 

 

 

Net sales

 

$

2,162

 

$

13,104

 

Cost of sales(1)

 

2,699

 

9,973

 

Gross (loss) profit

 

(537

)

3,131

 

Operating expenses:

 

 

 

 

 

Research and development(1)

 

1,614

 

1,576

 

Selling, general and administrative(1)

 

1,935

 

3,468

 

Total operating expenses

 

3,549

 

5,044

 

Operating loss

 

(4,086

)

(1,913

)

Other income (expense):

 

 

 

 

 

Interest income, net

 

82

 

239

 

Other income (expense), net

 

175

 

(91

)

Total other income, net

 

257

 

148

 

Loss before provision (benefit) for income taxes

 

(3,829

)

(1,765

)

Provision (benefit) for income taxes

 

18

 

(1,181

)

Net loss

 

$

(3,847

)

$

(584

)

Net loss per common share:

 

 

 

 

 

Basic

 

$

(0.19

)

$

(0.03

)

Diluted

 

$

(0.19

)

$

(0.03

)

Weighted-average common shares outstanding:

 

 

 

 

 

Basic

 

19,855

 

19,820

 

Diluted

 

19,855

 

19,820

 

 


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

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

29

 

$

14

 

Research and development

 

58

 

23

 

Selling, general and administrative

 

220

 

207

 

 

MORE-MORE-MORE

 



 

Netlist, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

April 4,

 

January 3,

 

 

 

2009

 

2009

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

8,563

 

$

15,214

 

Investments in marketable securities

 

11,077

 

5,199

 

Accounts receivable, net

 

895

 

1,917

 

Inventories

 

1,322

 

1,829

 

Income taxes receivable

 

647

 

1,880

 

Prepaid expenses and other current assets

 

786

 

761

 

Total current assets

 

23,290

 

26,800

 

 

 

 

 

 

 

Property and equipment, net

 

6,272

 

6,939

 

Long-term investments in marketable securities

 

981

 

960

 

Other assets

 

225

 

234

 

Total assets

 

$

30,768

 

$

34,933

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,320

 

$

1,786

 

Current portion of long-term debt

 

433

 

474

 

Current portion of deferred gain on sale and leaseback transaction

 

118

 

118

 

Accrued expenses and other current liabilities

 

2,045

 

2,083

 

Total current liabilities

 

3,916

 

4,461

 

Long-term debt, net of current portion

 

48

 

130

 

Deferred gain on sale and leaseback transaction, net of current portion

 

78

 

108

 

Total liabilities

 

4,042

 

4,699

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value - 90,000 shares authorized; 19,855

 

20

 

20

 

Additional paid-in capital

 

69,690

 

69,383

 

Accumulated deficit

 

(42,960

)

(39,113

)

Accumulated other comprehensive loss

 

(24

)

(56

)

Total stockholders’ equity

 

26,726

 

30,234

 

Total liabilities and stockholders’ equity

 

$

30,768

 

$

34,933

 

 

# # # #

 


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