0001104659-09-062077 8-K 3 20091102 2.02 9.01 20091103 20091103 NETLIST INC 0001282631 3674 954812784 DE 8-K 34 001-33170 091153501 475 GODDARD IRVINE CA 92618 8-K 1 a09-32742_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):  November 2, 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 November 2, 2009, Netlist, Inc. (the “Company”) issued a press release announcing the Company’s results of operations for the quarter ended October 3, 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 November 2, 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: November 2, 2009

NETLIST, INC.

 

 

 

 

 

/s/ Gail Itow

 

Gail Itow

 

Vice President and Secretary

 

3


EX-99.1 2 a09-32742_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE for November 2, 2009 at 4:00 PM EST

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 THIRD QUARTER, NINE-MONTH RESULTS

 

Strong Sequential Revenue Growth

 

IRVINE, CA (November 2, 2009) . . . Netlist, Inc. (NASDAQ: NLST) today reported financial results for the third quarter and nine months ended October 3, 2009.  Revenues for the third quarter and nine months ended October 3, 2009, were $6.4 million and $11.8 million, respectively, compared to $28.9 million and $60.4 million for the third quarter and nine months ended September 27, 2008.  Revenue for the 2009 third quarter doubled from the $3.2 million in this year’s second quarter.

 

The year-over-year decline in revenues was driven by a reduction in demand from the Company’s customer base mainly due to the commoditization of certain product offerings.  In response to the current lower base of revenue, costs have been aggressively managed downward to better match those levels of revenue.  The Company continues to invest heavily in R&D as it executes on the planned technology transition to its next-generation memory subsystems.

 

“We are very pleased by the progress of our next-generation product development,” Chief Executive Officer Chun K. Hong said.  “We remain on track to launch the first of our new products before the end of the year.  The improving market for high-performance computing, firming prices for memory and the early interest from OEMs in our chip-based technologies have given us reason for optimism as we look into 2010 and beyond.”

 

Gross profit for the third quarter ended October 3, 2009, was $1.6 million, or a gross margin of 24.3 percent, compared to $2.0 million, or a gross margin of 7.1 percent for the third quarter ended September 27, 2008.  This is an improvement from the second quarter gross profit of $244,000, or a gross margin of 7.7 percent.  Gross profit for the nine months ended October 3, 2009, was $1.3 million, or a gross margin of 10.8 percent, compared to gross profit of $7.8 million, or a gross margin of 13.0 percent in the year-earlier period.

 

Net loss for the 2009 third quarter was $2.1 million, or $0.11 loss per share, compared to a net loss in the prior year period of $7.4 million, or $0.37 loss per share.  Net loss for the 2009 first nine months was $9.9 million, or $0.50 loss per share, compared to a net loss of $10.3 million, or a $0.52 loss per share.  These results include stock-based compensation expense in the third quarter and nine months ended October 3, 2009 of $631,000 and $1.2 million, respectively, compared with $362,000 and $981,000 in the prior year periods.

 



 

During the third quarter, the Company remained focused on preserving cash.  As of October 3, 2009, cash, cash equivalents, and investments in marketable securities were $16.4 million, total assets were $27.1 million, working capital was $14.5 million, total long-term debt was $192,000, and stockholders’ equity was $21.6 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 third quarter and nine months ended October 3, 2009.  The dial-in number for the call is

 

1-877-941-8602.  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 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 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 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

 

Nine Months Ended

 

 

 

October 3,

 

September 27,

 

October 3,

 

September 27,

 

 

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

6,446

 

$

28,876

 

$

11,781

 

$

60,409

 

Cost of sales(1)

 

4,879

 

26,832

 

10,507

 

52,575

 

Gross profit

 

1,567

 

2,044

 

1,274

 

7,834

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development(1)

 

1,975

 

1,651

 

5,619

 

4,943

 

Selling, general and administrative(1)

 

2,115

 

3,364

 

6,170

 

10,142

 

Total operating expenses

 

4,090

 

5,015

 

11,789

 

15,085

 

Operating loss

 

(2,523

)

(2,971

)

(10,515

)

(7,251

)

Other income:

 

 

 

 

 

 

 

 

 

Interest (expense) income, net

 

(25

)

38

 

75

 

381

 

Other income (expense), net

 

4

 

13

 

134

 

(55

)

Total other income (expense), net

 

(21

)

51

 

209

 

326

 

Loss before provision (benefit) for income taxes

 

(2,544

)

(2,920

)

(10,306

)

(6,925

)

Provision (benefit) for income taxes

 

(458

)

4,502

 

(409

)

3,332

 

Net loss

 

$

(2,086

)

$

(7,422

)

$

(9,897

)

$

(10,257

)

Net loss per common share:

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.11

)

$

(0.37

)

$

(0.50

)

$

(0.52

)

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic and diluted

 

19,855

 

19,855

 

19,855

 

19,845

 

 


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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

146

 

$

44

 

$

213

 

$

106

 

Research and development

 

156

 

55

 

262

 

140

 

Selling, general and administrative

 

329

 

263

 

753

 

735

 

 

 

 

 

 

 

 

 

 

 

 

MORE-MORE-MORE

 



 

Netlist, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

October 3,

 

January 3,

 

 

 

2009

 

2009

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

11,501

 

$

15,214

 

Investments in marketable securities

 

3,115

 

5,199

 

Accounts receivable, net

 

2,732

 

1,917

 

Inventories

 

1,886

 

1,829

 

Income taxes receivable

 

 

1,880

 

Prepaid expenses and other current assets

 

636

 

761

 

Total current assets

 

19,870

 

26,800

 

 

 

 

 

 

 

Property and equipment, net

 

5,202

 

6,939

 

Long-term investments in marketable securities

 

1,742

 

960

 

Other assets

 

252

 

234

 

Total assets

 

$

27,066

 

$

34,933

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,969

 

$

1,786

 

Current portion of long-term debt

 

115

 

474

 

Current portion of deferred gain on sale and leaseback transaction

 

118

 

118

 

Income taxes payable

 

78

 

 

Accrued expenses and other current liabilities

 

3,093

 

2,083

 

Total current liabilities

 

5,373

 

4,461

 

Long-term debt, net of current portion

 

77

 

130

 

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

 

19

 

108

 

Total liabilities

 

5,469

 

4,699

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

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

 

20

 

20

 

shares issued and outstanding

 

 

 

 

 

Additional paid-in capital

 

70,611

 

69,383

 

Accumulated deficit

 

(49,010

)

(39,113

)

Accumulated other comprehensive loss

 

(24

)

(56

)

Total stockholders’ equity

 

21,597

 

30,234

 

Total liabilities and stockholders’ equity

 

$

27,066

 

$

34,933

 

 

# # # #

 


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