IRVINE, Calif., March 27, 2015 /PRNewswire/ -- Netlist, Inc.
(NASDAQ: NLST), a leading provider of high performance memory
solutions for the cloud computing and storage markets, today
reported financial results for the fourth quarter and full year
ended December 27, 2014.
Revenues for the three months ended December 27, 2014, were $2.5 million, compared to revenues of
$7.7 million for the fourth quarter
ended December 28, 2013. Gross
loss for the three months ended December 27,
2014, was ($0.1) million
compared to a gross profit of $1.9
million, for the fourth quarter ended December 28, 2013.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) was a loss of ($4.8)
million for the fourth quarter ended December 27, 2014, compared to an adjusted EBITDA
loss of ($0.5) million for the prior
year period.
Net loss for the fourth quarter ended December 27, 2014, was ($5.8) million, or ($0.14) loss per share, compared to a net loss in
the prior year period of ($1.6)
million, or ($0.05) loss per
share. These results include stock-based compensation expense
of $0.5 million for the fourth
quarter of 2014, compared to $0.4
million for the fourth quarter of 2013.
Revenues for the twelve months ended December 27, 2014, were $19.2 million, compared to revenues of
$23.0 million for the twelve months
ended December 28, 2013. Gross
profit for the twelve months ended December
27, 2014, was $4.0 million, or
20.7 percent of revenues, compared to a gross profit of
$3.1 million, or 13.5 percent of
revenues, for the twelve months ended December 28, 2013.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization) loss was ($12.9)
million for the twelve months ended December 27, 2014, compared to an adjusted EBITDA
loss of ($8.3) million for the prior
year period.
Net loss for the twelve months ended December 27, 2014, was ($15.4) million, or ($0.38) loss per share, compared to a net loss in
the prior year period of ($10.8)
million, or ($0.35) loss per
share. These results include stock-based compensation expense
of $2.0 million and $1.7 million for the twelve month periods ended
December 27, 2014 and December 28, 2013, respectively.
As of December 27, 2014, cash and
cash equivalents and restricted cash were $11.7 million, total assets were $16.2 million, working capital was $7.9 million, total debt, net of debt discounts,
was $5.8 million, and stockholders'
equity was $4.7 million.
Commenting on the results, C.K.
Hong, Netlist's Chief Executive Officer, stated, "Our 2014
performance reflects ongoing investment in the development of our
next generation NVvault product lines and HyperVault - the fastest
next generation hybrid memory solution, as well as investment in
our intellectual property portfolio. Netlist continues to be a
pioneer in high performance memory for the enterprise computing and
storage space. The technologies we have developed, including
NVvault and EXPRESSvault, are gaining considerable industry
validation and support, particularly with their enablement on the
memory channel. We remain confident that we are well positioned to
participate in the growth of these expanding markets over the next
few years."
Conference Call Information
C.K. Hong, Chief Executive
Officer, and Gail Sasaki, Chief
Financial Officer, will host an investor conference call today,
March 27, 2015 at 10:00 a.m. Eastern Time to review the company's
results for the fourth quarter and full year ended December 27, 2014. The dial-in number for
the call is 1-412-858-4600. The live webcast and archived
replay of the call can be accessed in the Investors section of
Netlist's website at www.netlist.com.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including EBITDA
and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation
and Amortization), may be considered non-GAAP financial measures.
Netlist believes this information is useful to investors because it
provides a basis for measuring Netlist's available capital
resources, the operating performance of Netlist's business and
Netlist's cash flow, excluding net interest expense, provisions for
income taxes, depreciation, amortization, stock-based compensation
and net other expense that would normally be included in the
most directly comparable measures calculated and presented in
accordance with Generally Accepted Accounting Principles ("GAAP").
Netlist's management uses these non-GAAP financial measures along
with the most directly comparable GAAP financial measures in
evaluating Netlist's operating performance, capital resources and
cash flow. Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
presented in compliance with GAAP, and non-financial measures as
reported by Netlist may not be comparable to similarly titled
amounts reported by other companies.
Adjusted EBITDA loss is a non-GAAP measure in which the net
interest expense, provision for income taxes, depreciation,
amortization, stock-based compensation and net other expense are
added back to the GAAP basis loss. The non-GAAP measures are
described above and are reconciled to the corresponding GAAP
measure in the condensed consolidated financial statements portion
of this release under the heading "Unaudited Schedule Reconciling
GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA."
About Netlist:
Netlist, Inc. designs and manufactures high-performance,
logic-based memory subsystems for server and storage applications
for cloud computing. Netlist's flagship products include NVvault®
and EXPRESSvault™, a family of hybrid memory products that
significantly accelerate system performance and provide mission
critical fault tolerance, as well as HyperVault, its next
generation hybrid memory solution which is under development and
greatly expands the performance and capacity of DRAM channel
storage. The Company's product offering also includes HyperCloud®,
a patented memory technology that breaks traditional performance
barriers, and a broad portfolio of industrial Flash and specialty
memory subsystems including VLP (very low profile) DIMMs and
Planar-X RDIMMs. Netlist has steadily invested in and grown its
worldwide IP portfolio, which now includes 88 issued and pending
patents in the areas of high performance memory and hybrid memory
technologies.
Netlist develops technology solutions for customer applications
in which high-speed, high-capacity, small form factor and efficient
heat dissipation are key requirements for system memory. These
customers include OEMs and hyperscale datacenter operators that
design and build servers, storage systems and high-performance
computing clusters, engineering workstations and telecommunications
equipment. Founded in 2000, Netlist is headquartered in
Irvine, CA with manufacturing
facilities in Suzhou, People's Republic
of China. Learn more at www.netlist.com.
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, risks associated with the launch and commercial
success of our products, programs and technologies; the success of
product partnerships; continuing development, qualification and
volume production of HyperVault™, EXPRESSvault™, NVvault®,
HyperCloud® and VLP Planar-X RDIMM; the timing and
magnitude of the decrease in sales to our key customer; our ability
to leverage our NVvault® and EXPRESSvault™ technology in a
more diverse customer base; the rapidly-changing nature of
technology; risks associated with intellectual property,
including risks associated with the inherent uncertainty of
the litigation process, and we can provide no assurance that our
efforts to mitigate the effects of the jury verdict will be
successful, patent infringement litigation against us as well as
the costs and unpredictability of litigation over infringement of
our intellectual property and the possibility of our patents being
reexamined by the United States Patent and Trademark office;
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 and vendors in the supply chain;
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 filed on March 18,
2014, 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.
For more information,
please contact:
|
|
|
|
Brainerd
Communicators, Inc.
|
Netlist,
Inc.
|
Mike Smargiassi or
Jenny Perales
|
Gail M.
Sasaki
|
NLST@braincomm.com
|
Chief Financial
Officer
|
(212)
986-6667
|
(949)
435-0025
|
Netlist,
Inc.
|
Consolidated
Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
27,
|
|
December
28,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
11,040
|
|
$
|
6,701
|
|
Restricted
cash
|
|
700
|
|
|
1,100
|
|
Accounts receivable,
net
|
|
1,091
|
|
|
4,866
|
|
Inventories
|
|
1,880
|
|
|
2,620
|
|
Prepaid expenses and
other current assets
|
|
988
|
|
|
823
|
|
Total current
assets
|
|
15,699
|
|
|
16,110
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
393
|
|
|
1,143
|
|
Other
assets
|
|
150
|
|
|
422
|
|
Total
assets
|
$
|
16,242
|
|
$
|
17,675
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
3,957
|
|
$
|
3,795
|
|
Accrued payroll and
related liabilities
|
|
710
|
|
|
635
|
|
Accrued expenses and
other current liabilities
|
|
420
|
|
|
533
|
|
Accrued engineering
charges
|
|
500
|
|
|
500
|
|
Current portion of
long-term debt, net of debt discount
|
|
2,205
|
|
|
-
|
|
Total current
liabilities
|
|
7,792
|
|
|
5,463
|
|
Long-term debt, net
of current portion and debt discount
|
|
3,632
|
|
|
5,099
|
|
Long-term warranty
liability
|
|
99
|
|
|
100
|
|
Total
liabilities
|
|
11,523
|
|
|
10,662
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred
stock
|
|
-
|
|
|
-
|
|
Common
stock
|
|
41
|
|
|
31
|
|
Additional paid-in
capital
|
|
117,546
|
|
|
104,469
|
|
Accumulated
deficit
|
|
(112,868)
|
|
|
(97,487)
|
|
Total stockholders'
equity
|
|
4,719
|
|
|
7,013
|
|
Total liabilities and
stockholders' equity
|
$
|
16,242
|
|
$
|
17,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Netlist, Inc. and
Subsidiaries
|
Unaudited
Condensed Consolidated Statements of Operations
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
|
December
27,
|
|
|
December
28,
|
|
|
December
27,
|
|
|
December
28,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,516
|
|
$
|
7,730
|
|
$
|
19,195
|
|
$
|
23,048
|
Cost of
sales(1)
|
|
|
2,629
|
|
|
5,831
|
|
|
15,231
|
|
|
19,943
|
Gross profit
(loss)
|
|
|
(113)
|
|
|
1,899
|
|
|
3,964
|
|
|
3,105
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development(1)
|
|
|
1,280
|
|
|
938
|
|
|
4,835
|
|
|
4,568
|
Intellectual property
legal fees
|
|
|
2,419
|
|
|
804
|
|
|
6,138
|
|
|
2,115
|
Selling, general and
administrative(1)
|
|
|
1,611
|
|
|
1,387
|
|
|
6,796
|
|
|
6,267
|
Total operating
expenses
|
|
|
5,310
|
|
|
3,129
|
|
|
17,769
|
|
|
12,950
|
Operating
loss
|
|
|
(5,423)
|
|
|
(1,230)
|
|
|
(13,805)
|
|
|
(9,845)
|
Other expense
(net):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(393)
|
|
|
(390)
|
|
|
(1,574)
|
|
|
(932)
|
Other income,
net
|
|
|
5
|
|
|
28
|
|
|
-
|
|
|
20
|
Total other expense,
net
|
|
|
(388)
|
|
|
(362)
|
|
|
(1,574)
|
|
|
(912)
|
Loss before provision
for income taxes
|
|
|
(5,811)
|
|
|
(1,592)
|
|
|
(15,379)
|
|
|
(10,757)
|
Provision for income
taxes
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
9
|
Net loss
|
|
$
|
(5,811)
|
|
$
|
(1,592)
|
|
$
|
(15,381)
|
|
$
|
(10,766)
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.14)
|
|
$
|
(0.05)
|
|
$
|
(0.38)
|
|
$
|
(0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
41,483
|
|
|
31,752
|
|
|
40,304
|
|
|
30,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
include stock-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
$
|
14
|
|
$
|
12
|
|
$
|
56
|
|
$
|
49
|
Research and
development
|
|
|
178
|
|
|
148
|
|
|
726
|
|
|
588
|
Selling, general and
administrative
|
|
|
269
|
|
|
263
|
|
|
1,230
|
|
|
1,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Netlist, Inc.
|
Schedule
Reconciling GAAP Net Loss to Non-GAAP EBITDA and Adjusted
EBITDA
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
December 27,
|
|
December 28,
|
|
December 27,
|
|
December 28,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
$
|
(5,811)
|
|
$
|
(1,592)
|
|
$
|
(15,381)
|
|
$
|
(10,766)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
393
|
|
|
390
|
|
|
1,574
|
|
|
932
|
|
|
|
Provision for income
taxes
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
9
|
|
|
|
Depreciation and
amortization
|
|
|
160
|
|
|
310
|
|
|
882
|
|
|
1,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(loss)
|
|
|
(5,258)
|
|
|
(892)
|
|
|
(12,923)
|
|
|
(8,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
461
|
|
|
423
|
|
|
2,012
|
|
|
1,669
|
|
|
|
Other (income)
expense, net
|
|
|
(5)
|
|
|
(28)
|
|
|
-
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(loss)
|
|
$
|
(4,802)
|
|
$
|
(497)
|
|
$
|
(10,911)
|
|
$
|
(6,660)
|
|
|
Logo - http://photos.prnewswire.com/prnh/20150225/177763LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/netlist-reports-fourth-quarter-and-full-year-2014-results-300056939.html
SOURCE Netlist, Inc.