Netlist Inc (NLST) reports earnings

The report was filed on March 28, 2025

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Netlist Inc (NLST-4.61%) has submitted its Form 10-K filing for the fiscal year ended December 28, 2024.

The filing details Netlist's operations as a provider of advanced memory and storage solutions. The company reported net sales of $147.1 million for fiscal year 2024, a significant increase from $69.2 million in the previous year, primarily driven by higher sales of RDIMM and discrete component products.

Cost of sales for the year was $144.2 million, resulting in a gross profit of $2.9 million. The gross margin percentage decreased to 2% from 3% in the previous year, attributed to changes in product mix.

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Operating expenses for the year totaled $58.1 million, including research and development expenses of $8.1 million and intellectual property legal fees of $38 million. Selling, general, and administrative expenses were $12.1 million.

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Netlist reported an operating loss of $55.2 million and a net loss of $53.9 million for the fiscal year. The company had cash and cash equivalents of $22.5 million as of December 28, 2024.

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The company highlighted several ongoing legal proceedings, including litigation with Samsung and Micron, and various Inter Partes Review proceedings related to its patents.

Netlist also announced a new purchase agreement with Lincoln Park Capital Fund, LLC, allowing for the sale of up to $75 million in common stock over a 36-month period.

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The filing outlines risks related to the company's reliance on a small number of suppliers and customers, as well as its dependence on the successful development and commercialization of new products.

Netlist's management identified a material weakness in internal control over financial reporting, specifically the lack of an independent board and audit committee.

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The company does not anticipate paying dividends on its common stock in the foreseeable future and intends to use available funds to finance operations.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Netlist Inc annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.