Netlist: Fiscal 4Q13 Financial Results

Netlist, Inc.www.netlist.com reported financial results for the fourth quarter and full year ended December 28, 2013.

Revenues for the fourth quarter ended December 28, 2013, were $7.7 million, compared to revenues of $6.0 million for the fourth quarter ended December 29, 2012.

Gross profit for the fourth quarter ended December 28, 2013, was $1.9 million, or 24.6%, compared to a gross profit of $0.8 million, or 14.0% of revenues, for the fourth quarter ended December 29, 2012.

Adjusted EBITDA loss is a non-GAAP measure in which the net interest expense, benefit of income taxes, depreciation, amortization, stock-based compensation and net other income are added back to the GAAP basis net income (loss). The adjusted EBITDA loss was ($0.5) million for the fourth quarter ended December 28, 2013, compared to an adjusted EBITDA loss of ($3.1) million for the prior year period.

Net loss for the fourth quarter ended December 28, 2013, was ($1.6) million, or ($0.05) loss per share, compared to a net loss in the prior year period of ($4.1) million, or ($0.14) loss per share. These results include stock-based compensation expense of $0.4 million for both the fourth quarter ended December 28, 2013 and December 29, 2012.

As of December 28, 2013, cash and cash equivalents and restricted cash were $7.8 million, total assets were $16.1 million, working capital was $10.6 million, total debt, net of debt discounts, was $5.1 million, and stockholders’ equity was $7.0 million.

“Our 2013 results reflect substantial progress in the strategic transition of our business,” said C.K. Hong, CEO, Netlist. “We gained increasing traction in introducing our flagship product lines, HyperCloud and Vault, while ramping down legacy projects. We also took important steps towards further strengthening our intellectual property position, including a major victory in the US Patent Trial and Appeals Board with regard to our seminal patents covering LRDIMM and allowances by the USPTO of critical hybrid memory patents. In the fourth quarter we posted a significant improvement in year-over-year results, primarily due to sizeable increases in demand for our NVvault family of products combined with our ongoing efforts to control our costs. As we look out into 2014, we believe market requirements will accelerate for both our products and our IP.”

Revenues for the twelve months ended December 28, 2013, were $23.0 million, compared to revenues of $36.9 million for the twelve months ended December 29, 2012. Gross profit for the twelve months ended December 28, 2013, was $3.1 million, or 13.5% of revenues, compared to a gross profit of $9.4 million, or 25.5% of revenues, for the twelve months ended December 29, 2012.

Adjusted EBITDA loss was ($6.7) million for the twelve month period ended December 28, 2013, compared to an adjusted EBITDA loss of ($9.6) million for the prior year period.

Net loss for the twelve months ended December 28, 2013, was ($10.8) million, or ($0.35) loss per share, compared to a net loss in the prior year period of ($14.0) million, or ($0.50) loss per share. These results include stock-based compensation expense of $1.7 million for 2013, compared to $1.9 million for 2012.