Saturday, November 3, 2012

Technology Earnings Watch; Netlist Q4 Results

Netlist Inc. (NASDAQ: NLST) reported a wider fourth-quarter loss as compared to the prior year period. Despite, a year-over-year increase in revenues for both periods, the higher sales and marketing cost affected its margins.

The company reported revenue for the quarter of $10.1 million, an increase of 51% from revenues of $6.7 million for the fourth quarter of 2010.� The gross profit for the fourth quarter was $3.3 million, or 32.6% of revenues, surging from a gross profit of $1.7 million, or 25.1% of revenues, for the fourth quarter of 2010.� Net loss for the fourth quarter was $(3.2 million), or $(0.13) loss per share, compared to a net loss in the prior year period of $(3.0 million), or $(0.15) loss per share. These results include stock-based compensation expense of $0.3 million compared with $0.3 million in the prior year period.

For the full year, the company reported revenues of $37.9 million, an increase of 105% from revenues of $18.5 million for the last year. The gross profit for the year was $9.9 million, or 26.3% of revenues, an increase of 230% from gross profit of $3.0 million, or 16.0% of revenues for the previous year.� The net loss for the year was $(15.1 million), or $(0.64) loss per share as compared to a net loss in the prior year of $(12.9 million), or $(0.65) loss per share.� The increased loss was primarily due to higher engineering, sales and marketing costs associated with technology development, and sampling and qualification efforts at various OEMs and end-users. The results include stock-based compensation expense for both years of $1.5 million.

The company stock has traded in the range of $1.81 and $4.85 during the past 52 weeks. The company�s market cap is $67.26 million.

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