Netlist Reports First Quarter 2015 Results 

Netlist, Inc., a leading provider of high performance memory solutions for the cloud computing and storage markets, today reported financial results for the first quarter ended March 28, 2015.

Revenues for the three months ended March 28, 2015, were $2.1 million, compared to revenues of $7.0 million for the first quarter ended March 29, 2014.  Gross profit for the three months ended March 28, 2015, was $0.7 million compared to a gross profit of $2.0 million, for the first quarter ended March 29, 2014.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was a loss of ($5.3) million for the first quarter ended March 28, 2015, compared to an adjusted EBITDA loss of ($0.8) million for the prior year period.

Net loss for the first quarter ended March 28, 2015, was ($6.5) million, or ($0.14) loss per share, compared to a net loss in the prior year period of ($2.0) million, or ($0.05) loss per share.  These results include stock-based compensation expense of $0.5 million for the first quarters of 2015 and 2014.

As of March 28, 2015, cash and cash equivalents and restricted cash were $21.2 million, total assets were $25.5 million, working capital was $14.2 million, total debt, net of debt discounts, was $9.5 million, and stockholders' equity was $9.3 million.

C.K. Hong, Netlist's Chief Executive Officer, stated, "First quarter results reflect ongoing investments in R&D for HyperVault and the transition of our base products business to next generation technology, as well as legal expenses associated with current litigation. Notably, there were several positive developments during the quarter that will help to position the Company for profitable growth. Since its recent announcement, the EXPRESSvault3 (EV3) product line which accelerates Big Data applications has garnered significant interest from major customers. We anticipate this interest will be converted into commercial shipments in the second half of the year. We signed a Letter of Intent with a strategic partner, LG Electronics, to apply technology underlying HyperVault into an exciting new application – smart phones. Finally, we are attracting interest from potential strategic parties who recognize the value of Netlist's technology and intellectual property. We expect to see the benefits of these developments in the months and quarters ahead."