Netlist ( (NLST) ) has released its Q4 earnings. Here is a breakdown of the information Netlist presented to its investors.
Netlist, Inc. is a leading innovator in advanced memory and storage solutions, known for its foundational patented technologies that drive advancements in artificial intelligence and revolutionize computing. In its latest earnings report, Netlist reported a significant increase in net sales for the year 2024, reaching $147.1 million, which marks a 113% growth compared to the previous year. The company also highlighted its successful patent infringement trials against major industry players Micron and Samsung, resulting in substantial damages awarded.
Key financial metrics from the report indicate that while the company’s net sales saw a substantial increase, the gross profit for the full year only rose by 21% to $2.9 million. The fourth quarter of 2024 showed net sales of $34.3 million, slightly up from the previous year’s fourth quarter, but gross profit decreased to $0.3 million from $1.2 million. Despite the revenue growth, Netlist reported a net loss of $53.8 million for the year, an improvement from the $60.4 million loss in the prior year.
Netlist’s strategic focus on intellectual property enforcement has been a highlight, with the company securing $866 million in damages from patent infringement cases. However, the financial results reflect ongoing challenges, including a working capital deficit and a stockholders’ deficit. The company continues to invest in research and development, although expenses in this area have slightly decreased compared to the previous year.
Looking ahead, Netlist remains optimistic about its position in the expanding market for advanced memory solutions. The management’s outlook suggests a continued emphasis on leveraging its intellectual property portfolio and pursuing growth opportunities in the AI-driven computing sector.