Netlist (NLST, Financial) reported a decrease in its first-quarter revenue, recording $29 million compared to $35.8 million during the same period last year. Despite the dip, the company's performance aligned with internal expectations. The broader memory sector is on the cusp of substantial expansion, driven by a shift towards HBM and DDR5 memory technologies in the AI space. Netlist is strategically positioned to leverage this growth through its ongoing product innovations and robust intellectual property assets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Netlist Inc (NLST, Financial) is $2.00 with a high estimate of $2.00 and a low estimate of $2.00. The average target implies an upside of 129.62% from the current price of $0.87. More detailed estimate data can be found on the Netlist Inc (NLST) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Netlist Inc's (NLST, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netlist Inc (NLST, Financial) in one year is $2.86, suggesting a upside of 228.36% from the current price of $0.871. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netlist Inc (NLST) Summary page.
NLST Key Business Developments
Release Date: March 27, 2025
- Revenue: $147.6 million for the year ended December 28, 2024, an increase of 113% compared to the previous year.
- Operating Expense: Declined 9.44% for the full year 2024, driven by reductions in IP legal fees and SG&A.
- Cash and Cash Equivalents: Ended 2024 with $34.6 million, compared to $29.8 million at the end of Q3 2024.
- Debt: Minimal debt reported.
- Cash Position Strengthening: Raised $15 million through a registered direct offering.
- Working Capital Line of Credit: $10 million with Silicon Valley Bank.
- Days in Inventory: Improved by 27 days over 2023.
- Days in Sales: Improved by seven days year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Netlist Inc (NLST, Financial) achieved a significant legal victory with a unanimous jury verdict confirming Samsung's breach of contract, reinforcing the value of Netlist's patents.
- The company reported strong revenue growth in 2024, more than doubling to $147 million, reflecting a recovery in the memory market.
- Netlist Inc (NLST) introduced new products, including the Lightning brand of ultra-low latency memory solutions and high-capacity MRDIMM products, positioning itself well in the AI memory market.
- The company has been investing in R&D in the CXL area for five years, showing tangible progress with proof of concept samples for enterprise and data center applications.
- Netlist Inc (NLST) strengthened its IP portfolio by increasing the number of patents by more than 10% in 2024 and made strategic hires to bolster its intellectual property strategy.
Negative Points
- The start of 2025 has seen short-term softness in the market, primarily driven by reduced consumer demand.
- Netlist Inc (NLST) expects first-quarter revenue to be moderately down from the fourth quarter of 2024 due to this short-term market softness.
- The company is still engaged in lengthy legal battles, including ongoing litigation with Samsung, which could continue to incur legal costs.
- Despite the legal victories, the appellate process for damages from Samsung is ongoing, with potential delays in collecting awarded damages.
- The new product lines, such as MRDIMM and CXL NV, have long qualification periods, delaying their contribution to revenue.
