Netlist, Inc. (NASDAQ:NLST) Moves Up Sharply
Netlist, Inc. (NASDAQ:NLST) stock popped at the markets today posting a 16.9 percent increase in the first two hours of trading on the back of robust 4Q results announcements on 3rd February. From its fourth quarter operations, it brought in revenue of $7.7 million which was significantly higher than the $6.0 million it had reported in 4Q12. Gross profit from the quarter operations has gone up by 9.1 percent to $1.9 million in comparison to $0.8 million in 4Q12 under the same header. Thanks to the increase in revenue, its diluted loss per share has come in at 43 cents. As of end of 2013, the firm boasted of a very encouraging debt to equity ratio of 0.6, which explains the huge rush of investors to buy the stock at the current levels.
Some of the low lights that came out form today’s call were pertaining to total accumulated loss from operations for the trailing 12 months, which stands at $13.27 million. This resulted in the profit margins for the quarter going down by 73 percent in comparison to 4Q12.
Transformation Afoot Into A IP Based Firm
Chun Hong , the Chairman of the Board, President, Chief Executive Officer and Co-Founder of Netlist, Inc. (NASDAQ:NLST) has been quoted to have said that, “We posted a significant improvement in year-over-year results, primarily due to sizable increases and 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 of our products and our IP.” He also highlighted that going forward, the memory chip maker will transform into an Intellectual property centric firm, as it slowly diversifies from its products only approach being followed today. At current elevated price points, the stock is trading 254 percent above its 52 week low price point.