Netlist, Inc. (NLST) saw its loss widen to $3.34 million, or $0.05 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $1.41 million, or $0.03 a share.
Revenue during the quarter surged 104.91 percent to $9.43 million from $4.60 million in the previous year period. Gross margin for the quarter contracted 6781 basis points over the previous year period to 7.21 percent. Operating margin for the quarter stood at negative 33.91 percent as compared to a negative 27.89 percent for the previous year period.
Operating loss for the quarter was $3.20 million, compared with an operating loss of $1.28 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $2.86 million compared to negative $0.77 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 30.33 percent for the quarter compared to negative 16.76 percent in the last year period.
"We delivered an increase in first quarter revenue both consecutively and year over year. These results have been made possible through the strategic partnership with Samsung and the inclusion of their high-end memory and storage products to our offering," said C.K. Hong, Netlist's Chief Executive Officer. "We remain on track for initial customer sampling of HybriDIMM and continue to make progress with target customers for EV3 and NV4. We also are pleased with the recently announced transaction with TRGP Capital Management to fund the patent infringement litigation against SK hynix at the U.S. International Trade Commission (ITC) and in Federal District Court. The ITC trial concluded last week in Washington D.C. and a ruling is expected in early October from the Administrative Law Judge who presided over the proceeding."
Working capital declines
Netlist, Inc. has witnessed a decline in the working capital over the last year. It stood at $10.20 million as at Apr. 01, 2017, down 6.87 percent or $0.75 million from $10.95 million on Apr. 02, 2016. Current ratio was at 2.14 as on Apr. 01, 2017, down from 2.31 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 17 days for the quarter from 118 days for the last year period. Days sales outstanding went down to 9 days for the quarter compared with 12 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 129 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 259 for the same period last year.
Debt moves up
Netlist, Inc. has witnessed an increase in total debt over the last one year. It stood at $16.04 million as on Apr. 01, 2017, up 15.10 percent or $2.10 million from $13.93 million on Apr. 02, 2016. Total debt was 80.93 percent of total assets as on Apr. 01, 2017, compared with 70 percent on Apr. 02, 2016.
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