Netlist Q3 revenue jumps 149% on Samsung license fees

Overview

• US memory and storage supplier's Q3 revenue rose 149% yr/yr, driven by Samsung license fees

• Gross margin improved to 65.5% from 4.4% on license revenue and higher product margins

• Net income swung to profit from loss a year earlier

Outlook

• Company expects license revenue under Samsung and Micron agreements to continue

Result Drivers

• SAMSUNG LICENSE FEES - Co recognized $44.9 mln in license revenue from Samsung agreement in Q3

• AI AND DATA CENTER DEMAND - Product revenue growth attributed to strong demand from AI and data center customers, per CEO

• HIGHER MARGIN FOCUS - Gross margin improvement attributed to license revenue and focus on higher margin opportunities, per CFO

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for Netlist Inc is $15.00, about 139.6% above its November 9 closing price of $6.26

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• Nov 9 - Quantum Q2 revenue beats estimates on strong storage demand, record backlog

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• Nov 10 - CoreWeave beats quarterly revenue estimates as AI demand defies growing doubts

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)