Netlist Inc. (OTCMKTS: NLST) has announced its Q2 2021 financial results for the period ended July 3, 2021. The company reported revenue of $64.4 million comprising licensing fee revenue of $40 million and product revenue of $24.4 million which was up 123% QoQ and 64% simultaneously.
Netlist Reports Q2 2021 net income of $27.8 million
For Q2 2021, the company’s net income was $27.8 million or $0.13 per share relative to a net loss of $1.8 million or $0.01 per share a year ago. The earnings were impacted by stock-based compensation costs of $0.4 million during the quarter and $0.2 million for the quarter ending June 27, 2020.
At the end of the quarter, the company had $54.4 million in restricted cash, cash, and equivalents, total assets of $72.9 million, and working capital of around $35.2 million. Notably, accrued interest and total debt were $17.4 million, with shareholder equity being $35.9 million.
Netlist CEO C.K Hong said, “During the quarter, we delivered record financial results from strong product sales and the execution of a comprehensive licensing agreement with SK hynix. With this renewed momentum, we’re excited to ramp investments in strategic areas of the business while remaining focused on the intellectual property enforcement actions against infringing parties.”
Netlist entered an agreement with SK Hynix
The company announced an agreement with SK Hynix Inc. in April this year for a patent cross-license that covers memory technologies and a deal for SK Hynix products supply and technical collaboration on the CXL HybriDIMM technology of Netlist.
Hong said at the time, “We are delighted with the recognition of the value of Netlist’s intellectual property and very much look forward to partnering with SK hynix, a global leader in memory and storage technology.”
The agreements give SK Hynix access to Netlist’s patent portfolio in the United States and elsewhere. In addition, SK Hynix will pay Netlist a royalty and a cross-license to its patent portfolio.