Netlist Inc. (NLST), the provider of memory solutions for the cloud computing and storage markets with $15 million in debt financing from Fortress Investment Group, said today it expects to post a net loss of $5 million to $6 million in the quarter ended Dec. 27 on revenue of only $2.5 million.
The Irvine, Calif.-based company said the results are preliminary and still are subject to an audit. The preliminary numbers suggest Netlist had revenue of $19.15 million in 2014 versus $23.05 million in 2013 and a net loss of between $14.6 and $15.6 million, versus a net loss of $10.8 million, a year ago.
Netlist also announced a proposed underwritten public offering of its common stock, subject to market and other conditions. The terms of the offering and amount being raised was not disclosed.
Officials of Netlist couldn’t be reached for comment.
In addition, the company said it intends to grant the underwriter an option to purchase additional shares equal to up to 15% of the aggregate number of shares to be sold in the offering.
Netlist intends to use the net proceeds from the offering, if completed, for general corporate purposes.
Craig-Hallum Capital Group LLC is acting as sole underwriter for the offering.
The announcement of the offering comes a day after Netlist said it had amended a $15 million debt investment from a subsidiary of Fortress.
Netlist said the amended agreement accelerates the availability of financing and enhances Netlist's economics through a cap on the financing's total patent monetization share.
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