Netlist Inc. (NLST), the patent monetization company run by CEO C.K. Hong, posted a much wider net loss of $6.46 million in the first quarter on higher litigation expenses.
The company’s net loss of 14 cents a share compared wit5h a net loss of $2.02 million or 5 cents a share a year ago.
The company’s net sales plummeted to $2.1 million from $7 million, which the company attributed to the transition from its base memory solution products to the next generation technology.
The company said its intellectual property legal expenses more than tripled to $3.5 million from $1.1 million .
Selling, general and administrative costs were $1.76 million versus $1.61 million. Research and development also increased to $1.38 million from $878,000.
Shares of Netlist gained 3.77 cents, or 6.8%, to 59 cents today in trading. They’ve traded between 50 cents and $2.09 over the past year.
"First quarter results reflect ongoing investments in R&D for HyperVault and the transition of our base products business to next generation technology, as well as legal expenses associated with current litigation,” Hong said in a statement.
Hong said the company’s EXPRESSvault3 (EV3) product line which accelerates Big Data applications has garnered significant interest from major customers and should begin to produce revenue in the near future.
“We anticipate this interest will be converted into commercial shipments in the second half of the year.”
Hong also noted that the company signed a letter of intent with LG Electronics to apply technology underlying its HyperVault product into smart phones.
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