Netlist, Inc. (PNK:NLST) Q1 2024 Earnings Call Transcript

Suji Desilva: I appreciate the insight on the challenges you have there, and I think you’ve made it relatively clear what’s going on. Switching over to the product side, the memory market improving, I guess, pricing firming. Can you just talk about the puts and takes in that, I guess, the demand would drive the pricing up, but maybe supply hasn’t been expanded and how that affects your opportunity for resale and new product opportunity in the next few quarters?

C.K. Hong: Yes, Suji. The market has certainly become better. I mean it’s not any kind of a significant shortage as of yet. But just in general, compared to last year, things are improving, and you see that from the results from big suppliers like Hynix recently and Micron. So I think both DRAM and NAND will continue to — the price will appreciate. And the demand is remaining relatively strong, and that will continue out through the rest of this year. And we’re seeing good demand from our customers as well. So we believe that things will improve our results. Certainly, the top line will continue to incrementally improve for the second half of this year. The bottom line, obviously, are going to depend on — we’re still spending quite a bit on the legal front with the two trials coming up in May.

And then we continue to invest significantly in the CXL development, which is really is going to be the market for the second half of this decade. We manage the investments as closely as possible and tightly as possible. But these are investments that we need to make as a business given that we must monetize the assets that we have here.

Suji Desilva: Okay, all right. Thanks, Chuck.

C.K. Hong: Thank you.

Gail Sasaki: Thanks, Suji.

Operator: And ladies and gentlemen, with that, we’ll be ending today’s question-and-answer session as well as today’s conference call and presentation. We do thank everyone for joining. You may now disconnect your lines.