In the News

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February 11, 2015

Needham & Company
NLST: Federal Appeals Court Stays Injunction Against SNDK (But Not Diablo) - Needham's Take

  • After the close, a ruling came down from the Federal Appeals Court regarding the preliminary injunction against SanDisk and Diablo vs. Netlist.
  • The Judge ruled that since SanDisk is a third party to the tradesecret lawsuit, that the Trial Judge erred in pulling them into the preliminary injunction. This is a technical legal issue (regarding injunctions and third parties) and not a factual one based on the merits of the case. The appeal by Diablo to lift the preliminary injunction was denied.
  • What Does This Mean? We do not believe that SanDisk has extensive amounts of inventory of the ULLtraDIMM (we have no way of knowing for sure), but they will be able to ship what modules they do have until the trial is completed. However, we would not expect there to be huge demand for a product that may not be able to be purchased again in 3-6 months (potentially at all).
  • For Diablo, we believe this means that they will not be able to supply chips to SanDisk (or anyone else) until resolution of the trial. So no change there.
  • For Netlist, we view this as a mixed result. While Diablo still can't ship, the distancing of SanDisk (even just slightly) does put a check in the SanDisk column for negotiating position with Netlist, but in our view does not change their long-term ability to ship ULLtraDIMM if Diablo loses.
  • Bottom line, a mixed result that doesn't impact our view that a settlement is likely. The next upcoming dates worth noting are:
    1. February 12th: meeting with both sides and the Magistrate to discuss if a settlement has been reached
    2. even if the settlement discussions are progressing, the pretrial conference would be held on February 13th
    3. March 2nd: Jury selection begins, and
    4. March 9th: the trial would begin
  • We believe a settlement could occur at any point along this timeline.
  • We maintain our Buy and $3.00 price target (see attached note
[For note, please see below]

 

February 6, 2015

Needham & Company
Analyzing Potential Settlement As Talks Ordered. Reiterate Buy, Raising PT.

INVESTMENT HIGHLIGHTS: We believe that a settlement of some kind is increasingly likely in the NLST/Diablo/SanDisk saga, with the Court ordering a meeting of the warring parties (standard procedure) and denial of another motion by Diablo to expedite the appeal of the preliminary injunction announced last night. Although without guidance from management, we have analyzed a number of scenarios given potential adoption rates for this important new technology, and now assign a price target of $3 up from our initial view of $1.50. We reiterate our Buy rating. **Corrected note. Supersedes all previous versions.** [Read More]

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January 13, 2015

PCWorld
Temporary sales ban hits SanDisk's SSD server business

If you’re looking to buy solid state drives (SSDs) from SanDisk to speed up your servers, you might be out of luck. A California court has issued a preliminary sales ban for controller chips that SanDisk uses in its high-speed SSDs. [Read More]

 

January 13, 2015

Law360
Diablo Can't Halt Chip Sale Ban As Rival's IP Trial Looms

Law360, San Francisco (January 13, 2015, 8:34 PM ET) -- A California federal judge Tuesday refused to halt her injunction blocking the sale of chips used by SanDisk Corp. and IBM Corp. while chipmaker Diablo Technologies Inc. appeals the ban, and laid the groundwork for a March 9 trial in Netlist Inc.'s contract and trade secrets suit against rival Diablo. [Read More]

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January 13, 2015

The Register
SanDisk's flash chip nightmare: How I'd escape black hole if I was in charge

Apparently let down by a component supplier allegedly shipping technology it has no rights to, SanDisk now finds itself facing a FlashDIMM sales shutdown – just as the server world realizes that DIMM flash is much faster to access than PCIe flash and wants more of it. [Read More]

 

January 13, 2015

Law360
Injunction Issued On Chips For SanDisk, IBM Memory Products

Law360, Los Angeles (January 12, 2015, 11:14 PM ET) -- A California federal judge on Monday granted a preliminary injunction that will block the sale of chips used in data storage products from SanDisk Corp., IBM Corp. and others, finding that Netlist Inc. presented convincing evidence a rival chipmaker had breached contracts and stolen its trade secrets. [Read More]

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January 12, 2015

Wall Street Journal
Court Order Bars Sales of Some Chips Used by SanDisk, IBM

A federal judge issued a preliminary injunction against a Canadian company barring sales of chips used in a new variety of data storage products sold by SanDisk Corp. and International Business Machines Corp. [Read More]

 

January 7, 2015

Needham & Company
Netlist Note from Analyst, Richard Kugele

*** Follow Up On NLST News ***

  • This morning, Diablo Technologies (technology partner to SanDisk on the ULLtraDIMM) issued a press release indicating that the US Patent Office granted them a review of certain patents tied to NetList’s memory channel storage technology IP (specifically 7,881,150 B2 and 8,081,536 B1).
  • The Inter Partes Review process (or IPR) can take 6-12 months. On other patents NLST has gone through this review process before, with most of them being upheld. IF they are not upheld, the patents in question would be invalidated and the impact at that time would need to be determined.
  • We believe it is very difficult to get patents invalidated, and put a low probability on this succeeding.
  • In the interim, it is our belief that this patent review will NOT impact the preliminary injunction that has been put into place as that case was tied to the contract dispute and trade secrets.
  • We will follow up with any details as they become available.

Link to most recent NLST note.

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January 7, 2015

Needham & Company
Netlist, Inc. Appears To Have Won Preliminary Injunction On ULLtraDIMM - Upgrade To Buy

INVESTMENT HIGHLIGHTS: We believe that if we are correct (based on recent court documents) that NLST has likely won a preliminary injunction over SNDK, then the court believes that NLST stands a very high likelihood of prevailing in the upcoming contract and trade secret case. It is our belief that this could bring SNDK to the negotiating table rather than face the potential of losing at the trial. Consequently, we assume that a $25-50M settlement (at the low-end) could effectively double the market cap of NLST and therefore we upgrade to Buy. [Read More]


 

January 7, 2015

Craig-Hallum
Netlist’s Preliminary Injunction Motion Partially Granted. We Believe This Is Very Favorable Ruling That Provides Strong Confirmation Of The Company’s Technology And Could Drive Settlement Discussions. Reiterating Buy Rating And $2 Price Target.

Yesterday, the District Court of California granted Netlist’s request for preliminary injunction in part. While the full public order is not yet available, we believe it affords Netlist relief by preventing Diablo Technologies from shipping its chipset related to SanDisk’s UlltraDIMM product. We believe this is the result that Netlist was aiming for, as it strongly suggests that Diablo misappropriated Netlist’s key technology used in its NVDIMM products. We would not be surprised if this injunction initiated settlement discussions that could lead to a licensing arrangement in the near term, as the UlltraDIMM product was a key part of SanDisk’s growth strategy for 2015 and beyond. NLST’s stock was up 15% yesterday after the news, but we believe that amount underrepresents the true potential from the Diablo/SanDisk case, much less the entire NVDIMM marketplace or the balance sheet relief such a settlement could bring. We reiterate our Buy rating on shares of Netlist. [Read More]

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January 7, 2015

TweakTown
NVDIMM SIG representatives discuss the future of NVDIMM technology

Storage Visions 2015 -Arthur Sainio from Smart Modular Technologies and Richard Martinez from Netlist stopped by the TweakTown booth to discuss emerging NVDIMM technologies. SNIA's NVDIMM Special Interest Group (NVDIMM SIG) works hand in hand with JEDEC, who develops the NVDIMM Specification, to promote the new technology. [Read More]


 

August 3, 2012

AnandTech
LRDIMMs, RDIMMs, and Supermicro's Latest Twin

The advantage of HCDIMMs is that HCDIMMs run one speed bump faster than LRDIMMs. So while LRDIMMs have to throttle back to 1066MHz at 3 DPC, HCDIMMs run at 1333MHz. According to a Netlist sponsored report, HCDIMMs offer about 17% higher bandwidth, which sounds reasonable to us. Secondly, the distributed buffer architecture is the same architecture that DDR4 is converging on. [Read More]

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August 2, 2012

EE Times
Netlist claims to accelerate EDA applications by 8%

A memory company says: we can make EDA applications run faster. That is the claim for a press release and white paper that I was sent the other day, so I wanted to find out what this was all about. They start to present the facts such as processor speeds growing at 60% per year, with hard drive capacities keeping pace but memory performance only growing at 9% per year. The number of cores increasing etc. As a reference they turn to DDR3 which they say can transfer up to 10.6 GB of data per second [Read More].

More Coverage

Seeking Alpha, Third Party Benchmark Test Shows 54% Improvement In Netlist, Inc. (NLST) HyperCloud Modules

EDA Geek, “Netlist HyperCloud HCDIMM Memory Modules Offer 54% Improvement

HPC Wire, Netlist Benchmarks New Memory Modules

TMCNet, Netlist HyperCloud Clears Third Party Benchmark Test


 

March 19, 2012

Orange County Business Journal
Intel Ripple Effect: New OC Patents

HyperCloud
Netlist’s HyperCloud product, which handles large memory capacity, is billed as improving performance by 25% compared to the industry standard. Hong likened the product to expanding a highway from two to four lanes and said it allows data to flow back and forth quickly. [Read More]

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November 30, 2011

The Register
Netlist puffs HyperCloud DDR3 memory to 32GB

Boutique server memory maker Netlist has embiggened its HyperCloud DDR3 memory sticks to 32GB, ganging up cheap and low-capacity DDR3 memory chips with a register and virtual memory controller that allows the HyperCloud memory to break out of server memory constraints and do so with cheaper chips. [Read More]


 

October 11, 2010

InformationWeek Hardware
Interop In Advance: HyperCloud Claims To Overcome Server's Natural RAM Limits

Interop NYC 2010 (Oct 18-22) begins one week from today and in this final stretch before the show, InformationWeek will be posting highlights for attendees to watch for (it's not too late to register). One of those highlights will be server RAM from a company called Netlist. But it's not just any RAM. Netlist claims that this memory -- called "Hypercloud" -- is uniquely qualified to address the needs of cloud computing and datacenter consolidation (particularly where virtualization is in play). [Read More]

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May 28, 2010

TMC
Netlist Delivers Memory Power at Interop: Video

TMCnet had the opportunity to speak with a number of key industry players at Interop this year, including Netlist. Christopher Lopes Co-Founder Netlist visited the TMCnet media booth for an interview captured in this video. [Read More]

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November 11, 2009

The Register
Netlist goes virtual and dense with server memory

Netlist, a publicly traded company based in Irvine, California that was founded in 2000 and that you have probably never heard of, will probably make a big splash at the SC09 supercomputing trade show next week. Netlist, which makes memory modules on an OEM basis for various companies, said Wednesday that in December it will roll out a virtualized, dense memory DDR3 module that will be able to trick servers into having more main memory than they are supposed to. [Read More]

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