Netlist Inc. (NLST:OTCMKTS) announced in a press release that it increased its product sales by 100% in Q4 of 2023 compared to the previous quarter. The company mainly manufactures memory storage technology for computers and other devices, including servers and cloud technology.
Netlist's numbers seem to be very positive overall, as the company reports that the sales for the fourth quarter totaled CA$33.4 million, with a gross profit of CA$1.2 million.
CEO C.K. Hong commented on the company's performance, "Netlist delivered strong revenue gains in the fourth quarter and is well positioned for continued growth in 2024. We continue to make significant investments in protecting our intellectual property, which is increasingly being incorporated into memory products that power AI computing. We look forward to the trials in 2023 against Micron and Samsung."
Compared to the fourth quarter of 2022, the company's product sales increased by 54%. The company's gross profits for the full year reached CA$2.4 million, with net sales of CA$69.2 million.
Market to Grow by 7.3% Per Year
Markets and Markets estimates that the market size for memory and data storage technology was US$60.7 billion in 2023 and could, with an annual growth rate of 7.3%, reach US$86.2 billion in 2028. As data generation and smart technology become more integrated with daily life, the value of data storage technology is expected to grow.
Statista made similar predictions, expecting the market to be worth US$50.6 billion in 2024 and grow by 5.49% to US$62.6 billion in 2028. The report notes that the majority of this value will be generated within the United States and driven by the adoption of cloud technology and large-scale data storage.
Revenue Growth Expected to Continue
In a February 13 research note, Suji Desilva with Roth M.K.M rated the company as a "Buy" with a 12-month target price of CA$2.00. The report praised the company for its revenue growth, which outperformed previous expectations and is expected to continue.
Streetwise Ownership Overview*The company had a couple of external factors working in its favor, including a better memory market in Q4 and an expected conclusion of its breach of contract case with Samsung and Micron.
Ownership and Share Structure
Refinitiv provided a breakdown of the company's share and ownership structure, where management and insiders own approximately 1.89% of the company. According to Refinitiv, CEO Chun Ki Hong owns 1.88% of the company with 4.78 million shares, and CFO Gail M. Sasaki owns 0.01% of the company with 0.03 million shares.
Refinitiv reports that institutions in the form of Opus Capital Management, Inc. owns 0.01% of the company with 0.02 million shares.
According to Refinitiv, there are 253.54 million shares outstanding with 248.73 million free float traded shares, while the company has a market cap of CA$423.4 million and trades in the 52-week period between CA$1.02 and CA$6.10.
| Want to be the first to know about interesting Technology investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
