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# Netlist Inc. Message Board

• kaibasl500 kaibasl500 Feb 8, 2013 5:07 PM Flag

## NLST CASH & O/S...

NLST issued 1.6 M shares in Dec.2012, with 2.2 M in Warrants, which take effect after 180 days at 0.89 cents.
Thus, total outstanding shares after factoring the above, will become 32.4 M shares outstanding.

Cash
10.4 M at the end of Sept. 28, 2012.
They are expected to have gross margins between 15 - 20 % in 4th quarter.
Hypothetical model:
Revenue \$6.1 M - \$5.2 M Cost of Goods .. Divided by \$6.1 M revenues = 15% Gross Margin.
NLST has reduced expenses and R&D, which they expect to be \$3.5 M going forward. I project it will stay around \$4.1 M. for the 4th quarter. \$0.9 M profit - \$4.1 M in expenses for 4th quarter = (\$3.2M) loss in the 4th quarter. The first 3 months of 2013, we assume expenses remain flat, instead of lower despite management projecting \$3.5 M. We also factor in that margins improve from 15 % to perhaps 18% for the 1st quarter.

Math:
\$10.4[cash 3rd quarter] - \$3.2 m [loss 4th quarter] + \$1.3 [profit from issuing outstanding shares] = \$8.5 M cash on hand DEC. 31, 2012.

Hypothetical Model:
Revenues of \$8 M for 1st quarter.
With 18 % Gross Margin, NLST Profit for 1st quarter would be \$1.5 M. Expenses remain at \$4 M.
Cash Burn for 1st quarter would be \$4 - 1.5 M = (\$2.5 M)

TOTAL CASH AT THE END OF MARCH 31, 2013 =
10.4 m - 3.2 m + 1.3 M - 2.5 m = \$6 M Cash.

NLST tends to hold on to news. When NLST reports numbers for 4th quarter, they will release news about 1 or 2 qualifications at that time. My biggest concern is what happen to HP qualification that was suppose to be announced at the end of Dec.

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