Finally some accountability!
Since Netlist actually develops and market competing products unlike a patent troll, they can have a more convincing argument related to #3.
Does anyone else suspect that this is Picken's way of telling his friends that they just dotted the i's and the crossed the t's for the Thermo iMS2 to start production / shipments?
They are forecasting Q4 2014 to be between $2.9mm to $3.3mm. That means another sequential improvement. They are sticking with the forecast of reaching profitability in second half of 2015 based on continued revenue growth and also higher margin due to more revenue coming from their core business which has higher margins.
It was also good to see that they made the backlog number public. $26mm+ backlog after already backing out the risky bookings is pretty impressive given their current annual revenue numbers.
In the previous call, the focus was just on their 1st hyperscale customer. In this call, they are now talking about multiple customers. Based on the info from the call, I am now expecting a consolidated PR announcing qualifications from MULTIPLE customers. Two of them will be well known hyperscale customers who are among the largest cloud operators in the world. There won't be PO associated with each customer qualification since they are in different stages of the sales cycle, but they could mention they have received the PO from at least the 1st hyperscale customer.
Their qualifications also includes multiple ODM customers, which means those qualifications will actually extend to multiple "brand names".
The main point here is that the negotiation is within Netlist's control. Meaning, FIG is NOT the one driving the discussion; Netlist is. Listen CC @24:43 Sounded more like it's up to Netlist whether they want let FIG in on the NVvault patents. Bottomline, Netlist is not desperate, they have other options. If revenue from hyperscale customerS in 2015 is high enough, they might not even need additional funding.
Steel bought another 66,000 shares @ $1.7841 on 11/03/2014 for a total of 7,817,907. I bet they loaded up today after the tree shaking this session. We'll know for sure within a week when they are likely to do another SEC filing.
be_accurate, to be fair, people were right to be concerned about them running out of cash at the rate they WERE burning cash. That was part of the risk with owning this stock and in a way they were right in that SMSI ultimately did raise more cash last quarter. In any case, it's all behind us now. The delisting talk was nonsense all along of course.
greedgonewild, I respect that. I also agree that SMSI's turnaround have not been smooth and it was reflected in the share price in the past. However, Q4 will be another cash flow positive quarter and even have the potential to be profitable. All this happened without depending too much on Netwise revenue. Any additional tier 1 customer would most likely result in consistent profitable quarters going forward.
be_accurate got you there! Your mistake of attributing the $1.1mm cash generation as being from a 2011 state of PA grant is definitely a much bigger error; I would even go as far as to say that is a critical error. The company's performance of being decisively cash flow positive with $1.1mm is a tremendous milestone even if it needed to right size a couple of times to do it. The biggest factor that drove the share price down was the continued cash burn. This has stopped in Q3 and Q4 revenue is forecasted to be higher than Q3.
You're hopeless trevor! As for reading comprehension, it seems like you can't even understand what you wrote yourself, so no chance you can understand anyone else.
You were saying that there's no reason to believe it's strategic or financing related. While 'strategic and financing' can be a few things, it also rules out a few things.
I am not telling you that YOU should believe Netlist will win. The long's here believe Netlist will win. The shorts believe Netlist will lose. No one knows who will win. It will be up to the judge and jury. YOU, if you call yourself a journalist, should be neutral. You should not be judge and jury, especially without access to all the info.
I sure did not tell you not to ask hard questions and be skeptical. I am asking in fact asking you to do more DD and be skeptical, but not just one sided! The Netlist CEO not talking to you does not mean you should trust Diablo's side more.
trevor: "...there's no reason whatsoever to believe Netlist's publicly stated"
No reason? Really? SEC filings mean nothing to you?
trevor, get over yourself! It's as if you feel offended that Netlist's CEO didn't want to talk to you. Do you really not know or understand that parties involved in lawsuits generally don't talk to the media unless they are desperate?
No trevor, I don't agree with cz that you are in bed with Bad Alone. For now, I just think you are terrible at your profession.
Btw, banks have to be careful who they do business with (partner with, trade with) because reputation is everything, so they also their DD on their potential partners. The point is, having IBM and Sandisk as partners does not prove Diablo didn't break their NDA with Netlist.
You have to be kidding about the following statements!:
"I agree entirely that Netlist *could* have some "trade secrets" in reserve that could trip up Diablo, but barring seeing evidence I have no reason to believe that this is the case. Why take Netlist's word over Diablo's in that regard? Thus, until evidence is presented, it cannot rationally be considered."
Evidence was clearly presented to the judge!!! I know common sense is becoming less common, but really?! Are you seriously suggesting that perhaps no evidence exists just because YOU having seen it? You can argue whether the evidence proves their case, but it's incompetent to suggest it might not exist. Even if you see the evidence, you are not responsible for judging whether it proves their case, even if you think you qualify to judge. In any case, YOU are not suppose to judge; you are suppose to just report what was presented or what wasn't, assuming you consider yourself a journalist.
Grow up trevor! Of course people with NLST positions are bias and will defend one side or the other. I'm a shareholder, of course I am bias. People are just wondering why you are.
Too bad people here won't learn the results of your team's "in depth study of all the comments around this case", unless you get fired of course.
trevor, do you also believe all the major banks that did business with Madoff "went over Madoff's balance sheets with "a fine-toothed" comb?
Netlist Trade Secrets are secret until Diablo disclosed them as theirs. How would IBM and SMART Storage (Sandisk) know that they were Netlist's trade secrets?! Seems like you don't like doing DD, but at least use some common sense!!!
As noted in my other post, go read Doc 183 if you haven't already. You don't even need a PACER account to access it. As for your comment, "But assertions is all they are. No evidence is offered." Of course evidence have been presented to the judge. Whether the evidence is successful in proving their assertions are up for debate and ultimately up to the judge and jury to decide. How about doing some DD. Don't let your ego make you believe that you should have access to everything the lawyers and the judge sees. Also, if I were the CEO of Netlist, I wouldn't even need my lawyer to tell me not to talk to you or comment on the case. Again, common sense.
Everyone here with a NLST position (long or short) is bias which is to be expected. However, are you suppose to be bias? If you still think your article and the subsequent comments are not bias, you need a reality check. Go ask someone you trust, someone who you know will give you an honest opinion.