MOBL needs $62M revenue with their 82% margins to cover current R&D and SG&A spending, they have yet to show any sustained revenue growth, hovering around the $33-$43M range for several quarters now. From Q1 2015, revs were $33, 34, 38, 43, 38 Losing $80M + the past two years and starting out with a $20M loss in Q1. Their CC was tepid for Q2, yet they did guide cash flow positive by Q4, not sure how they do that without cutting spending.
"Netlist and Samsung have committed to a five-year collaboration to develop and commercialize this technology. The initial phase is on track to be completed by the end of the second quarter, culminating in a private demonstration for Samsung only of the industry's first unified memory-storage product."
Just checking out MOBL, gapped down on Q1 earnings loss of almost $20M. Is there any sign that they can cut back on R&D and SG&A? They are going to run out of cash fast losing $20M per quarter.
MOBL gets good margins, but the Q1 2016 R&D $16,927 and Selling General and Administrative $33,216 is really keeping them in the cash burn mode. People here complain about WYY not generating cash, when does MOBL start. They lost $85M in 2015. Their cash would pretty much run out by Dec 2016.
How did the market respond? Price continued going up from $25 to $35... It is not a big deal. S-8 filings are commonplace and pretty much every company has them.
greenb23, the point is, this practice is well known and accepted. It is commonplace, the market is well aware of such arrangements. This isn't a SURPRISE announcement, like raising cash through selling shares would be. Since it is a KNOWN and has been known practice since 2006, it is priced in.
Don't humor them db_ill_investr, this same S-8 filing was filed in 2014, 2012, etc. It is the employee incentive plan dating back to 2006. These are very common in all companies, options awards or bonus to recruit new employees etc. Don't read into it or dwell on it, just more FUD from people wanting cheaper shares.
green, S-8 filings are commonplace, IPHI also files them. Netlist has had them since their 2006 incentive plan, at first yearly, then bi-annually. The market is aware of these, this isn't a surprise.
Was an educational presentation, to really demonstrate the need for each of their products and just where they will benefit over legacy tech. One point Chuck stressed was they are really working hard at negotiating a licensing deal that will be a platform for them for years to come. I wish someone could've asked him if it was a "JEDEC negotiating" that should have taken place long ago, if it weren't for the disputed patents.
There is nothing nefarious about the Samsung loan. It is as easy a loan as you can ever hope to get. The bashers can't use this loan the way they tried to use the Fortress loan that WAS linked to IP. You know, Fortress was going to bankrupt Netlist to steal the IP, the typical nonsense that was thrown against the wall hoping it would strike fear into investors.
The loan from Fortress was tied to the IP, and required payments. The Samsung loan is not linked. It is up to Netlist to decide if they want to buy out the loan or let it issue to shares of the company, SIX YEARS FROM NOW.
Typically, if you get notice of the proxy vote, via e-mail or regular mail, and you fill out your vote early, you won't get a call. If you wait a week or two, then you might get a call from Compushare. They handle this process for many companies.
I agree, Samsung made the offer after the '537 patent was cemented. Samsung was selling IPHI infringing memory sticks, LRDIMMS. They gave Netlist a source of cheap supplies, a sweetheart loan, the ability to pay off Fortress, and cross-licensing and $8M in milestone cash. That was pretty much a settlement without calling it a settlement.
Well said stockyetti, I have bought some higher than current PPS, but I will trade some. Of course, I have averaged down greatly, too. That is how you should approach investing. Being flexible.