Netlist stock down on lower Q1 & Q2 guidance

Netlist Inc. (Nasdaq: NLST) issued lower-than-expected guidance for its first and second quarters.

The Irvine, Calif.-based memory subsystems manufacturer said it now expects to report earnings per share of $0.02 to $0.03 per share on revenue of $37 million to $38 million. The firm had previously issued guidance of $0.07 to $0.08 per share on revenue of $40 million to $42 million.
 
Three analysts polled by Thomson First Call were expecting earnings per share of $0.08 on revenue of $41.2 million for the quarter ended March 31. Netlist CEO Chuck Hong cited operating expenses and decreased customer demand for the revised guidance.

Looking ahead, Netlist also estimated that it would report earnings per share of $0.02 per share on revenue in the range of $34 million to $36 million for the second quarter. The company cited continued softness in the DRAM (a type of memory) market, ramp up costs related to its new manufacturing facility in China and continued incremental investment in sales, marketing and R&D for the expected performance. Analysts were expecting earnings per share of $0.09 on revenue of $41.3 million for the quarter ended June 30.

Shares of Netlist Inc. (Nasdaq: NLST) fell by $0.97, or 16.25%, to $5.00 in after-hours trading Monday on the announcement. Nearly 180,000 shares had changed hands, compared with the company’s three-month average of 124,856.

Netlist’s stock hit a new 52-week-low of $5.86 on April 13 – less than half of its 52-week-high of $12.64 on Jan 17.