OTCMKTS:NLST Netlist Q4 2023 Earnings Report $0.89 +0.02 (+2.30%) As of 05/2/2025 03:59 PM Eastern Earnings HistoryForecast Netlist EPS ResultsActual EPS-$0.05Consensus EPS -$0.07Beat/MissBeat by +$0.02One Year Ago EPSN/ANetlist Revenue ResultsActual Revenue$33.43 millionExpected Revenue$22.00 millionBeat/MissBeat by +$11.43 millionYoY Revenue GrowthN/ANetlist Announcement DetailsQuarterQ4 2023Date2/13/2024TimeN/AConference Call DateTuesday, February 13, 2024Conference Call Time12:00PM ETUpcoming EarningsNetlist's Q1 2025 earnings is scheduled for Tuesday, May 6, 2025, with a conference call scheduled at 12:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfilePowered by Netlist Q4 2023 Earnings Call TranscriptProvided by QuartrFebruary 13, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Good day, And welcome to the Netlist 4th Quarter 2023 Earnings Conference Call and Webcast. All participants will be in listen only mode. Please note, today's event is being recorded. I would now like to turn the conference over to Mike Smargiassi of The Plunkett Group. Please go ahead. Speaker 100:00:29Thank you, Rocco, and good day, everyone. Welcome to Netlist's 4th quarter 2023 conference call. Leading today's call will be Chuck Hong, Chief Executive Officer of Netlist and Gail Sasaki, Chief Financial Officer. As a reminder, you can access the earnings release and a replay of today's call on the Investors section of the Netlist website at netlist.com. Before we start the call, I would note that today's presentation of Netlist's results and the answers to questions may include forward looking statements, which are based on current expectations. Speaker 100:01:04The actual results could differ materially from those projected in the forward looking statements Because of the number of risks and uncertainties that are expressed in the call, annual and current SEC filings and the cautionary statements contained in today's press release. Netlist assumes no obligation to update forward looking statements. I will now turn the call over to Chuck. Speaker 200:01:29Thanks, Mike, and hello, everyone. We saw a promising uptick in the 4th quarter as product revenue improved to $33,000,000 an increase of 100% on a sequential basis and a 54% increase over Q4 2020. The memory market continues to rebound and Netlist is benefiting from the improved demand environment. Pricing has strengthened for DRAM and NAND products, including SSDs with price increases of more than 100% since the fall of 2023 for some products. These market dynamics are continuing into this year and we expect to see further gains in product revenue throughout 2024. Speaker 200:02:16Fueling this growth is the normalization of customer inventory and the industry's transitions to advanced technologies, which is driving a new server demand cycle. This includes volume production of DDR5 memory based platforms and the need for high bandwidth memory or HBM to power the explosive rise in AI applications. These trends are fundamentally transforming the memory landscape, setting the stage for a new cycle of growth and presenting Netlist with major opportunities from both the product an IP standpoint. As you know, Netlist has been at the forefront of the industry developing next generation memory technology and backing its innovations with a strong patent portfolio. This approach is complemented by the strategic supply agreement with SK Hynix, which enables us to meet growing customer demand. Speaker 200:03:07Together these product and licensing strategies put Netlist in a strong position to continue to benefit from the memory market turnaround. On the legal front, Netlist made significant progress in 2020 3, on his efforts to defend and fairly license its intellectual property, including the Eastern District of Texas Jury Award of $303,000,000 in the case against Samsung, favorable rulings from German courts and cases against Samsung and some mixed results at the PTAB. 2024 is set to be another active year with what we will be multiple patent infringement jury trials. The case in the Eastern District of Texas before Chief Judge Gilstrap Addresses Micron's infringement through the sale of its DDR5 DIMMs and HBM components. Some of the same patents and product types that were at issue in our successful April edtx trial against Samsung. Speaker 200:04:12Heading into this trial, We received a favorable claim construction order that provides a strong foundation for Netlist's ability to prove infringement and validity against Micron. This case was reassigned from its original January start date and Judge Gilstrap recently issued a limited stay Citing his limited judicial resources pending the IPR results of Netlist's 60 and 160 patents. We expect the decision from the PTAB on those IPRs by or before April 12. Our team is ready and we look forward to presenting our infringement case to a jury. Netlist expects 2 additional Eastern District of Texas jury trials later this year. Speaker 200:05:06The second set of EDTX jury trials involve Netlist's consolidated case against Samsung and Micron under our 912 patent and multiple LRDIMM patents. This consolidated case continues to move forward With a pretrial conference set for March 11 and a jury trial start date currently set for April 15, 2024. This consolidated case involves the infringement of large volumes and significant dollars worth of DDR4 RDIMMs and LRDIMMs. The case is progressing despite Samsung and Micron's renewed efforts to delay the proceedings with new stay motions. Metlis' team secured favorable claim constructions at the end of last year, in this case, winning arguments for almost every term in dispute. Speaker 200:06:00While the case is currently consolidated and set for a joint trial on April 15, We expect the court to separate it into 2 cases that will each go to trial sometime in 2024. Netlist's 3rd case against Micron in the Western District of Texas was reassigned to the General Austin, Texas Judicial Docket Number 2, last year, upon the retirement of Judge Aykel, it is not currently set for trial, But Judge Robert Pittman recently requested parties to provide a status update by February 21, Where we plan to highlight the fact that 2 of our asserted patents there were found patentable by the Patent Trial and Appeals Board. As a reminder, this case involves netlist patents covering Micron's DDR4 LRDIMMs and was filed in 2021. Regarding the Samsung California contract breach case, this case was remanded to the U. S. Speaker 200:07:03District Court of the Central District of California following the split decision split ruling by the U. S. Court of Appeals. Central District Court Judge Mark Scarsi directed both parties to submit additional briefing in light of the 9th Circuit remand and held a summary judgment hearing on February 5. At the hearing, Judge Scorsese set the matter for a fast jury trial date of March 26. Speaker 200:07:35As I've mentioned before, we haven't yet been able to fully bring all of the Samsung's past actions to light before a jury. So we are eager to be able to do so in this upcoming trial next month. Turning to Netlist's April trial next month. Turning to Netlist's April 23 win against Samsung in the Eastern District Texas post judgment issues have been fully briefed by the parties and we are waiting for Judge Gilstrap to issue his final order. As noted previously, our jury verdict confirmed Samsung's willful infringement and set an implied royalty rate. Speaker 200:08:15Beyond the accrual of interest on our judgment, we hope to see a favorable outcome from the court On our motion for an ongoing royalty, which would confirm that Samsung's ongoing infringement would be automatically subject to the defined per unit rate we obtained at trial. Related to this case, We have filed requests for rehearing before the PTAB on the results of the inter party's review of Netlist 3,39, 918-fifty four patents that read on LRDIMM and DDR5 power management. These three patents were asserted as part of Netlist's April 2023 jury trial against Samsung. Netlist awaits reconsideration of these decisions And if denied, we'll have the option to file a notice of appeal within 63 days. Netlist's action in Germany against Samsung, Micron and Google continue to move forward. Speaker 200:09:16The German Federal Patent Court is expected to hold oral hearings on the validity of Netlist's asserted European patents in March 2024 for EP-seven thirty five and in July 2024 for EP-six sixty. As a reminder, Netlist needs a favorable ruling on only one of these patents to move forward with its request for an injunction before the German Dusseldorf Court. Looking ahead to 2024, we see a memory market that is going to have an year, driven by growth in demand and a strong pricing environment. The transition to new DDR 5 based servers and high bandwidth memory for AI are creating a huge demand for products that require Netlist's technology. These market dynamics highlight the key role of Netlist's technology and that it will play in the future of the memory industry and underscore the importance of remaining vigilant and enforcing our IP rights. Speaker 200:10:24Now I will turn the call over to Gail for the financial review. Speaker 300:10:31Thanks, Chuck. For the 12 months ended December 30, 2023, total product revenues were $69,200,000 compared to $161,600,000 for the full year ended December 31, 2022. These comparative results reflected the industry downturn in demand for memory during the 1st several quarters of 2023, combined with the oversupply in the market during most of the year. As noted by Chuck, we saw a strong uptick during the 4th quarter of 2023, where we generated close to 50% of our total 2023 revenue, highlighting the rapid improvement taking place in the market. Year over year, Q4 product revenue increased by 54% with 100% increase consecutively. Speaker 300:11:25We do not formally guide, but given booking and shipping for the Q1 of 2024 to date, plus the industry outlook for continued growth in both memory demand and pricing, We currently expect another moderate increase in product revenue for the Q1 compared to the Q4. The full year of 2023 increase in operating expense compared to 2022 was driven mainly by legal expenses due to a more active legal trial calendar in 2023 and also in preparation for 2024. This was partially offset by cost savings as we rightsize sales and marketing given the market downturn in the late in late 2022 through the first half of twenty twenty three. With multiple upcoming trials currently scheduled, We expect investment in these active campaigns to remain elevated during the first half of twenty twenty four and then moderate as we move through the rest of the year. We also expect to expand the sales and marketing team to meet the growth and demand. Speaker 300:12:41We ended 2023 with cash and cash equivalents on restricted cash of close to $53,000,000 compared to approximately $51,000,000 at the end of the prior quarter and approximately $44,000,000 at the end of 2022. In addition, with a $10,000,000 working capital line of credit With Silicon Valley Bank and approximately $34,000,000 available on the equity line of credit through Lincoln Park Capital, We continue to maintain significant financial flexibility and liquidity going forward. As always, We managed the operational cash cycle very carefully, which improved by 25 days in Q4 'twenty three compared to last year's Q4. Operator, we are now ready for questions. Operator00:13:31Thank you. We have a question from Suji Desilva with ROTH Capital. Please go ahead. Speaker 400:13:37Hi, Chuck. Hi, Gail. Congrats on the recovery here. Maybe you can talk about the revenue framework more broadly as we look at 2024. Your recovery here implies kind of $120,000,000 revenue run rate. Speaker 400:13:49In the past, you've done sort of $140,000,000 to $160,000,000 So I'm just trying to understand how to think about the recovery shape here relative to historical revenue levels? Speaker 300:14:00Hey, Suji. Yes, I mean, as we've noted and The analysts have said that 2024 will be a revenue positive year and we expect to be in line with that. But I think due to the lack of our own visibility, we'll take it quarter by quarter. We'll continue to soft guide in that way. But we are positive. Speaker 400:14:25Okay. And I appreciate that Gail. Understand it's a recovering environment. And then more specifically perhaps for Chuck, 24, these AI platforms as they come online, what are the upside opportunities for Netlist in terms of products, The timing of that, just to understand how that can flow to your opportunity here? Speaker 200:14:45Yes, Suji. So I think The AI platforms are as a percentage of overall servers that are installed is increasing. It's probably in the teens to 20% penetration rate. Most of those systems require higher speed DDR5, virtually all require DDR5 and that We have DDR5 products such as the DDR5 VLP, MRDIMMs and other higher capacity at the very high end of the product line, We offer those that are not offered by the major DRAM manufacturers. So I think we'll see good opportunities in that high end. Speaker 200:15:41In general, I think SSB demand We'll continue to grow and our high end SSD product lines 32 terabytes and above, I think that They will benefit that demand increase will benefit that part of our business as Speaker 400:16:02well. Okay. Great. And then my last question, Chuck and Dale, is thanks for all the litigation detail in the prepared remarks. Which of the top 3 sort of Next dates or sort of events or milestones that you think are most important for Netlist, should we watch for out of all the things that are happening? Speaker 100:16:22Yes. Speaker 200:16:26We've have in the coming 3 months, 3 to 4 months, we've got a number of trials. Obviously, we've prepared for the last couple of years, invested in these cases and the trial is a culmination of that investment. The first trial that was set out for January, unfortunately, that was postponed by Judge Gilstrap due to resource issues and that so that is pending the outcome of HBM's IPR results of the HBM final IPR, final written decision. So we hope to have that trial upon those results coming out. We've got a trial set for, as I said, March 26, against Samsung. Speaker 200:17:29That is a major trial on breach of contract. And then there are Two trials in a combined case against Samsung and Micron that are currently set for April 15. And those are Again, for past damages for RDIMMs and LRDIMMs that are of significant dollar exposure to both of those companies, Those will likely be separated out into 2 separate trials, sometime 2nd quarter or mid-twenty 24. So we're very busy preparing for these trials and we're working hard to win those trials and prove infringement and validity of these patents. Speaker 400:18:30Okay, I'll check. Thanks, Gail. Speaker 300:18:33All right. Thanks, Suji. Operator00:18:34Thank you. And this concludes today's conference call. We thank you all for attending today's presentation.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallNetlist Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Annual report(10-K) Netlist Earnings HeadlinesNetlist, Inc. (PNK:NLST) Q4 2024 Earnings Call TranscriptMarch 29, 2025 | insidermonkey.comNetlist reports Q4 EPS (5c) vs. (5c) last yearMarch 28, 2025 | markets.businessinsider.comThink NVDA’s run was epic? You ain’t seen nothin’ yetAsk most investors and they’ll probably tell you Nvidia is the undisputed AI stock of the decade. In 2023, it surged 239%. And in 2024, it soared another 171% on the year… But what if I told you there was a way to target those types of “peak Nvidia” profit opportunities in 24 hours or less?May 3, 2025 | Timothy Sykes (Ad)Netlist, Inc. (NLST) Q4 2024 Earnings Call TranscriptMarch 27, 2025 | seekingalpha.comNetlist, Inc.: Netlist Reports Full Year and Fourth Quarter 2024 ResultsMarch 27, 2025 | finanznachrichten.deNetlist (NLST) Gets a Buy from Roth MKMMarch 26, 2025 | markets.businessinsider.comSee More Netlist Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Netlist? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Netlist and other key companies, straight to your email. Email Address About NetlistNetlist (OTCMKTS:NLST) designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. The company portfolio of proprietary technologies and design techniques, includes efficient planar design, alternative packaging techniques, and custom semiconductor logic, to deliver memory subsystems; and sells specialty memory modules and flash-based products for use in data center and industrial applications. It resells component products, including solid state drive (SSD), NAND flash, and dual inline memory module (DIMM) to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. 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There are 5 speakers on the call. Operator00:00:00Good day, And welcome to the Netlist 4th Quarter 2023 Earnings Conference Call and Webcast. All participants will be in listen only mode. Please note, today's event is being recorded. I would now like to turn the conference over to Mike Smargiassi of The Plunkett Group. Please go ahead. Speaker 100:00:29Thank you, Rocco, and good day, everyone. Welcome to Netlist's 4th quarter 2023 conference call. Leading today's call will be Chuck Hong, Chief Executive Officer of Netlist and Gail Sasaki, Chief Financial Officer. As a reminder, you can access the earnings release and a replay of today's call on the Investors section of the Netlist website at netlist.com. Before we start the call, I would note that today's presentation of Netlist's results and the answers to questions may include forward looking statements, which are based on current expectations. Speaker 100:01:04The actual results could differ materially from those projected in the forward looking statements Because of the number of risks and uncertainties that are expressed in the call, annual and current SEC filings and the cautionary statements contained in today's press release. Netlist assumes no obligation to update forward looking statements. I will now turn the call over to Chuck. Speaker 200:01:29Thanks, Mike, and hello, everyone. We saw a promising uptick in the 4th quarter as product revenue improved to $33,000,000 an increase of 100% on a sequential basis and a 54% increase over Q4 2020. The memory market continues to rebound and Netlist is benefiting from the improved demand environment. Pricing has strengthened for DRAM and NAND products, including SSDs with price increases of more than 100% since the fall of 2023 for some products. These market dynamics are continuing into this year and we expect to see further gains in product revenue throughout 2024. Speaker 200:02:16Fueling this growth is the normalization of customer inventory and the industry's transitions to advanced technologies, which is driving a new server demand cycle. This includes volume production of DDR5 memory based platforms and the need for high bandwidth memory or HBM to power the explosive rise in AI applications. These trends are fundamentally transforming the memory landscape, setting the stage for a new cycle of growth and presenting Netlist with major opportunities from both the product an IP standpoint. As you know, Netlist has been at the forefront of the industry developing next generation memory technology and backing its innovations with a strong patent portfolio. This approach is complemented by the strategic supply agreement with SK Hynix, which enables us to meet growing customer demand. Speaker 200:03:07Together these product and licensing strategies put Netlist in a strong position to continue to benefit from the memory market turnaround. On the legal front, Netlist made significant progress in 2020 3, on his efforts to defend and fairly license its intellectual property, including the Eastern District of Texas Jury Award of $303,000,000 in the case against Samsung, favorable rulings from German courts and cases against Samsung and some mixed results at the PTAB. 2024 is set to be another active year with what we will be multiple patent infringement jury trials. The case in the Eastern District of Texas before Chief Judge Gilstrap Addresses Micron's infringement through the sale of its DDR5 DIMMs and HBM components. Some of the same patents and product types that were at issue in our successful April edtx trial against Samsung. Speaker 200:04:12Heading into this trial, We received a favorable claim construction order that provides a strong foundation for Netlist's ability to prove infringement and validity against Micron. This case was reassigned from its original January start date and Judge Gilstrap recently issued a limited stay Citing his limited judicial resources pending the IPR results of Netlist's 60 and 160 patents. We expect the decision from the PTAB on those IPRs by or before April 12. Our team is ready and we look forward to presenting our infringement case to a jury. Netlist expects 2 additional Eastern District of Texas jury trials later this year. Speaker 200:05:06The second set of EDTX jury trials involve Netlist's consolidated case against Samsung and Micron under our 912 patent and multiple LRDIMM patents. This consolidated case continues to move forward With a pretrial conference set for March 11 and a jury trial start date currently set for April 15, 2024. This consolidated case involves the infringement of large volumes and significant dollars worth of DDR4 RDIMMs and LRDIMMs. The case is progressing despite Samsung and Micron's renewed efforts to delay the proceedings with new stay motions. Metlis' team secured favorable claim constructions at the end of last year, in this case, winning arguments for almost every term in dispute. Speaker 200:06:00While the case is currently consolidated and set for a joint trial on April 15, We expect the court to separate it into 2 cases that will each go to trial sometime in 2024. Netlist's 3rd case against Micron in the Western District of Texas was reassigned to the General Austin, Texas Judicial Docket Number 2, last year, upon the retirement of Judge Aykel, it is not currently set for trial, But Judge Robert Pittman recently requested parties to provide a status update by February 21, Where we plan to highlight the fact that 2 of our asserted patents there were found patentable by the Patent Trial and Appeals Board. As a reminder, this case involves netlist patents covering Micron's DDR4 LRDIMMs and was filed in 2021. Regarding the Samsung California contract breach case, this case was remanded to the U. S. Speaker 200:07:03District Court of the Central District of California following the split decision split ruling by the U. S. Court of Appeals. Central District Court Judge Mark Scarsi directed both parties to submit additional briefing in light of the 9th Circuit remand and held a summary judgment hearing on February 5. At the hearing, Judge Scorsese set the matter for a fast jury trial date of March 26. Speaker 200:07:35As I've mentioned before, we haven't yet been able to fully bring all of the Samsung's past actions to light before a jury. So we are eager to be able to do so in this upcoming trial next month. Turning to Netlist's April trial next month. Turning to Netlist's April 23 win against Samsung in the Eastern District Texas post judgment issues have been fully briefed by the parties and we are waiting for Judge Gilstrap to issue his final order. As noted previously, our jury verdict confirmed Samsung's willful infringement and set an implied royalty rate. Speaker 200:08:15Beyond the accrual of interest on our judgment, we hope to see a favorable outcome from the court On our motion for an ongoing royalty, which would confirm that Samsung's ongoing infringement would be automatically subject to the defined per unit rate we obtained at trial. Related to this case, We have filed requests for rehearing before the PTAB on the results of the inter party's review of Netlist 3,39, 918-fifty four patents that read on LRDIMM and DDR5 power management. These three patents were asserted as part of Netlist's April 2023 jury trial against Samsung. Netlist awaits reconsideration of these decisions And if denied, we'll have the option to file a notice of appeal within 63 days. Netlist's action in Germany against Samsung, Micron and Google continue to move forward. Speaker 200:09:16The German Federal Patent Court is expected to hold oral hearings on the validity of Netlist's asserted European patents in March 2024 for EP-seven thirty five and in July 2024 for EP-six sixty. As a reminder, Netlist needs a favorable ruling on only one of these patents to move forward with its request for an injunction before the German Dusseldorf Court. Looking ahead to 2024, we see a memory market that is going to have an year, driven by growth in demand and a strong pricing environment. The transition to new DDR 5 based servers and high bandwidth memory for AI are creating a huge demand for products that require Netlist's technology. These market dynamics highlight the key role of Netlist's technology and that it will play in the future of the memory industry and underscore the importance of remaining vigilant and enforcing our IP rights. Speaker 200:10:24Now I will turn the call over to Gail for the financial review. Speaker 300:10:31Thanks, Chuck. For the 12 months ended December 30, 2023, total product revenues were $69,200,000 compared to $161,600,000 for the full year ended December 31, 2022. These comparative results reflected the industry downturn in demand for memory during the 1st several quarters of 2023, combined with the oversupply in the market during most of the year. As noted by Chuck, we saw a strong uptick during the 4th quarter of 2023, where we generated close to 50% of our total 2023 revenue, highlighting the rapid improvement taking place in the market. Year over year, Q4 product revenue increased by 54% with 100% increase consecutively. Speaker 300:11:25We do not formally guide, but given booking and shipping for the Q1 of 2024 to date, plus the industry outlook for continued growth in both memory demand and pricing, We currently expect another moderate increase in product revenue for the Q1 compared to the Q4. The full year of 2023 increase in operating expense compared to 2022 was driven mainly by legal expenses due to a more active legal trial calendar in 2023 and also in preparation for 2024. This was partially offset by cost savings as we rightsize sales and marketing given the market downturn in the late in late 2022 through the first half of twenty twenty three. With multiple upcoming trials currently scheduled, We expect investment in these active campaigns to remain elevated during the first half of twenty twenty four and then moderate as we move through the rest of the year. We also expect to expand the sales and marketing team to meet the growth and demand. Speaker 300:12:41We ended 2023 with cash and cash equivalents on restricted cash of close to $53,000,000 compared to approximately $51,000,000 at the end of the prior quarter and approximately $44,000,000 at the end of 2022. In addition, with a $10,000,000 working capital line of credit With Silicon Valley Bank and approximately $34,000,000 available on the equity line of credit through Lincoln Park Capital, We continue to maintain significant financial flexibility and liquidity going forward. As always, We managed the operational cash cycle very carefully, which improved by 25 days in Q4 'twenty three compared to last year's Q4. Operator, we are now ready for questions. Operator00:13:31Thank you. We have a question from Suji Desilva with ROTH Capital. Please go ahead. Speaker 400:13:37Hi, Chuck. Hi, Gail. Congrats on the recovery here. Maybe you can talk about the revenue framework more broadly as we look at 2024. Your recovery here implies kind of $120,000,000 revenue run rate. Speaker 400:13:49In the past, you've done sort of $140,000,000 to $160,000,000 So I'm just trying to understand how to think about the recovery shape here relative to historical revenue levels? Speaker 300:14:00Hey, Suji. Yes, I mean, as we've noted and The analysts have said that 2024 will be a revenue positive year and we expect to be in line with that. But I think due to the lack of our own visibility, we'll take it quarter by quarter. We'll continue to soft guide in that way. But we are positive. Speaker 400:14:25Okay. And I appreciate that Gail. Understand it's a recovering environment. And then more specifically perhaps for Chuck, 24, these AI platforms as they come online, what are the upside opportunities for Netlist in terms of products, The timing of that, just to understand how that can flow to your opportunity here? Speaker 200:14:45Yes, Suji. So I think The AI platforms are as a percentage of overall servers that are installed is increasing. It's probably in the teens to 20% penetration rate. Most of those systems require higher speed DDR5, virtually all require DDR5 and that We have DDR5 products such as the DDR5 VLP, MRDIMMs and other higher capacity at the very high end of the product line, We offer those that are not offered by the major DRAM manufacturers. So I think we'll see good opportunities in that high end. Speaker 200:15:41In general, I think SSB demand We'll continue to grow and our high end SSD product lines 32 terabytes and above, I think that They will benefit that demand increase will benefit that part of our business as Speaker 400:16:02well. Okay. Great. And then my last question, Chuck and Dale, is thanks for all the litigation detail in the prepared remarks. Which of the top 3 sort of Next dates or sort of events or milestones that you think are most important for Netlist, should we watch for out of all the things that are happening? Speaker 100:16:22Yes. Speaker 200:16:26We've have in the coming 3 months, 3 to 4 months, we've got a number of trials. Obviously, we've prepared for the last couple of years, invested in these cases and the trial is a culmination of that investment. The first trial that was set out for January, unfortunately, that was postponed by Judge Gilstrap due to resource issues and that so that is pending the outcome of HBM's IPR results of the HBM final IPR, final written decision. So we hope to have that trial upon those results coming out. We've got a trial set for, as I said, March 26, against Samsung. Speaker 200:17:29That is a major trial on breach of contract. And then there are Two trials in a combined case against Samsung and Micron that are currently set for April 15. And those are Again, for past damages for RDIMMs and LRDIMMs that are of significant dollar exposure to both of those companies, Those will likely be separated out into 2 separate trials, sometime 2nd quarter or mid-twenty 24. So we're very busy preparing for these trials and we're working hard to win those trials and prove infringement and validity of these patents. Speaker 400:18:30Okay, I'll check. Thanks, Gail. Speaker 300:18:33All right. Thanks, Suji. Operator00:18:34Thank you. And this concludes today's conference call. We thank you all for attending today's presentation.Read morePowered by