IRVINE, CA - Netlist , Inc. (OTCQB:OTC:NLST) has secured a $445 million damages award in a patent infringement case against Micron Technology (NASDAQ:MU), according to a jury verdict from the United States District Court for the Eastern District of Texas.
The decision, announced today, concludes that Micron Technology, Inc., Micron Semiconductor Products, Inc., and Micron Technology Texas LLC collectively infringed on two Netlist patents.
The patents in question, U.S. Patent Nos. 7,619,912 and 11,093,417, relate to memory technologies used in Micron's DDR4 RDIMMs and DDR4 LRDIMMs. The jury found that Micron willfully infringed these patents and owed Netlist monetary damages for this infringement. The awarded damages cover the period of infringement from April 2021 to May 2024 for the ‘912 patent and from August 2021 to May 2024 for the ‘417 patent.
C.K. Hong, Netlist's CEO, remarked on the significance of the verdict, emphasizing the value of Netlist's technology and the jury's recognition of the company's intellectual property rights. This is the second instance in just over a year where a jury has found a major semiconductor manufacturer willfully infringing on Netlist's patents.
Netlist is known for its innovation in memory and storage solutions, holding a portfolio of patented technologies in the field. The company's focus on enterprise memory and storage has positioned it as a notable player in the technology sector.
The verdict may be subject to appeal by Micron, which could delay or impact the final outcome. The full details of the case, Netlist, Inc. v. Micron Technology, Inc., EDTX Case No. 2:22-cv-294-JRG, are available through the Public Access to Court Electronic Records (PACER) service.
This news is based on a press release statement.
InvestingPro Insights
Following the significant legal victory for Netlist, Inc. (OTCQB:NLST) against Micron Technology, the company's financial metrics from InvestingPro offer a mixed picture. The market capitalization of Netlist stands at a modest $529.07 million, reflecting the size of the company within the competitive technology sector. Despite a challenging past year with a revenue decline of -20.31% in the last twelve months as of Q1 2024, the company has made a remarkable quarterly revenue growth of 296.93% in Q1 2024, indicating a potential turnaround or impact from the litigation outcome.
InvestingPro Tips suggest that Netlist's P/E ratio, which is currently negative at -8.09, and even lower when adjusted for the last twelve months as of Q1 2024 at -14.99, indicates the company is not generating net profits based on its share price. However, the PEG ratio of 0.25 suggests that investors may see the company's earnings growth potential favorably relative to its share price. The price/book ratio is exceptionally high at 49.63, which could signal that the market has high expectations for Netlist's future growth, or that its assets are significantly valued by investors.
For investors interested in deeper analysis, InvestingPro has additional tips on Netlist's financial health and future prospects. With a promo code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of data and insights. Currently, there are several more InvestingPro Tips available for Netlist, which could guide investment decisions post-verdict.
It's noteworthy that the company's share price has experienced significant volatility, with a 50.0% increase over the past month and a 26.22% increase in the last week alone, possibly in anticipation or reaction to the legal decision. The InvestingPro Fair Value estimate stands at $1.43, which is below the current price of $1.99, suggesting that the market may be pricing in future positive developments for the company.
The next earnings date for Netlist is projected to be July 30, 2024, which will provide further insights into the company's financial trajectory following this landmark legal victory.
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