Netlist Provides Update on Lawsuit Against Diablo Technologies, Smart Modular Technologies, Smart Storage Systems & Smart Wor...
December 16 2013 - 8:39AM
Marketwired
Netlist Provides Update on Lawsuit Against Diablo Technologies,
Smart Modular Technologies, Smart Storage Systems and Smart
Worldwide Holdings
IRVINE, CA--(Marketwired - Dec 16, 2013) - Netlist, Inc.
(NASDAQ: NLST), a leading provider of high performance and hybrid
memory solutions for the cloud computing and storage markets,
provided an update on its lawsuit against Diablo Technologies,
Inc., Smart Modular Technologies, Inc., Smart Storage Systems, Inc.
and Smart Worldwide Holdings, Inc.
As noted in its 8-K filed with the Securities and Exchange
Commission on December 12, 2013, on November 13, 2013, Netlist's
CEO, C.K. Hong, received a whistleblower letter postmarked from
Canada (where Diablo is based), and apparently written by a current
or former Diablo employee. The letter begins by stating that Diablo
stole Netlist's architecture and design. The letter goes on to
explain that, in creating its new ULLtraDIMM product, Diablo took
Netlist's flagship product, HyperCloud™, "as-is." Diablo then
passed off the resulting product as its own to potential customers,
including in demonstrations to IBM, Hewlett-Packard and others. The
letter further states that Diablo's management conspired to hide
this theft by instructing its employees not to speak to customers
about the fact that Netlist's product was incorporated into
ULLtraDIMM. The letter includes diagrams showing precisely how
Diablo implemented the theft of Netlist's trade secrets, as well as
the names of former Diablo employees, customers and suppliers who
can verify the theft. Netlist is aggressively pursuing an
investigation into Diablo's theft of Netlist's trade secrets.
"HyperCloud® technology addresses a multi-billion dollar market
and was developed by Netlist over six years at a cost of $65
million. We have been issued new patents, the USPTO continues to
validate claims under reexamination and there have been an
increasing number of citations of Netlist patents by industry
leaders," said C.K. Hong, CEO of Netlist. "We are proud to have
compiled significant and seminal intellectual property assets and
we are committed to vigorously defending these assets against those
that infringe on our IP, particularly those dishonest parties that
seek to intentionally steal our most valuable intellectual
assets."
Netlist has steadily invested in and grown its intellectual
property, which now includes 41 issued U.S. patents and more than
40 U.S. and foreign pending patent applications in the areas of
high performance memory subsystems and hybrid memory technologies.
Netlist's patents have increasingly been cited by others such as
Google and Micron as they seek to patent their work in the
high-performance memory arena. Analysts anticipate the market for
HyperCloud®-like products to grow exponentially over the next
decade through DDR4.
About Netlist:
Netlist, Inc. designs and manufactures high-performance,
logic-based memory subsystems for server and storage applications
for cloud computing. Netlist's flagship products include
HyperCloud®, NVvault™ and EXPRESSvault™ family of products that
significantly accelerate system performance and provide mission
critical fault tolerance, and a broad portfolio of industrial Flash
and specialty memory subsystems including VLP (very low profile)
DIMMs and Planar-X RDIMMs.
Netlist develops technology solutions for customer applications
in which high-speed, high-capacity, small form factor and heat
dissipation are key requirements for system memory. These customers
include OEMs that design and build tower, rack-mounted, and blade
servers, high-performance computing clusters, engineering
workstations and telecommunications equipment. Founded in 2000,
Netlist is headquartered in Irvine, CA with manufacturing
facilities in Suzhou, People's Republic of China. Learn more at
www.netlist.com.
Safe Harbor
Statement: This news release contains forward-looking
statements regarding future events and the future performance of
Netlist. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expected or projected. These risks and uncertainties
include, but are not limited to, risks associated with the launch
and commercial success of our products, programs and technologies;
the success of product partnerships; continuing development,
qualification and volume production of EXPRESSvault™, NVvault™,
HyperCloud® and VLP Planar-X RDIMM; the timing and magnitude of the
anticipated decrease in sales to our key customer; our ability to
leverage our NVvault™ technology in a more diverse customer base;
the rapidly-changing nature of technology; risks associated with
intellectual property, including patent infringement litigation
against us as well as the costs and unpredictability of litigation
over infringement of our intellectual property and the possibility
of our patents being reexamined by the United States Patent and
Trademark office; volatility in the pricing of DRAM ICs and NAND;
changes in and uncertainty of customer acceptance of, and demand
for, our existing products and products under development,
including uncertainty of and/or delays in product orders and
product qualifications; delays in the Company's and its customers'
product releases and development; introductions of new products by
competitors; changes in end-user demand for technology solutions;
the Company's ability to attract and retain skilled personnel; the
Company's reliance on suppliers of critical components and vendors
in the supply chain; fluctuations in the market price of critical
components; evolving industry standards; and the political and
regulatory environment in the People's Republic of China. Other
risks and uncertainties are described in the Company's annual
report on Form 10-K filed on March 29, 2013, and subsequent filings
with the U.S. Securities and Exchange Commission made by the
Company from time to time. Except as required by law, Netlist
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For more information, please contact: Brainerd Communicators,
Inc. Corey Kinger/Mike Smargiassi NLST@braincomm.com (212) 986-6667
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