TXN Texas Instruments Incorporated

Netlist Inc. (NLST) said it has settled a lawsuit against Texas Instruments Inc. (TXN) concerning computer memory modules and related technology.

Netlist shares jumped 11% to $3.05 in premarket trading. The stock was down 47% this year through Friday

The designer and producer of memory subsystems for server and communications markets has been tangled in patent litigation recently and has been unprofitable. Chipmaker Texas Instruments, for its part, has seen profits soar recently as businesses and consumers resume spending on technology.

Netlist, which gets most of its business from Dell Inc. (DELL) and Hewlett-Packard Co. (HPQ), had sued Texas Instruments for misappropriation of trade secrets and breach of contract.

-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240, matthew.jarzemsky@dowjones.com