Irvine-based Netlist Inc., one of Orange County’s bigger startups with an estimated $100 million in sales last year, is seeking venture capital funding, according to a company official.
“We’re looking for partners who would be able to support us and help us grow,” said Arun Kamat, Netlist’s vice president of marketing.
Kamat didn’t say how much Netlist is looking to raise. The company is profitable, he said.
The recent departure of two executives and the company’s reliance on key customer Dell Inc. could be a factor in Netlist’s money-raising efforts.
Dell makes up 70% of the company’s sales, according to sources. Netlist’s deal with Dell impressed many in OC’s venture capital and tech circles and spawned interest in the company as a highflier.
Kamat said the company’s relationship with Dell is strong, despite some rumblings from observers that the relationship hit a rough patch.
The speculation is “sheer nonsense,” he said.
The company makes custom computer memory boards,dubbed “application specific embedded modules”,for servers, routers and other networking devices.
Sometimes there are engineering conflicts, Kamat said. But nothing related to the quality of the company’s products for Dell, he said.
In July, Dell honored Netlist, presenting it with its Diverse Supplier award at its Round Rock, Texas, headquarters. Dell Chairman Michael Dell presented the award to Netlist.
At the time, a Dell vice president said Netlist had “99.97% on-time delivery, 100% upside response within 24 hours and 70% better quality than other suppliers.”
The company’s sales have grown every quarter since last year, he said, declining to give numbers.
“Our revenue is going up, and we are actually diversifying our business,” Kamat said.
Netlist, which has 100 workers in OC, has seen two managers leave in recent months. One was former chief financial officer John Hohener, who joined San Clemente-based dental laser maker Biolase Technology Inc.
The other worked in operations and recently joined a company in the telecom industry, Kamat said.
Hohener was interested in working at a public company, Kamat said, adding there hasn’t been any management exodus from Netlist.
Chief Executive Charles “Chuck” Hong started Netlist in 2000 along with Chris Lopes. The two worked together at Rancho Santa Margarita-based Viking Components Inc., now Viking Interworks, part of San Jose-based contract electronics maker Sanmina-SCI Corp.
