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Netlist Jumps on New Patents

Shares of Irvine-based computer memory products maker Netlist Inc. jumped Wednesday on word of newly granted patents.

Netlist’s stock closed up more than 10% to a market value of $67 million.

The company, which makes memory boards with specialized controller chips that help manage other memory within servers, said it was granted three patents, including an extension of an existing one.

The patents relate to Netlist’s HyperCloud memory boards, which maximize the use of memory in corporate computers.

The issuances bring Netlist’s patents to 21 granted and 20 pending.

“These three new patents reinforce Netlist’s intellectual property position,” Chief Executive C.K. “Chuck” Hong said.

The newly granted patents are part of a larger strategy by Netlist to move beyond memory modules, which help computers run faster but are a dime a dozen.

The company’s more advanced controller chips help boost performance, cut down on power and save on costs for running data storage centers, according to Netlist.

Netlist is coming off a rough few years since its initial public offering in late 2006, when it raised roughly $35 million.

A massive memory chip slump in 2007 and another in 2008 all but steamrolled Netlist as falling prices of memory chips slashed the value of its stockpiles and squeezed profits.

The company’s stock collapsed in early 2009, before rebounding later that year with Netlist’s new direction.

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