Netlist Inc

Good day, and welcome to the NetList first quarter of 2026 earnings conference call. All participants will be in a listen-only mode for the duration of the call. And should you need any assistance today, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw a question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Mike Smarjasi, Investor Relations. Please go ahead.

Thank you, Joe, and good day, everyone. Welcome to NetList's first quarter 2026 conference call. Leading today's call will be Chuck Hong, Chief Executive Officer of NetList, and Gail Sasaki, Chief Financial Officer. As a reminder, you can access the earnings release and a replay of today's call by on the investor section of the NETLIS website at netlis.com. Before we start the call, I would note that today's presentation of NETLIS results and the answers to questions may include forward-looking statements, which are based on current expectations. The actual results could differ materially from those projected in the forward-looking statements because of the number of risks and uncertainties that are expressed in the call, annual and current SEC filings, and the cautionary statements contained in today's press release. Netlist assumes no obligation to update forward-looking statements. I will now turn the call over to Chuck.

Thanks, Mike. And hello, everyone. We delivered a strong first quarter performance, achieving record quarterly revenue, and a significant improvement in profitability. These results were driven by robust demand for our memory products and disciplined execution across the business. As we discussed on prior call, the memory market remains structurally undersupplied. AI-driven demand continues to accelerate while DRAM capacity remains constrained. This imbalance is rippling across the economy from smartphones to data center servers. In netless markets, demand remains healthy across key end applications, even as supply stays tight across OEM and distribution channels. The outlook for memory remains favorable. Industry-wide, supply constraints are expected to persist until new fabrication capacity comes online later next year, which could delay meaningful relief until 2029. Analysts continue to expect pricing to rise through the rest of the year, though at a slower pace than the sharper increases seen in recent quarters. On the product side, our lightning portfolio of overclocked, low-latency DDR5 RDEMs and UDEM solutions continue to ramp. We are progressing through qualifications with OEMs particularly in high-frequency trading and high-performance computing space. We also continue to support industrial and networking customers with our DDR4-based custom solutions, and these accounted for a major portion of our revenues this quarter. On the next-generation products, we're advancing CXL NV-DEM and low-power MR-DEM solutions. Our CXL NV-Vault is a CXL Type 3 persistent memory designed to extend memory class storage beyond the CPU socket while preserving low latency and data durability. It provides a product that combines DRAM-like access with persistence through power events addressing the growing performance and capacity needs of AI workloads. We continue to sample and de-vault with major OEMs on next-generation platforms. Regarding our low-power MR-DEM solution, we continue to be active in the development of this technology, which contains proprietary ECC protocols developed by Netlist. And we are looking to become the first supplier to bring the benefits of low-power DRAM into the server space, which is very sensitive. The data centers in particular are sensitive to power concerns. On the IP front, we continue to advance the defense of Netlist patents and multiple favorable jury verdicts in our appellate process. As you know, Netlist is seeking exclusion and cease and desist orders against Samsung, Google, and Supermicro at the ITC. A favorable ruling would block the importation of Samsung products that infringe our patents and cease and desist of commercial activities by Google and Supermicro, which involve Samsung memory products. The Markman hearing was held on April 21st, and our legal team performed very well. We look forward to the Markman order and to the start of trial this fall. Netlist has asserted that 366-731-608-523-035 and 087 patents at the ITC. These patents cover one or more products, including DDR5 memory modules, such as RDEM, UDEM, SODEM, and MRDEM, as well as high bandwidth memory, HBM. In 2025, the U.S. Court of Appeals for the Federal Circuit affirmed the validity of our 608 and 523 patents, upholding the PTAB's IPR decision. Last month, the USPTO also denied both Samsung's IPR and PGR challenges to our 366 patent, which covers DDR5 module power management technology. These outcomes further validate the strength of our IP and puts us in a favorable position in the ITC case. As a footnote, the 366 patent is also asserted in our 2025 Eastern District of Texas action against Samsung, Micron, and Avnet. On March 6th, the U.S. Court of Appeal for the Fifth Circuit heard oral arguments on Samsung's appeal of the Eastern District of Texas 2023 jury verdict, which awarded Netlis $303 million for willful damages of five patents. The court also heard Netlis' appeal involving IPR challenges to the 339, 918, 054, 060, and 160 patents asserted in that case. The court will issue decisions in due course. In our breach of contract case against Samsung, briefing is expected to conclude this summer, and we remain on track for a hearing before the U.S. Court of Appeals for the Ninth Circuit later this year. In addition, we currently expect First Circuit oral arguments related to the IPRs of 912, 417, 215 patents in the coming months. In April, the U.S. Department of Justice filed a public interest comment in the Samsung v. Netlist case in the U.S. District Court for the District of Delaware. The statement addressed standard essential patents, antitrust, and market power issues and supported Netlist's positions. This marks the second DOJ statement of interest in the past six months that have been supportive of Netlist in matters involving Samsung. These comments underscore the administration's support for U.S. innovation and the enforcement of U.S. patent rights. In summary, We delivered a strong first quarter and remain well positioned in the current market environment as we scale our product business and advance our IP strategy. We continue to secure validation of our patents and the strength of these patents, and we continue to pursue vigorous enforcement actions covering next generation DDR5 and HBM technologies that are foundational to AI computing. Now I'll turn the call over to Gail for the financial review.