Netlist, Inc., incorporated in June 2000, designs, manufactures and sells memory subsystems primarily for the server, high-performance computing and communications markets. The Company’s memory subsystems consist of dynamic random access memory integrated circuits (DRAM ICs), NAND flash memory (NAND) and other components assembled on a printed circuit board (PCB). The Company also design custom semiconductor logic devices which are integrated into its memory subsystems. Net sales to the two customers: Dell and Hewlett Packard, represented approximately 90% of the Company’s net sales during the fiscal year ended January 3, 2009 (fiscal 2008). Net sales to some of its original equipment manufacturer (OEM) customers include memory modules that are qualified by Netlist, Inc. directly with the OEM customer and sold to electronic manufacturing services providers (EMSs), for incorporation into products manufactured exclusively for the OEM customer. The Company offers a lineup of DRAM ICs, memory modules using a range of DRAM technologies from legacy Fast Page/Extended-Data-Out (FP/EDO), and Synchronous DRAM (SDRAM) to double-data-rate (DDR) and DDR2 SDRAM and high-performance DDR3 SDRAM devices. These modules encompass a range of form factors and functions and dual in-line memory modules (DIMMs), fully-buffered DIMMS (FBDIMMS), small outline dual in-line memory modules, very low profile (VLP), DIMMs and mini-DIMMs for space-constrained blade servers, or 1.75 inch thin computing servers, and networking applications. These memory modules come in configurations of up to 244 pins and densities of up to 8 gigabyte (GB). The Company also accommodates custom module designs based on specific OEM requirements. The DDR, DDR2 and DDR3 memory modules are designed to operate with devices available through the use of electrical and thermal simulation and modeling. The DDR, DDR 2 and DDR3 DIMMs are tested at-speed on high-end functional testers. Netlist, Inc. introduced the Industrial Flash products, which are based on single and dual channel 32 bit RISC microcontrollers that meet the requirements of the Industrial OEM's within the networking, telecom and storage markets. With product performance and sustained read across multiple form factors, such as Compact Flash, the Company’s product line is designed to meet individualized customer requirements and complements the suite of DRAM products. The Company’s FBDIMM design uses a low-power AMB and a 4-Rank x8 configuration. The Company offers power-efficient FBDIMM solutions in 2 gigabyte, 4 gigabyte and 8 gigabyte capacities at speeds up to PC2-6400 or 800MT/s. In addition to the thermal engineering, Netlist, Inc. uses a set of design techniques, such as impedance matching, reduced capacitive loading and built-in air gaps (to eliminate cross talk and electro-magnetic coupling) to enable a registered DIMM that delivers up to PC2-6400 performance. Netlist, Inc. pioneered the VLP design using board-stacking technology. These modules find their applications in the thin form-factor systems like the Blade Servers and Telecom equipment. The VLP designs are available as 1 gigabyte, 2 gigabyte, 4 gigabyte, DDR1 and 2 gigabyte, 4 gigabyte, and 8 gigabyte DDR2 RDIMM. 1 gigabyte, 2 gigabyte and 4 gigabyte SODIMM are available as non-ECC modules in 200-pin connector form-factor. The 1 gigabyte and 2 gigabyte VLP and LP Mini-RDIMM are also available as ECC modules in 244-pin connector form-factor. The small DIMM options help increase the capacities of the mobile clients, workstation, and communication systems. The Company designs and manufactures industrial flash memory products in a variety of form factors and capacities. The range of flash memory products comes in Compact-Flash, PC Card, Secure Digital with plans to support other form factors with a USB interface. These flash modules are used in telecom equipment, printers, embedded controller applications, servers, switches and routers. The Company’s competitors include STEC, SMART Modular Technologies, Inc., Viking Interworks, Hynix, Samsung and Micron.