ARMONK (dpa-AFX) - Shares of Netlist Inc. (NLST) surged 32 percent in after-hours trade on Monday after it signed two memory technology collaboration agreement with International Business Machines Corp. (IBM) and Hewlett-Packard Co. (HPQ) to use its product HyperCloud technology with IBM's and HP's servers.
The agreement with IBM is non-exclusive, while the agreement with HP is exclusive for a period of time. There can be no assurance that the efforts undertaken under the agreement will result in any new revenues for the company, Netlist said in a filing with Securities and Exchange Commission.
IBM and Netlist have agreed to cooperate with respect to the qualification of HyperCloud technology for use with IBM servers and to engage in certain joint marketing efforts if qualification is achieved.
HP and Netlist agreed to collaborate on the future use of HyperCloud load reduction and rank multiplication technologies for next generation server memory for HP.
Both IBM and HP have agreed to commit resources and funds in support of the activities.
NLST closed Monday's trading on the Nasdaq at $2.35, up $0.43 or 22.40%. The stock further rose $0.75 or 31.91%, in extended hours trade. Trading volume for the day was 1.4 million shares, above the three-month average volume of 0.1 million shares.
Copyright RTT News/dpa-AFX
