"We're already talking to
In December, Netlist shares were hammered after Inphi Corp sued for patent infringement, arguing that Netlist's memory modules, such as HyperCloud, infringe on two patents Inphi holds.
Netlist immediately fired back that the suit is "without merit" and was only in response to a patent infringement action filed by Netlist against Inphi in September 2009. Netlist first initiated the patent suits against Google and Inphi, Hong says, adding that he's very confident Netlist's patents will hold up to anything.
"We feel this to be a seminal patent and a family of patents now in server memory. It's really a breakthrough in server memory," he said. "The HyperCloud product really emanates from this patent. We came up with it starting with an invention in 2004 when creating a product for Apple (AAPL). It didn't come out of a vacuum. It's a technology platform that has legs for the next decade or more."For now, speculators will continue to debate whether the remarkable comeback in Netlist shares now reflects the company's true value or whether the trading action is part of a pump-and-dump move by speculators driving the stock higher. But Hong is optimistic about what lies ahead for Netlist. If third-party analyst reports are correct, HyperCloud is going to be a juggernaut in what is set to be a very large market, he argues. "The resulting end product is custom and high value, so there's really no alternative anywhere else," Hong said. "We have ourselves in a very strong position in the market." -- Written by Robert Holmes in Boston. Check out all of Friday's high-volume, under-$5 stocks at the Dollar Store Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.
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