UsetheselinkstorapidlyreviewthedocumentTABLEOFCONTENTSTABLEOFCONTENTS

TableofContents

Filed Pursuant to Rule 424(b)(5) Registration No. 333-199446

PROSPECTUS SUPPLEMENT (totheprospectusdatedSeptember2,2016)

$9,000,000

NETLIST, INC.Common Stock

WehaveenteredintoanAtMarketIssuanceSalesAgreement(the"SalesAgreement")withB.RileyFBR,Inc.("B.RileyFBR"orthe"Agent"),underwhichwemayofferandsell,fromtimetotime,sharesofourcommonstockhavingaggregatesalesproceedsofupto$9,000,000,asdescribedinthisprospectussupplementandtheaccompanyingprospectus.ThesharesofcommonstockaretradedontheNASDAQCapitalMarket("NASDAQ")underthesymbol"NLST".OnNovember10,2017,thelastreportedsalespriceofourcommonstockonNASDAQwas$0.70pershare.

Salesofthecommonstock,ifany,underthisprospectussupplementandtheaccompanyingprospectusmaybemadeintransactionsthataredeemedtobe"atthemarketofferings"asdefinedinRule415undertheSecuritiesActof1933,asamended(the"SecuritiesAct").TheAgentisnotrequiredtosellanyspecificnumberofsharesofcommonstock,buttheAgentwillmakeallsalesusingcommerciallyreasonableeffortsconsistentwithitsnormaltradingandsalespracticesonmutuallyagreedtermsbetweentheAgentandus.See"PlanofDistribution"onpageS-39.

ThesecuritiestowhichthisprospectussupplementandtheaccompanyingprospectusrelatewillbeofferedandsoldthroughtheAgentoveraperiodoftimeandfromtimetotime.UndertheSalesAgreement,theAgentwillbeentitledtocompensationequalto3.0%ofthegrossproceedsofallsharesofcommonstocksoldthroughitasouragent.Inaddition,wehaveagreedtopayCraig-HallumCapitalGroupLLC("C-H")afeenottoexceed1.0%ofthegrossproceedsfromsharesofourcommonstocksoldinthisofferingbytheAgentthroughandincludingFebruary16,2018,inexchangeforC-H'swaiver,solelywithrespecttothisoffering,ofitsrightoffirstrefusalinaccordancewiththeengagementletterenteredintobyC-HandusonJuly31,2017inconnectionwithourpriorpublicofferinginAugust2017.Inconnectionwiththesaleofthesharesofcommonstockonourbehalf,theAgentmaybedeemedtobean"underwriter"withinthemeaningoftheSecuritiesAct,andthecompensationoftheAgentmaybedeemedtobeunderwritingcommissionsordiscounts.Thereisnoarrangementtoplaceproceedsoftheofferinginescrow,trustorsimilararrangement.See"PlanofDistribution."

Deliveryofthesharesofcommonstockinbook-entryformonlythroughTheDepositoryTrustCompanywillbemadeonoraboutthesecondtradingdatefollowingthedateofpurchase.

Investing in our securities involves a high degree of risk. Before deciding whether to invest in our securities, you shouldreview carefully the risks and uncertainties described under the heading "Risk Factors" on page S-8 of this prospectussupplement. This prospectus supplement should be read in conjunction with and may not be delivered or utilized without theprospectus dated September 2, 2016.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determinedif this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

B. Riley FBR

ThedateofthisprospectussupplementisNovember14,2017.

TableofContents

TABLE OF CONTENTS

Nodealer,salespersonorotherpersonisauthorizedtogiveanyinformationortorepresentanythingnotcontainedinthisprospectussupplementortheaccompanyingprospectus.NeitherwenortheAgenttakeanyresponsibilityfororprovideanyassuranceastothereliabilityofanyotherinformationthatothersmaygiveyou.Youmustnotrelyonanyunauthorizedinformationorrepresentations.Thisprospectussupplementandtheaccompanyingprospectusareanoffertosellonlythesecuritiesofferedhereby,butonlyundercircumstancesandinjurisdictionswhereitislawfultodoso.Theinformationcontainedinthisprospectussupplementandtheaccompanyingprospectusiscurrentonlyasoftheirrespectivedates.

Personswhocomeintopossessionofthisprospectussupplement,theaccompanyingbaseprospectusoranyrelatedfreewritingprospectusinjurisdictionsoutsidetheUnitedStatesarerequiredtoinformthemselvesaboutandtoobserveanyrestrictionsastothisofferingandthedistributionofthisprospectussupplement,theaccompanyingprospectusandanysuchfreewritingprospectusapplicabletothatjurisdiction.

Page Prospectus Supplement ABOUTTHISPROSPECTUSSUPPLEMENT S-1SPECIALCAUTIONARYNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS S-3PROSPECTUSSUPPLEMENTSUMMARY S-4THEOFFERING S-6RISKFACTORS S-8USEOFPROCEEDS S-36DILUTION S-37PLANOFDISTRIBUTION S-39LEGALMATTERS S-40EXPERTS S-40WHEREYOUCANFINDMOREINFORMATION S-40INCORPORATIONOFCERTAINDOCUMENTSBYREFERENCE S-40

Prospectus ABOUTNETLIST,INC. 1RISKFACTORS 1SPECIALNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 1USEOFPROCEEDS 2SECURITIESWEMAYOFFER 2DESCRIPTIONOFCAPITALSTOCK 3DESCRIPTIONOFWARRANTS 5DESCRIPTIONOFUNITS 6PLANOFDISTRIBUTION 7LEGALMATTERS 8EXPERTS 9INCORPORATIONOFCERTAINDOCUMENTSBYREFERENCE 9WHEREYOUCANFINDMOREINFORMATION 9

TableofContents

ABOUT THIS PROSPECTUS SUPPLEMENT

ThisprospectussupplementandtheaccompanyingbaseprospectusarepartofaregistrationstatementonFormS-3(FileNo.333-199446)thatwefiledwiththeSecuritiesandExchangeCommission("SEC")utilizinga"shelf"registrationprocess.Eachtimewesellsecuritiesundertheaccompanyingbaseprospectuswewillprovideaprospectussupplementthatwillcontainspecificinformationaboutthetermsofthatoffering,includingtheprice,theamountofsecuritiesbeingofferedandtheplanofdistribution.TheshelfregistrationstatementwasinitiallyfiledwiththeSEConOctober17,2014,andwasdeclaredeffectivebytheSEConSeptember2,2016.Thisprospectussupplementdescribesthespecificdetailsregardingthisofferingandmayadd,updateorchangeinformationcontainedintheaccompanyingbaseprospectus.Theaccompanyingbaseprospectusprovidesgeneralinformationaboutus,someofwhich,suchasthesectionentitled"PlanofDistribution,"maynotapplytothisoffering.Generally,whenwerefertothis"prospectus,"wearereferringtobothdocumentscombined.

Ifinformationinthisprospectussupplementisinconsistentwiththeaccompanyingbaseprospectusortheinformationincorporatedbyreference,youshouldrelyonthisprospectussupplement.Thisprospectussupplement,togetherwiththeaccompanyingbaseprospectusandthedocumentsincorporatedbyreferenceintothisprospectussupplementandtheaccompanyingbaseprospectusandanyrelatedfreewritingprospectus,includesallmaterialinformationrelatingtothisoffering.Wehavenotauthorizedanyonetoprovideyouwithdifferentoradditionalinformation.Ifanyoneprovidesyouwithdifferentorinconsistentinformation,youshouldnotrelyonit.Youshouldassumethattheinformationappearinginthisprospectussupplement,theaccompanyingbaseprospectus,anyrelatedfreewritingprospectus,andthedocumentsincorporatedbyreferenceinthisprospectussupplementandtheaccompanyingbaseprospectusisaccurateonlyasoftherespectivedatesofthosedocuments.Ourbusiness,financialcondition,resultsofoperationsandprospectsmayhavechangedsincethosedates.You shouldcarefully read this prospectus supplement, the accompanying base prospectus, the information and documents incorporated herein and therein byreference, any related free writing prospectus, and the additional information under the heading "Where You Can Find More Information" beforemaking an investment decision .

Wearenot,andtheAgentisnot,makinganoffertosellorsolicitinganoffertobuyoursecuritiesinanyjurisdictioninwhichanofferorsolicitationisnotauthorizedorinwhichthepersonmakingthatofferorsolicitationisnotqualifiedtodosoortoanyonetowhomitisunlawfultomakeanofferorsolicitation.

Wefurthernotethattherepresentations,warrantiesandcovenantsmadebyusinanyagreementthatisfiledasanexhibittoanydocumentthatisincorporatedbyreferenceintothisprospectussupplementortheaccompanyingbaseprospectusweremadesolelyforthebenefitofthepartiestosuchagreement,including,insomecases,forthepurposeofallocatingriskamongthepartiestosuchagreements,andshouldnotbedeemedtobearepresentation,warrantyorcovenanttoyou.Moreover,suchrepresentations,warrantiesorcovenantswereaccurateonlyasofthedatewhenmade.Accordingly,suchrepresentations,warrantiesandcovenantsshouldnotbereliedonasaccuratelyrepresentingthecurrentstateofouraffairs.

Unlessotherwisementionedorunlessthecontextrequiresotherwise,allreferencesinthisprospectusto"Netlist,""theCompany,""we,""us"and"our"refertoNetlist,Inc.,aDelawarecorporation,anditssubsidiariesonaconsolidatedbasis.

Basis of Presentation

Wereportourresultsofoperationsona52-or53-weekfiscalyearendingontheSaturdayclosesttoDecember31,witheachfiscalquartergenerallydividedintothreeperiodsconsistingoftwo

S-1

TableofContents

four-weekperiodsandonefive-weekperiod.OurlastthreecompletedfiscalyearsendedonDecember27,2014,January2,2016andDecember31,2016.

Trademarks and Trade Names

Thisprospectussupplementincludesourtrademarksandservicemarks,EXPRESSvault®,NVvault®,HyperCloud®andHybriDIMM™,whichareprotectedunderapplicableintellectualpropertylawsandarethepropertyoftheCompany.Thisprospectussupplementmayalsocontaintrademarks,servicemarks,tradenamesandcopyrightsofothercompanies,whicharethepropertyoftheirrespectiveowners.Solelyforconvenience,trademarksandtradenamesreferredtointhisprospectussupplementmayappearwithoutthe®or™symbols.Wedonotintendouruseordisplayofotherparties'trademarks,tradenamesorservicemarkstoimply,andsuchuseordisplayshouldnotbeconstruedtoimply,arelationshipwith,orendorsementorsponsorshipofusby,theseotherparties.

S-2

TableofContents

SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Thisprospectussupplement,theaccompanyingbaseprospectus,andthedocumentswehavefiledwiththeSECthatareincorporatedhereinandthereinbyreferenceincludesandincorporatesbyreference"forward-lookingstatements."Weintendtheseforward-lookingstatementstobecoveredbythesafeharborprovisionsforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995.Wordssuchas"anticipate,""estimate,""expect,""project,""intend,""may,""will,""might,""plan,""predict,""believe,""should,""could,""can,""would,"andsimilarwordsorexpressionsareintendedtoidentifyforward-lookingstatementsalthoughnotallforward-lookingstatementscontaintheseidentifyingwords.Theseforward-lookingstatementsincludestatementsabout,amongotherthings:ourplansrelatingtoourintellectualpropertystrategy,includingourstrategyformonetizing,licensing,expandinganddefendingourpatentportfolio;ourexpectationswithrespecttostrategicpartners,includingourrelationshipwithSamsungElectronicsCo.,Ltd.("Samsung")andthepotentialforcommerciallicensingagreements;ourexpectationsandstrategiesregardingoutstandinglegalproceedingsandpatentreexaminationsrelatingtoourintellectualpropertyportfolio,includingourpendingproceedingsagainstSKhynixInc.,aSouthKoreanmemorysemiconductorsupplier("SKhynix");ourexpectationsregardingourstrategy,businessplansandobjectives,ourfutureoperationsandfinancialposition,includingfuturerevenues,costsandprospects,andourliquidityandcapitalresources,includingcashflows,sufficiencyofcashresources,effortstoreduceexpensesandthepotentialforfuturefinancings;ourbeliefsregardingthemarketanddemandforourproductsorthecomponentproductswereselltocustomersdirectly;thecompetitivelandscapeofourindustry;generalmarket,economicandpoliticalconditions;andanyotherstatements,otherthanstatementsofhistoricalfacts,includedorincorporatedbyreferenceinthisprospectussupplementortheaccompanyingbaseprospectusregardingourstrategy,futureoperations,financialposition,futurerevenues,projectedcosts,prospects,plansandobjectivesofmanagement.Allforward-lookingstatementsreflectourmanagement'spresentexpectationoffutureeventsandaresubjecttoknownandunknownrisks,uncertaintiesandassumptionsthatcouldcauseactualresultstodiffermateriallyfromthosedescribedinanyforward-lookingstatements.Theserisksanduncertaintiesinclude,amongothers,therisksdescribedundertheheading"RiskFactors"containedinthisprospectussupplement,anyrelatedfreewritingprospectus,andinourmostrecentannualreportonForm10-KandquarterlyreportsonForm10-Q,aswellasanyamendmentstheretoreflectedinsubsequentfilingswiththeSEC.Giventheserisks,uncertaintiesandotherimportantfactors,youshouldnotplaceunduerelianceontheseforward-lookingstatements.Youshouldcarefullyreadthisprospectussupplement,theaccompanyingbaseprospectusandanyrelatedfreewritingprospectus,togetherwiththeinformationincorporatedhereinandthereinbyreferenceasdescribedundertheheading"WhereYouCanFindMoreInformation,"completelyandwiththeunderstandingthatouractualfutureresultsmaybemateriallydifferentfromwhatweexpect.

These forward-looking statements represent our estimates and assumptions only as of the date made. Any such forward-looking statements are notguarantees of future performance and actual results, developments and business decisions may differ from those contemplated by such forward-lookingstatements. We undertake no duty to update these forward-looking statements after the date of this prospectus supplement, except as required by law,even though our situation may change in the future. You should carefully consider other information set forth in reports or other documents that we filewith the SEC. We qualify all of our forward-looking statements by these cautionary statements.

S-3

TableofContents

PROSPECTUS SUPPLEMENT SUMMARY

This summary highlights information contained elsewhere in this prospectus supplement, the accompanying base prospectus and the documentsincorporated by reference. This summary does not contain all of the information that you should consider before deciding to invest in our securities. Youshould read this entire prospectus supplement and the accompanying base prospectus carefully, including the description under the heading "Risk Factors"beginning on page S-8 and our consolidated financial statements and the related notes and the other information incorporated by reference into thisprospectus supplement and the accompanying base prospectus, and any related free writing prospectus before making an investment decision.

Our Company

Wearealeadingproviderofhigh-performancemodularmemorysubsystemsservingcustomersindiverseindustriesthatrequiresuperiormemoryperformancetoempowercriticalbusinessdecisions.Wehavealonghistoryofintroducingdisruptivenewproducts,suchasoneofthefirstloadreduceddualin-linememorymodules("LRDIMM")basedonourdistributedbufferarchitecture,whichhasbeenadoptedbytheindustryforDDR4LRDIMM.WewerealsooneofthefirsttobringNANDflashmemory("NANDflash")tothememorychannelwithourNVvault®non-volatiledualin-linememorymodules("NVDIMM")usingsoftware-intensivecontrollersandmergingdynamicrandomaccessmemoryintegratedcircuits("DRAMICs"or"DRAM")andNANDflashtosolvedatabottleneckanddataretentionchallengesencounteredinhigh-performancecomputingenvironments.WerecentlyintroducedanewgenerationofstorageclassmemoryproductscalledHybriDIMM™toaddressthegrowingneedforreal-timeanalyticsinBigDataapplicationsandin-memorydatabases.

Duetotheground-breakingproductdevelopmentofourengineeringteams,wehavebuiltarobustportfolioofover100issuedandpendingU.S.andforeignpatents,manyseminal,intheareasofhybridmemory,storageclassmemory,rankmultiplicationandloadreduction.Sinceourinceptionin2000,wehavededicatedsubstantialresourcestothedevelopmentandprotectionoftechnologyinnovationsessentialtoourbusiness.Ourearlypioneeringworkintheseareashasbeenbroadlyadoptedinindustry-standardLRDIMMandinNVDIMM.Ourobjectiveistocontinuetoinnovateinourfieldandinvestfurtherinourintellectualpropertyportfolio,withthegoalofmonetizingourintellectualpropertythroughacombinationofproductrevenuesandlicensing,royaltyorotherrevenue-producingarrangements,whichmayresultfromjointdevelopmentorsimilarpartnershipsordefenseofourpatentsthroughenforcementactionsagainstpartieswebelieveareinfringingthem.

InNovember2015,weenteredintoajointdevelopmentandlicenseagreement("JDLA")pursuanttowhichweandSamsunghaveagreedtoworktogethertojointlydevelopnewstorageclassmemorytechnologiesincludingastandardizedproductinterfaceforNVDIMM-Pmemorymodulesinordertofacilitatebroadindustryadoptionofthisnewtechnology.TheJDLAalsoincludescomprehensivecross-licensestoourandSamsung'spatentportfoliosforthepurposeofdevelopingthisproductinterface,grantsSamsungarightoffirstrefusaltoacquireourHybriDIMMtechnologybeforeweofferthetechnologytoathirdparty,andgrantsusaccesstocompetitivelypricedDRAMandNANDflashrawmaterials.TheJDLAalsoprovidedforan$8.0millionnon-recurringengineering("NRE")feethatwereceivedfromSamsungforthejointdevelopmentandcallsforpotentialmarketingcollaborationandfortheexchangeofpotentialmonetaryconsiderationasprogressismadetowardscommercializationofourstorageclassmemoryproduct.Moreover,webelieveSamsungrepresentsanimportantstrategicpartnerwithahighleveloftechnicalcapabilityinmemorythatcanfacilitatebringingourHybriDIMMtechnologytomarket.InconnectionwiththeJDLA,wealsoreceivedgrossproceedsof$15.0millionforourissuanceofaSeniorSecuredConvertibleNote("SVICNote")andStockPurchaseWarranttoSVICNo.28NewTechnologyBusinessInvestmentL.L.P.,anaffiliateofSamsungVentureInvestmentCo.("SVIC").

S-4

TableofContents

Further,inSeptember2016,wetookactiontoprotectanddefendourinnovationsbyfilinglegalproceedingsforpatentinfringementagainstSKhynixandtwoofitssubsidiariesintheU.S.InternationalTradeCommission("ITC")andinU.S.districtcourt.WefiledadditionallegalproceedingsforpatentinfringementagainstSKhynixintheITCandinthecourtsofGermanyandthePeople'sRepublicofChinainJulyandOctoberof2017.InbothofourITCactions,weareseekinganexclusionorderintheITCthatdirectsU.S.CustomsandBorderProtectiontostopallegedlyinfringingSKhynixregistereddualinlinememorymodule("RDIMM")andLRDIMMproductsfromenteringtheUnitedStates.TheevidentiaryhearingintheITCinvestigationsoccurredinMay2017,withafinalinitialdeterminationexpectedtobeissuedbytheITCinNovember2017.IntheU.S.districtcourtandinternationalproceedings,weareprimarilyseekingdamages.OurpatentsinvolvedintheproceedingscoverkeyfeaturesofRDIMMandLRDIMM,whichwebelievearestrategicproductlinesforSKhynixthattogetheraccountforasignificantportionofSKhynix'stotalrevenueandprofits.WehaverecentlytakenstepstosolidifyourpositionandstrategyinconnectionwithourproceedingsagainstSKhynix,includingestablishingafundingarrangementforourlegalcostsassociatedwithcertainoftheseproceedings(includingourfirstITCactionandourU.S.districtcourtproceedings,butexcludingoursubsequentITCactionandourproceedingsininternationalcourts)andadoptingarightsagreementtoimplementastandard"poisonpill."

Werecordedtotalnetrevenuesof$9.0millionand$29.8millionforthethreeandninemonthsendedandSeptember30,2017,respectively,and$19.7millionand$8.0millionfortheyearsendedDecember31,2016andJanuary2,2016,respectively.Wealsoincurrednetlossesof$3.1millionand$10.3millionforthethreeandninemonthsendedSeptember30,2017,respectively,and$11.2millionand$20.5millionforthefiscalyearsendedDecember31,2016andJanuary2,2016,respectively.

Corporate Information

WecommencedoperationsinSeptember2000.Ourprincipalexecutiveofficesarelocatedat175TechnologyDrive,Suite150,Irvine,California92618andourtelephonenumberatthataddressis(949)435-0025.Ourwebsiteaddressishttp://www.netlist.com.Thisreferencetoourwebsiteisaninactivetextualreferenceonlyandtheinformationcontainedonourwebsiteisnotincorporatedbyreferenceinto,anddoesnotformanypartof,thisprospectus.

S-5

TableofContents

THE OFFERING

The following is a brief summary of some of the terms of the offering and is qualified in its entirety by reference to the more detailed informationappearing elsewhere in this prospectus supplement, the accompanying base prospectus and any related free writing prospectus. For a more completedescription of the terms of our common stock, see the description under the heading "Description of Our Capital Stock" in the accompanying baseprospectus.

• 8,605,378sharesofcommonstockissuableuponexerciseofoutstandingoptionshavingaweighted-averageexercisepriceof$1.40,ofwhichapproximately6,124,411havingaweighted-averageexercisepriceof$1.56wereexercisable;

S-6

Commonstockofferedbyus Sharesofourcommonstockhavingaggregategrosssalesproceedsofupto$9,000,000.

Commonstocktobeoutstandingaftertheoffering(1)

83,276,788shares,assumingthesaleof12,857,142sharesatapriceof$0.70pershare,whichwasthelastreportedsalespriceofourcommonstockontheNASDAQCapitalMarketonNovember10,2017.Theactualnumberofsharesissuedinthisoffering,ifany,willvarydependingonanumberoffactors,including,amongotherthings,thepricesatwhichanysharesareactuallysoldinthisoffering.

Mannerofoffering

"Atthemarketoffering"thatmaybemadefromtimetotimethroughtheAgent,assalesagent,subjecttoourinstructionastoamountandtiming.TheAgentisnotrequiredtosellanyspecificprincipalamountoftheNotes,buttheAgentwillmakeallsalesusingcommerciallyreasonableeffortsconsistentwithitsnormaltradingandsalespracticesonmutuallyagreedtermsbetweentheAgentandus.See"PlanofDistribution"onpageS-39.

Useofproceeds

Weexpecttousethenetproceedsfromthisoffering,ifany,forgeneralcorporatepurposes,includingworkingcapitalandothergeneralandadministrativepurposes.Wemayalsouseanynetproceedsfromthisofferingforacquisitionsofcomplementaryproducts,technologiesorbusinesses,butwedonothaveanycurrentplans,agreementsorcommitmentsforanyspecificacquisitionsatthistime.See"UseofProceeds."

Riskfactors

Investinginoursecuritiesinvolvesahighdegreeofrisk.See"RiskFactors"beginningonpageS-8andtheotherinformationincludedorincorporatedbyreferenceinthisprospectussupplement,theaccompanyingbaseprospectus,andanyrelatedfreewritingprospectus,foradiscussionoffactorsyoushouldcarefullyconsiderbeforedecidingtoinvestinourcommonstock.

NASDAQCapitalMarketsymbol

NLST

(1) Thenumberofsharesofourcommonstockoutstandingimmediatelybeforethisofferingisbasedon70,419,646sharesoutstandingasofNovember6,2017andexcludes,asofthatdate,thefollowing:

TableofContents

• 1,037,255sharesofcommonstockavailableforfuturegrantunderourAmendedandRestated2006EquityIncentivePlan,whichamountissubjecttoannualincreasespursuanttothetermsofsuchplan;

• 2,924,184sharesofcommonstockissuableuponexerciseofoutstandingwarrantshavingaweighted-averageexercisepriceof$0.91,ofwhichapproximately2,924,184havingaweighted-averageexercisepriceof$0.91wereexercisable;

• 2,000,000sharesofcommonstockissuableuponexerciseofanoutstandingwarrantthatisexercisableat$0.30pershareupontheredemptionbytheCompanyoftheSVICNotepursuanttothetermsthereof;and

• 12,472,109sharesofcommonstockissuableuponconversionoftheoutstandingprincipalandaccruedinterestundertheSVICNoteataconversionpriceof$1.25pershare.

Unlessotherwisenoted,thecommonstockinformationsetforthaboveandtheotherinformationinthisprospectussupplementreflectsandassumesnoexerciseofoutstandingoptionsorwarrantstopurchaseourcommonstockandnoconversionoftheSVICNoteafterNovember6,2017.

S-7

TableofContents

RISK FACTORS

Investing in our securities involves a high degree of risk. Before purchasing our common stock, you should carefully consider each of the following riskfactors as well as the other information contained in this prospectus supplement, the accompanying base prospectus, any related free writing prospectus and thedocuments incorporated by reference herein or therein, including our consolidated financial statements and the related notes, as updated by our subsequent filingsunder the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Each of these risk factors, either alone or taken together, could adversely affect ourbusiness, operating results and financial condition, as well as adversely affect the value of an investment in our securities. The risks described below are not theonly ones we face. Additional risks of which we are not presently aware or that we currently believe are immaterial may also impair our business operations andfinancial position. If any of the events described below were to occur, our financial condition, our ability to access capital resources, our results of operationsand/or our future growth prospects could be materially and adversely affected and the market price of our common stock could decline. As a result, you could losesome or all of any investment you may have made or may make in our securities.

RISKS RELATED TO THIS OFFERING AND OUR COMMON STOCK

You will experience immediate dilution in the book value per share of the common stock you purchase in this offering.

Becausethepricepershareofourcommonstockbeingofferedissubstantiallyhigherthanthebookvaluepershareofourcommonstock,youwillsuffersubstantialdilutioninthenettangiblebookvalueofthecommonstockyoupurchaseinthisoffering.Ifyoupurchasesharesofcommonstockinthisoffering,youwillsufferimmediateandsubstantialdilutionof$0.66pershareinthenettangiblebookvalueofourcommonstock.Seethedescriptionundertheheading"Dilution"belowforamoredetaileddiscussionofthedilutionyouwillincurifyoupurchasecommonstockinthisoffering.

Our management will have broad discretion over the use of any net proceeds from this offering.

Wecurrentlyanticipateusinganynetproceedsfromthisofferingforgeneralcorporatepurposes,includingworkingcapitalandothergeneralandadministrativepurposes.Wemayalsouseanynetproceedsfromthisofferingforacquisitionsofcomplementaryproducts,technologiesorbusinesses,butwedonothaveanycurrentplans,agreementsorcommitmentsforanyspecificacquisitionsatthistime.Wehavenotreservedorallocatedspecificamountsforanyofthesepurposesandwecannotspecifywithcertaintyhowwewilluseanynetproceeds,andthetimingandamountofouractualexpenditureswillbebasedonmanyfactors,including,amongothers,cashflowsfromoperationsandanygrowthofourbusiness.Accordingly,ourmanagementwillhavebroaddiscretioninapplyinganynetproceedsofthisofferingandyouwillnothavetheopportunity,aspartofyourinvestmentdecision,toassesswhethertheproceedsarebeingusedappropriately.Thenetproceeds,ifany,maybeusedforcorporatepurposesthatdonotincreaseouroperatingresultsormarketvalue.Untilthenetproceeds,ifany,areused,theymaybeplacedininvestmentsthatdonotproduceincomeorthatlosevalue.

Our results of operations fluctuate significantly and are difficult to predict, and any failure to meet investor or analyst expectations could cause the price ofour common stock to decline.

Ouroperatingresultshavefluctuatedsignificantlyinthepast,andweexpecttheywillcontinuetofluctuatefromperiod-to-periodinthefutureduetoavarietyoffactors,manyofwhicharebeyondourcontrol.Factorsrelatingtoourbusinessthatmaycontributetothesefluctuationsinclude,amongothers,theamountandtimingofsalesofproducts,thepriceswechargeforproducts,changesinproductmix,customermixorothersimilarfactors,therateandtimingofourbillingandcollectionscyclesandthetimingandamountofourcommitmentsandotherpayments,aswellastheotherriskfactorsdescribedinthisreport.Inaddition,ourresultsmaybeimpactedbyeventsthatdonotrecur

S-8

TableofContents

regularly,inthesameamountsoratallinotherperiods,includingeventsthatmayresultinourincurrenceofcashornon-cashchargesorgainsincertainperiods.Thesefluctuationsinouroperatingresultsmayrenderperiod-to-periodcomparisonslessmeaningful,andinvestorsshouldnotrelyontheresultsofanyoneperiodasanindicatoroffutureperformance.Ifourresultsofoperationsinanyperiodfallbelowtheexpectationsofsecuritiesanalystsorinvestors,thepriceofourcommonstockcoulddeclinesubstantially.Asaresultofthesignificantfluctuationsofouroperatingresultsinpriorperiods,period-to-periodcomparisonsofouroperatingresultsmaynotbemeaningfulandinvestorsinourcommonstockshouldnotrelyonthesecomparisons.

Our principal stockholders have significant voting power and may take actions that may not be in the best interest of our other stockholders.

AsofNovember6,2017,7.2%ofouroutstandingcommonstockwasheldbyourdirectorsandofficers,including6.9%heldbyChunK.Hong,ourChiefExecutiveOfficerandChairmanofourboardofdirectors.Asaresult,Mr.Honghastheabilitytoexertsubstantialinfluenceoverallmattersrequiringapprovalbyourstockholders,includingtheelectionandremovalofdirectors,anyproposedmerger,consolidationorsaleofallorsubstantiallyallofourassetsandothersignificantcorporatetransactions.ThisconcentrationofcontrolcouldbedisadvantageoustootherstockholderswithinterestsdifferentfromthoseofMr.Hong.

Anti-takeover provisions under our charter documents and Delaware law, as well as our recently adopted rights agreement, could delay or prevent a change ofcontrol and could also limit the market price of our common stock.

OurcertificateofincorporationandbylawscontainprovisionsthatcoulddelayorpreventachangeofcontrolofourCompanyorchangesinourboardofdirectorsthatourstockholdersmightconsiderfavorable.Inaddition,theseanti-takeoverprovisionscouldlimitthepricethatinvestorswouldbewillingtopayforsharesofourcommonstock.Thefollowingareexamplesoftheanti-takeoverprovisionthatareincludedinourcertificateofincorporationandbylawsascurrentlyineffect:

• ourboardofdirectorsisauthorized,withoutpriorstockholderapproval,todesignateandissuepreferredstock,commonlyreferredtoas"blankcheck"preferredstock,whichmayhaverightsseniortothoseofourcommonstock;

• stockholderactionbywrittenconsentisprohibited;

• nominationsforelectiontoourboardofdirectorsandthesubmissionofmatterstobeacteduponbystockholdersatameetingaresubjecttoadvancenoticerequirements;and

• ourboardofdirectorsisexpresslyauthorizedtomake,alterorrepealourbylaws.

Inaddition,wearegovernedbytheprovisionsofSection203oftheDelawareGeneralCorporationLaw,whichmayprohibitcertainbusinesscombinationswithstockholdersowning15%ormoreofouroutstandingvotingstock.Further,inApril2017,weadoptedarightsagreementthatwould,undercertainspecifiedcircumstancesandforsolongastherightsissuedundertherightsagreementareoutstanding,givetheholdersofourcommonstocktherighttoacquireadditionalsharesofourcapitalstock,whichwouldmakeitmoredifficultforathirdpartytoacquireasignificantpercentageofouroutstandingcapitalstockorattemptahostiletakeoverofourCompany.TheseandotherprovisionsinourcertificateofincorporationandbylawsandofDelawarelaw,aswellastheexistenceofourrightsagreement,couldmakeitmoredifficultforstockholdersorpotentialacquirerstoobtaincontrolofourboardofdirectorsorinitiateactionsthatareopposedbyourboardofdirectors,includingamerger,tenderoffer,proxycontestorotherchangeofcontroltransactioninvolvingourCompany.Anydelayorpreventionofachangeofcontroltransactionorchangesinour

S-9

TableofContents

boardofdirectorscouldpreventtheconsummationofatransactioninwhichourstockholderscouldreceiveasubstantialpremiumoverthethen-currentmarketpriceforourcommonstock.

The price and trading volume of our common stock has and may continue to fluctuate significantly.

OurcommonstockhasbeenpubliclytradedsinceNovember2006.Thepriceandtradingvolumeofourcommonstockarevolatileandhaveinthepastfluctuatedsignificantly.Thisvolatilitycouldcontinue,inwhichcaseanactivetradingmarketinourcommonstockmayneverbesustainedandstockholdermaynotbeabletoselltheirsharesatthedesiredtimeorthedesiredprice.Themarketpriceatwhichourcommonstocktradesmaybeinfluencedbymanyfactors,including,amongothers,thefollowing:

• ouroperatingandfinancialperformanceandprospects,includingourabilitytoachieveandsustainprofitabilityinthefuture;

• investorperceptionofusandtheindustryinwhichweoperate;

• theavailabilityandlevelofresearchcoverageofandmarket-makinginourcommonstock;

• changesinearningsestimatesorbuy/sellrecommendationsbyanalysts;

• anyfinancialprojectionswemayprovidetothepublic,anychangestotheseprojectionsorourfailuretomeettheseprojections;

• ourannouncementofsignificantstrategictransactionsorrelationshipsortheinitiationoflegalproceedings,includingpatentinfringementactions;

• theresultsoflegalproceedingsinwhichweareinvolved;

• salesofnewlyissuedcommonstockorothersecuritiesortheperceptionthatsuchsalesmayoccur;and

• generalpolitical,economicandmarketconditions,includingvolatilityoruncertaintyintheseconditions.

Inaddition,sharesofourcommonstockandthepublicstockmarketsingeneralhaveexperienced,andmaycontinuetoexperience,extremepriceandtradingvolumevolatility,attimesirrespectiveofthestateofthebusinessofanyparticularcompany.Thesefluctuationsmayadverselyaffectthemarketpriceofourcommonstock.

In2007,followingadropinthemarketpriceofourcommonstock,securitieslitigationwasinitiatedagainstus.Giventhehistoricvolatilityofoursecuritiesandsecuritiesinourindustry,wemaybecomeengagedinthistypeoflitigationagaininthefuture.Securitieslitigation,likeothertypesoflitigation,isexpensiveandtime-consumingandcouldsubjectustounfavorableresults.

We do not currently intend to pay dividends on our common stock, and any return to investors is expected to come, if at all, only from potential increases in theprice of our common stock.

Weintendtouseallavailablefundstofinanceouroperations.Accordingly,whilepaymentofdividendsrestswithinthediscretionofourboardofdirectors,nocashdividendsonourcommonshareshavebeendeclaredorpaidbyusinthepastandwehavenointentionofpayinganysuchdividendsintheforeseeablefuture.Anyreturntoinvestorsisexpectedtocome,ifatall,onlyfrompotentialincreasesinthepriceofourcommonstock.

S-10

TableofContents

We are not currently in compliance with certain NASDAQ listing requirements, and if we fail to regain compliance by NASDAQ's deadlines we may not beable to maintain our NASDAQ listing.

OnSeptember26,2017,wereceivedaletterfromtheNASDAQStockMarket("NASDAQ")notifyingusthat,becausethebidpriceofourcommonstockclosedbelow$1.00persharefor30consecutivebusinessdays,wearenolongerincompliancewithNASDAQ'sminimumbidpricerule,whichisarequirementforcontinuedlistingontheNASDAQCapitalMarket.Wehavealsoexperiencedseveralotherperiodsofnoncompliancewiththisruleinrecentyears,includingduring2015andintoearly2016andduringAprilandMayof2017.NASDAQ'srulesrequirethatweregaincompliancewiththeminimumbidpricerulebyMarch26,2018,subjecttoourpotentialeligibilityfora180-dayextensionofthisdeadlineifwemeetcertainotherNASDAQlistingstandards.Ifwefailtoregaincompliancewiththeminimumbidpricerulebythedeadline,orifweregaincompliancebutweagainfailtocomplywiththisruleoranyotherNASDAQrequirementinthefuture,thenwewouldreceiveadditionaldeficiencylettersfromNASDAQandourcommonstockcouldbedelistedfromtradingontheNASDAQCapitalMarket.Suchadelistingcouldcauseourcommonstocktobeclassifiedasa"pennystock,"amongotherpotentiallydetrimentalconsequences,andcouldseverelylimittheliquidityofourcommonstockandmateriallyadverselyaffectthepriceofourcommonstock,anyofwhichcouldsignificantlyimpactourstockholders'abilitytoselltheirsharesofourcommonstockortosellthesesharesatapricethatastockholdermaydeemacceptable.

If securities or industry analysts issue an adverse opinion regarding our stock, our stock price and trading volume could decline.

Thetradingmarketforourcommonstockisinfluencedbytheresearchandreportsthatsecuritiesorindustryanalystsmaypublishaboutus,ourbusiness,ourmarketorourcompetitors.Wecurrentlyhavelimitedresearchcoveragebysecuritiesandindustryanalysts.Ifanyoftheanalystswhomaycoveruschangetheirrecommendationregardingourcommonstockadversely,orprovidemorefavorablerelativerecommendationsaboutourcompetitors,thetradingpriceofourcommonstockwouldlikelydecline.IfanyanalystwhomaycoverusweretoceasecoverageofourCompanyorfailortoregularlypublishreportsonus,wecouldlosevisibilityinthefinancialmarkets,whichinturncouldcausethetradingpriceofourcommonstockortradingvolumetodecline.

RISKS RELATED TO OUR BUSINESS

We have historically incurred losses and may continue to incur losses.

Sincetheinceptionofourbusinessin2000,wehaveonlyexperiencedonefiscalyear(2006)withprofitableresults.Inordertoregainprofitability,ortoachieveandsustainpositivecashflowsfromoperations,wemustreduceoperatingexpensesand/orincreaseourrevenuesandgrossmargins.Althoughwehaveinthepastengagedinaseriesofcostreductionactions,suchexpensereductionsalonemaynotmakeusprofitableorallowustosustainprofitabilityifitisachievedandeliminatingorreducingstrategicinitiativescouldlimitouropportunitiesandprospects.Ourabilitytoachieveprofitabilitywilldependonincreasedrevenuegrowthfrom,amongotherthings,monetizationofourintellectualproperty,increaseddemandforourmemorysubsystemsandotherproductofferingsandourabilitytoexpandintonewandemergingmarkets.Wemaynotbesuccessfulinanyofthesepursuitsandwemayneverachieveprofitabilityorsustainprofitabilityifachieved.

We may not have sufficient working capital to fund our planned operations and, as a result, we may need to raise additional capital in the future, which maynot be available when needed, on acceptable terms or at all.

Webelievethat,takingintoaccountourplannedactivitiesandoursourcesofcapital,wehavesufficientcashresourcestosatisfyourcapitalneedsforatleastthenext12months.However,ourestimatesofouroperatingrevenuesandexpensesandworkingcapitalrequirementscouldbeincorrect,

S-11

TableofContents

andwemayuseourcashresourcesfasterthanweanticipate.Further,someorallofourongoingorplannedinvestmentsmaynotbesuccessfulandcouldresultinfurtherlosses.

Ourcapitalrequirementswilldependonmanyfactors,including,amongothers:

• theacceptanceof,anddemandfor,ourproductsandthecomponentproductswereselltocustomersdirectly;

• oursuccess,andthatofourstrategicpartners,indevelopingandsellingproductsderivedfromourtechnology;

• theextentandtimingofanyinvestmentsindeveloping,marketingandlaunchingneworenhancedproductsortechnologies;

• thecostsofdeveloping,improvingandmaintainingourinternaldesign,testingandmanufacturingprocesses;

• thecostsassociatedwithdefendingandenforcingourintellectualpropertyrights;

• ourresultsofoperations,includingourlevelsofnetproductrevenuesandanyotherrevenueswemayreceive,includingNRE,license,royaltyorotherfees;

• theamountandtimingofvendorpaymentsandthecollectionofreceivables,amongotherfactorsaffectingourworkingcapital;

• ourreceiptofcashproceedsfromtheexerciseofoutstandingstockoptionsorwarrantstoacquireourcommonstock;

• thenatureandtimingofacquisitionsandotherstrategictransactionsinwhichweparticipate,ifany;and

• thecostsassociatedwiththecontinuedoperation,andanyfuturegrowth,ofourbusiness.

Weexpecttorelyintheneartermoncashprovidedbyouroperations,fundsraisedpursuanttorecentissuancesofdebtandequitysecurities,suchasourNovember2015issuanceoftheSVICNote,ourSeptember2016andAugust2017publicofferingsofcommonstock,thisoffering,ournewfundingarrangementwithTRGlobalFundingV,LLC,anaffiliateofTRGPCapitalManagement,LLC("TRGP")forcostsassociatedwithcertainofourlegalproceedings,andborrowingavailabilityunderourcreditfacilitywithSiliconValleyBank("SVB").However,ourestimatesofouroperatingrevenuesandexpensesandworkingcapitalrequirementscouldbeincorrect,andwemayuseourcashresourcesfasterthanweanticipate.Further,someorallofourongoingorplannedinvestmentsmaynotbesuccessfulandcouldresultinfurtherlosses.Untilwecangeneratesufficientrevenuestofinanceourcashrequirementsfromouroperations,whichwemayneverdo,wemayneedtoincreaseourliquidityandcapitalresourcesbyoneormoremeasures,whichmayinclude,amongothers,reducingoperatingexpenses,restructuringourbalancesheetbynegotiatingwithcreditorsandvendors,enteringintostrategicpartnershipsoralliances,raisingadditionalfinancingthroughtheissuanceofdebt,equityorconvertiblesecuritiesorpursuingalternativesourcesofcapital,suchasthroughassetortechnologysalesorlicensesorotheralternativefinancingarrangements.Further,evenifournear-termliquidityexpectationsprovecorrect,wemaystillseektoraisecapitalthroughoneormoreofthesefinancingalternatives.However,wemaynotbeabletoobtaincapitalwhenneededordesired,ontermsacceptabletousoratall.

Inadequateworkingcapitalwouldhaveamaterialadverseeffectonourbusinessandoperationsandcouldcauseustofailtoexecuteourbusinessplan,failtotakeadvantageoffutureopportunitiesorfailtorespondtocompetitivepressuresorcustomerrequirements.Alackofsufficientfundingmayalsorequireustosignificantlymodifyourbusinessmodeland/orreduceorceaseouroperations,whichcouldincludeimplementingcost-cuttingmeasuresordelaying,scalingbackoreliminatingsomeorall

S-12

TableofContents

ofourongoingandplannedinvestmentsincorporateinfrastructure,researchanddevelopmentprojects,businessdevelopmentinitiativesandsalesandmarketingactivities,amongotheractivities.Modificationofourbusinessmodelandoperationscouldresultinanimpairmentofassets,theeffectsofwhichcannotbedetermined.Furthermore,ifwecontinuetoissueequityorconvertibledebtsecuritiestoraiseadditionalfunds,ourexistingstockholdersmayexperiencesignificantdilution,andthenewequityordebtsecuritiesmayhaverights,preferencesandprivilegesthataresuperiortothoseofourexistingstockholders.Ifweincuradditionaldebt,itmayincreaseourleveragerelativetoourearningsortoourequitycapitalizationorhaveothermaterialconsequences.Ifwepursueassetortechnologysalesorlicensesorotheralternativefinancingarrangementstoobtainadditionalcapital,ouroperationalcapacitymaybelimitedandanyrevenuestreamsorbusinessplansthataredependentonthesoldorlicensedassetsmaybereducedoreliminated.Moreover,wemayincursubstantialcostsinpursuinganyfuturecapital-raisingtransactions,includinginvestmentbanking,legalandaccountingfees,printinganddistributionexpensesandothersimilarcosts,whichwouldreducethebenefitofthecapitalreceivedfromthetransaction.

We have incurred a material amount of indebtedness to fund our operations, the terms of which have required us to pledge substantially all of our assets assecurity. Our level of indebtedness and the terms of such indebtedness could adversely affect our operations and liquidity.

WehaveincurreddebtunderourconvertiblenoteissuedtoSVIC,ourcreditfacilitywithSVB,andournewfundingarrangementwithTRGP.Inconnectionwiththesedebtandotherarrangements,wehavegrantedsecurityintereststoSVIC,SVBandTRGPinourvariousassets,suchthatallofourtangibleandintangibleassets,includingourcompletepatentportfolio,aresubjecttooneormoreoutstandingliensheldbyoneormoreoftheseparties.TheSVICandSVBdebtinstrumentsandtheTRGPinvestmentagreementcontaincustomaryrepresentations,warrantiesandindemnificationprovisions,aswellasaffirmativeandnegativecovenantsthat,amongotherthings,restrictourabilityto:

• incuradditionalindebtednessorguarantees;

• incurliens;

• makeinvestments,loansandacquisitions;

• consolidateormerge;

• sellorexclusivelylicenseassets,includingcapitalstockofsubsidiaries;

• alterourbusiness;

• changeanyprovisionofourorganizationaldocuments;

• engageintransactionswithaffiliates;

• makecertaindecisionsregardingcertainofouroutstandinglegalproceedingswithoutconsultingwithorobtainingconsentfromcertainoftheseparties;and

• paydividendsormakedistributions.

TheSVICandSVBdebtinstrumentsandtheTRGPinvestmentagreementalsoincludeeventsofdefault,including,amongotherthings,paymentdefaults,anybreachbyusofrepresentations,warrantiesorcovenants,certainbankruptcyeventsandcertainmaterialadversechanges.Ifaneventofdefaultweretooccurunderanyoftheseinstrumentsoragreementsandwewereunabletoobtainawaiverforthedefault,thecounterpartiescould,amongotherremedies,accelerateourobligationsunderthedebtinstrumentorotheragreementandexercisetheirrightstoforecloseontheirsecurityinterests,whichwouldcausesubstantialharmtoourbusinessandprospects.

S-13

TableofContents

Additionally,incurrenceandmaintenanceofthisorotherdebtcouldhavematerialadverseconsequencesonourbusinessandfinancialcondition,suchas:

• requiringustodedicateaportionofourcashflowsfromoperationsandothercapitalresourcestodebtservice,therebyreducingourabilitytofundworkingcapital,capitalexpendituresandothercashrequirements;

• increasingourvulnerabilitytoadverseeconomicandindustryconditions;

• limitingourflexibilityinplanningfororreactingtochangesandopportunitiesinourbusinessandindustry,whichmayplaceusatacompetitivedisadvantage;and

• limitingourabilitytoincuradditionaldebtwhenneeded,onacceptabletermsoratall.

We are and expect to continue to be involved in costly legal and administrative proceedings to enforce or protect our intellectual property rights and to defendagainst claims that we infringe the intellectual property rights of others.

Asiscommoninthesemiconductorindustry,wehaveexperiencedsubstantiallitigationregardingpatentandotherintellectualpropertyrights.WearecurrentlyinvolvedinlitigationandproceedingsattheU.S.PatentandTrademarkOffice("USPTO")andPatentTrialandAppealBoard("PTAB")basedonallegedthird-partyinfringementofourpatents,andlawsuitsclaimingthatweareinfringingothers'intellectualpropertyrightsalsohavebeenandmayinthefuturebebroughtagainstus.

Theprocessofobtainingandprotectingpatentsisinherentlyuncertain.InadditiontothepatentissuanceprocessestablishedbylawandtheproceduresoftheUSPTO,wemustcomplywithadministrativeproceduresoftheJointElectronDeviceEngineeringCouncil("JEDEC")toprotectourintellectualpropertywithinitsindustrystandard-settingprocess.Theseproceduresevolveovertime,aresubjecttovariabilityintheirapplicationandmaybeinconsistentwitheachother.FailuretocomplywiththeUSPTO'sorJEDEC'sadministrativeprocedurescouldjeopardizeourabilitytoclaimthatourpatentshavebeeninfringed.

Ourbusinessstrategyincludeslitigatingclaimsagainstothers,suchasourcompetitors,customersandformeremployees,toenforceourintellectualproperty,contractualandcommercialrightsincluding,inparticular,ourpatentportfolioandourtradesecrets,aswellastochallengethevalidityandscopeoftheproprietaryrightsofothers.Thisorothersimilarproceedingscouldalsosubjectustocounterclaimsorcountersuitsagainstus,orthepartieswesuecouldseektoinvalidateourpatentsorotherintellectualpropertyrightsthroughreexaminationorsimilarprocessesattheUSPTOorsimilarbodies.Moreover,anylegaldisputeswithcustomerscouldcausethemtoceasebuyingorusingourproductsorthecomponentproductswereselltocustomersdirectlyordelaytheirpurchaseoftheseproductsandcouldsubstantiallydamageourrelationshipwiththem.

Makinguseofnewtechnologiesandenteringnewmarketsincreasesthelikelihoodthatothersmightallegethatourproductsorthecomponentproductsweresellinfringeontheirintellectualpropertyrights.Thelikelihoodofthistypeoflawsuitmayalsobeincreasedduetothelimitedpoolofexperiencedtechnicalpersonnelthatwecandrawupontomeetourhiringneeds.Asaresult,anumberofourexistingemployeeshaveworkedforourexistingorpotentialcompetitorsatsomepointduringtheircareers,andweanticipatethatanumberofourfutureemployeeswillhavesimilarworkhistories.Moreover,lawsuitsofthistypemaybebrought,evenifthereisnomerittotheclaim,asastrategytopreventusfromhiringqualifiedcandidates,drainourfinancialresourcesanddivertmanagement'sattentionawayfromourbusiness.

S-14

TableofContents

Litigationisinherentlyuncertain.Anadverseoutcomeinexistingoranyfuturelitigationcouldforceusto,amongotherthings:

• relinquishpatentsorotherprotectionsofourtechnologiesiftheyareinvalidated,whichwouldenableourcompetitorsandotherstofreelyusethistechnology;

• competewithproductsthatrelyupontechnologiesandotherintellectualpropertyrightsthatwehavedevelopedandthatwebelievewehavetherighttoprotectfromthird-partyuse;

• accepttermsofanarrangementtolicenseourtechnologiestoathirdpartythatarenotasfavorableaswemightexpect;

• ceasemanufacturingand/orsellingproductsorusingcertainprocessesthatareclaimedtobeinfringingathirdparty'sintellectualproperty;

• paydamages(whichinsomeinstancesmaybethreetimesactualdamages),includingroyaltiesonpastorfuturesales,ifwearefoundtoinfringeathirdparty'sintellectualproperty;

• seekalicensefromathird-partyintellectualpropertyownertouseitstechnologyinourproductsorthecomponentproductsweresell,whichmaynotbeavailableonreasonabletermsoratall;or

• redesignanyproductsthatareclaimedtobeinfringingathirdparty'sintellectualproperty,whichmaynotbepossibletodoinatimelymanner,withoutincurringsignificantcostsoratall.

Moreover,anylitigation,regardlessofitsoutcome,wouldinvolveasignificantdedicationofresources,includingtimeandcosts,woulddivertmanagement'stimeandattentionandcouldnegativelyimpactourresultsofoperations.Asaresult,anycurrentorfutureinfringementclaimsbyoragainstthirdpartiescouldmateriallyadverselyaffectourbusiness,financialconditionorresultsofoperations.

We are and expect to continue to be involved in legal proceedings at the ITC and related enforcement actions to stop allegedly infringing SK hynix RDIMMand LRDIMM products from entering the United States, as well as legal proceedings in district court to seek damages for the alleged patent infringement. Ourinvolvement in these proceedings, as well as steps we have taken to implement certain of our strategies in connection with these proceedings, subject us to anumber of risks.

OnSeptember1,2016,wetookactiontoprotectanddefendourinnovationsbyfilinglegalproceedingsforpatentinfringementagainstSKhynix,andtwoofitssubsidiariesintheITCandindistrictcourt.WeareseekinganexclusionorderintheITCthatdirectsU.S.CustomsandBorderProtectiontostopallegedlyinfringingSKhynixRDIMMandLRDIMMproductsfromenteringtheUnitedStates.ITCinvestigationstypicallyproceedonanexpeditedbasis.TheevidentiaryhearingintheITCinvestigationoccurredinMay2017,withafinalinitialdeterminationexpectedtobeissuedbytheITCinNovember2017,buttherecanbenoguaranteethatourproceedingswillfollowsuchatimeline.

Intellectualpropertylitigationisexpensiveandtime-consuming,regardlessofthemeritsofanyclaim,andcoulddivertmanagement'sattentionfromoperatingourbusiness.EvenifwearesuccessfulattheITC,wewouldthenneedtoenforcetheorderwhichisexpensive,timeconsumingandcoulddivertmanagement'sattentionfromoperatingourbusiness.Inaddition,lawsuitsintheITCandindistrictcourtsaresubjecttoinherentuncertaintiesduetothecomplexityofthetechnicalissuesinvolved,andwemaynotbesuccessfulinouractions.Moreover,ifwearecountersuedbySKhynixandlosethesuit,wecouldberequiredtopaysubstantialdamagesorlosesomeofourintellectualpropertyprotections.Furthermore,wemaynotbeabletoreachasettlementwithSKhynixtolicenseourpatentportfolio,andevenifweareabletoreachasettlement,thetermsofthearrangementmaynotbeasfavorableasweanticipated.Anyoftheforegoingcouldcauseustoincursignificantcosts,

S-15

TableofContents

decreasetheperceivedvalueofourintellectualpropertyandmateriallyadverselyaffectourbusiness,financialconditionorresultsofoperations.

WehaverecentlytakenstepstosolidifyourpositionandstrategyinconnectionwithourproceedingsagainstSKhynix.InMay2017,weestablishedafundingarrangementwithTRGP,whichgenerallyprovidesthatTRGPwilldirectlyfundthecostsincurredbyusoronourbehalfinconnectionwithcertainofourSKhynixproceedings(includingourfirstITCactionandourU.S.districtcourtproceedings,butexcludingoursubsequentITCactionandourproceedingsininternationalcourts),andinexchangeforsuchfunding,wehaveagreedtopaytoTRGPtheamountofitsfundingplusanescalatingpremiumstartingatalow-to-middouble-digitpercentageoftheamountofitsfundingifandwhenwerecoveranyproceedsfromthefundedproceedings,andwehavegrantedtoTRGPafirstprioritylienontheclaimsunderlyingthefundedproceedingsandanyproceedsreceivedfromthefundedproceedingsandasecondprioritylienonourpatentsthatarethesubjectofthefundedproceedings.WeestablishedthisfundingarrangementinordertoprovideuswithincreasedsecuritythatwewillbeabletovigorouslypursueourclaimsagainstSKhynixthroughtheirfinalresolution,butthearrangementalsoinvolvescertainrisks,including,amongothers,ourobligationtouseaportionofanyproceedswemayreceivefromtheseproceedingstorepaythefundedamountsatapremium,whichpremiumwouldincreasethelongertheproceedingsremainunresolved,andourobligationtoconsultwithorobtainconsentfromTRGPinconnectionwithcertaindecisionsorothermattersrelatingtotheSKhynixproceedings.

Inaddition,inApril2017,weadoptedashort-termrightsagreementtoimplementastandard"poisonpill."Ingeneralterms,forsolongastherightsissuedundertherightsagreementareoutstanding,whichisexpectedtobenolongerthan12months,therightsagreementpreventsanypersonorgroupfromacquiringasignificantpercentageofouroutstandingcapitalstockorattemptingahostiletakeoverofourCompanybysignificantlydilutingtheownershippercentageofsuchpersonorgroup.Asaresult,therightsagreementhasasignificantanti-takeovereffect.OurboardofdirectorsapprovedtherightsagreementaspartofourstrategyinconnectionwithourproceedingsagainstSKhynix,withtheintentofdisconnectingourmarketcapitalizationfromthedamagescalculationsandanysettlementnegotiationsthatmaydevelopinconnectionwiththeseproceedings.However,therightsagreementmaynothavetheintended,orany,impactontheseproceedingsoranyrelatedsettlementnegotiations,butwouldhavetheanti-takeovereffectofanystandard"poisonpill"andthuswouldinvolvetherisksassociatedwiththeseanti-takeovereffects,whicharedescribedelsewhereintheseriskfactors.

We may be unsuccessful in monetizing our intellectual property portfolio.

Wehavededicatedsubstantialresourcestothedevelopmentandprotectionoftechnologyinnovationsessentialtoourbusiness,andweexpecttheseactivitiestocontinuefortheforeseeablefuture.Wealsointendtoaggressivelypursuemonetizationavenuesforourintellectualpropertyportfolio,potentiallyincludinglicensing,royaltyorotherrevenue-producingarrangements.However,ourrevenuesarecurrentlygeneratedbyresalesofcomponentproductsandsalesofourproductsandwemayneverbesuccessfulingeneratingarevenuestreamfromourintellectualproperty,inwhichcaseourinvestmentsoftime,capitalandotherresourcesintoourintellectualpropertyportfoliomaynotprovideadequate,orany,returns.

Althoughwemaypursueagreementswiththirdpartiestocommerciallylicensecertainofourproductsortechnologies,wemayneversuccessfullyenterintoanysuchagreement.Further,thetermsofanysuchagreementsthatwemayreachwiththird-partylicenseesareuncertainandmaynotprovidesufficientroyaltyorotherlicensingrevenuestoustojustifyourcostsofdevelopingandmaintainingthelicensedintellectualpropertyormayotherwiseincludetermsthatarenotfavorabletous.Additionally,thepursuitoflicensingarrangementswouldrequirebyitsnaturethatwerelinquishcertainofourrightstoourtechnologiesandintellectualpropertythatwelicensetothirdparties,whichcouldlimit

S-16

TableofContents

ourabilitytobaseourownproductsonsuchtechnologiesorcouldreducetheeconomicvaluethatwereceivefromsuchtechnologiesandintellectualproperty.Additionally,theestablishmentofarrangementstomonetizeourintellectualpropertymaybemoredifficultorcostlythanexpected,mayrequireadditionalpersonnelandinvestmentsandmaybeasignificantdistractionformanagement.Inconnectionwithanymonetizationavenueswemaydevelop,ourlicensesandroyaltyrevenuemaybeuncertainfromperiodtoperiodandwemaybeunabletoattractsufficientlicensingcustomers,whichwouldmateriallyandadverselyaffectourresultsofoperations.

Ourabilitytoestablishlicensing,royaltyorsimilarrevenues,andmaintainorincreaseanysuchrevenuesweareabletoestablish,dependsonavarietyoffactors,includingthenovelty,utility,performance,quality,breadth,depthandoverallperceivedvalueofourintellectualpropertyportfolio,allascomparedtothatofourcompetitors,aswellasoursalesandmarketingcapabilities.Ifsecured,licensingorroyaltyrevenuesmayalsobenegativelyaffectedbyfactorswithinandoutsideourcontrol,includingreductionsinourcustomers'salesprices,salesvolumesandthetermsofthelicensearrangements.Ifwearenotsuccessfulinmonetizingourintellectualpropertyportfolio,wemayneverrecoupthecostsassociatedwithdeveloping,maintaining,defendingandenforcingthisportfolioandourfinancialconditionandprospectswouldbeharmed.

The vast majority of our revenues in recent periods have been generated from resales of component products, including products sourced from Samsung, andany decline in our resales of these products could significantly harm our performance.

Thevastmajorityofourrevenuesinrecentperiodshavebeengeneratedfromresalesofcomponentproducts,includingprimarilyNANDflashthatwepurchaseforthepurposeofresalefromSamsungandalternativesuppliers.ForourfiscalyearendedDecember31,2016andtheninemonthsendedSeptember30,2017,resalesofthesecomponentproductsaccountedforapproximately21%and86%ofournetproductrevenues,respectively.Wepurchasemanyoftheseproducts,includingprimarilyNANDflash,fromSamsungunderthetermsofourJDLAwithSamsunginordertoreselltheseproductstoend-customersthatarenotreachedinSamsung'sdistributionmodel,includingstoragecustomers,appliancecustomers,systembuildersandcloudanddatacentercustomers.WehavealsosourcedtheseproductsfromalternativesupplierstotheextentsufficientproductisnotavailablefromSamsungtomeetcustomerdemand.

Thesecomponentproductresalesaresubjecttoanumberofrisks.Forexample,demandfortheseproductscoulddeclineatanytimeforanumberofreasons,including,amongothers,productobsolescence,introductionofmoreadvancedorotherwisesuperiorcompetingproductsbyourcompetitors,theabilityofourcustomerstoobtaintheseproductsorsubstituteproductsfromalternatesources,customersreducingtheirneedfortheseproductsgenerally,ortheotherriskfactorsdescribedinthisprospectussupplement.Further,wehavenolong-termpurchaseagreementsorothercommitmentswithrespecttosalesoftheseoranyofourotherproducts.Asaresult,demandfortheseproductsfromuscoulddeclineatanytime,andanyreducedsalesoftheseproductscouldmateriallyadverselyimpactourrevenues.Inaddition,increasedresalesofcomponentproductsasapercentageofourtotalproductrevenueshaveasignificantnegativeimpactonourgrossmargin,asthecostofthecomponentproductswepurchaseforresalefromSamsungoralternativesuppliersisaddedtoourcostofsalesfortheseproducts.Asaresult,ourgrossmarginontheresaleofcomponentproductsissignificantlylowerthanourgrossmarginonsalesofourownproducts.Further,totheextentwearenotabletoprocuresufficientcomponentproductsforresalefromSamsungunderthetermsoftheJDLAtosatisfycustomerordersfortheseproducts,wewouldneedtoseektoprocuretheseproductsfromalternativesuppliers,whichmaynotbeavailableontermscomparabletothosewehavenegotiatedwithSamsungundertheJDLAandmaybesubjecttoothersupplyandmanufacturingrisksdiscussedelsewhereintheseriskfactors.Asaresult,anyinabilitytosourcesufficientcomponentproductsfromSamsungcouldincreaseourcostofsalesassociatedwithresalesoftheseproductsifwe

S-17

TableofContents

areforcedtopayhigherpricestoobtaintheseproductsfromothersuppliers.Theoccurrenceofanyoneormoreoftheseriskscouldcauseourperformancetomateriallysuffer

Our performance has historically been substantially dependent on sales of NVvault, and we may never be able to replace the revenues lost from the rapiddecline in NVvault sales in recent periods.

WehavehistoricallybeensubstantiallydependentonsalesofourNVDIMMusedincache-protectionanddata-loggingapplications,includingourNVvaultbattery-free,theflash-basedcachesystem.ForourfiscalyearsendedDecember27,2014andJanuary2,2016,salesofNVvaultaccountedfor44%and20%oftotalnetproductrevenues,respectively.However,wehaveexperiencedasharpdeclineinNVvaultsalesinrecentperiods,andsalesofNVvaultaccountedforonly1%and0.3%oftotalnetproductrevenuesinourfiscalyearendedDecember31,2016andtheninemonthsendedSeptember30,2017,respectively.ThisrapiddeclinehasbeendueinlargeparttothelossofourformermostsignificantNVvaultcustomer,Dell,beginningin2012.WerecognizednoNVvaultsalestoDellintheyearendedDecember31,2016ortheninemonthsendedSeptember30,2017,andweexpectnofuturedemandfromDellfortheseproducts.InordertoleverageourNVvaulttechnologyandsecureoneormorenewkeycustomers,wecontinuetopursueadditionalqualificationsofNVvaultwithotheroriginalequipmentmanufacturers("OEMs")andtotargetnewcustomerapplications,suchasonlinetransactionprocessing,virtualization,BigDataanalytics,highspeedtransactionprocessing,high-performancedatabaseapplicationsandin-memorydatabaseapplications.WealsointroducedEXPRESSvaultinMarch2011andthenext-generationofEXPRESSvault(EV3)inJuly2015,andwecontinuetopursuequalificationofthenext-generationDDR3NVvaultandDDR4NVvaultwithcustomers.OurfutureoperatingresultswilldependonourabilitytocommercializetheseNVvaultproductextensions,aswellasourotherproductssuchasHybriDIMMandotherhigh-densityandhigh-performancesolutions.However,HybriDIMMisstillunderdevelopmentandmayrequireadditionalinvestmentandtheservicesandattentionofkeyemployeeswhohavecompetingdemandsontheiravailabletime.Further,althoughwebelieveourJDLAwithSamsungmayadvancethedevelopmentofourHybriDIMMproduct,ourpartnershipwithSamsungandanyotherstepswetaketofurtherthedevelopmentofthisoranyofourotherproductscouldfail.Moreover,therateanddegreeofcustomeradoptionofourNVvaultproductextensionsandothernext-generationproductshasbeenslowerandsmallerthanexpectedtodate,andtheseproductsmaynevergainsignificantcustomerormarketacceptance.Ifwearenotsuccessfulinexpandingourqualificationsormarketinganyneworenhancedproducts,wemayneverbeabletosecurerevenuessufficienttoreplacelostNVvaultrevenuesandourresultsofoperationsandprospectscouldbemateriallyharmed.

We are subject to risks relating to our focus on developing our HybriDIMM and NVvault products and a lack of market diversification.

Wehavehistoricallyderivedasubstantialportionofourrevenuesfromsalesofourhigh-performancemodularmemorysubsystemstoOEMsintheserver,high-performancecomputingandcommunicationsmarkets,aswellasfromsalesofcomponentproductstostoragecustomers,appliancecustomers,systembuildersandcloudanddatacentercustomers.Althoughweexpectthesememorysubsystemstocontinuetoaccountforaportionofourrevenues,wehaveexperienceddeclinesinsalesoftheseproductsinrecentperiodsandthesedeclinescouldcontinueorintensifyinthefuture.Webelievethatmarketacceptanceoftheseproductsorderivativeproductsthatincorporateourcorememorysubsystemtechnologyiscriticaltooursuccess,andanycontinueddeclineinsalesoftheseproductscouldhaveamaterialadverseimpactonourperformanceandlong-termprospects.

Wehaveinvestedsignificantresearchanddevelopmenttimeandcostsintothedesignofapplication-specificintegratedcircuits("ASIC")andhybriddevices,includingourNVvaultfamilyof

S-18

TableofContents

productsandmostrecentlyournext-generationHybriDIMMmemorysubsystem.Theseproductsaresubjecttoincreasedrisksascomparedtoourlegacyproducts.Forexample:

• wearedependentonalimitednumberofsuppliersfortheDRAMICs,NANDflashandASICdevicesthatareessentialtothefunctionalityoftheseproducts,andinthepastwehaveexperiencedsupplychaindisruptionsandshortagesofDRAMandNANDflashrequiredtocreateourNVvaultfamilyofproductsasaresultofissuesthatarespecifictooursuppliersortheindustryasawhole;

• ourproductsaregenerallysubjecttoaproductapprovalandqualificationprocesswithcustomersbeforepurchasesaremadeandwehaveexperiencedalongerqualificationcyclethananticipatedwithsomeoftheseproducts,includingourHyperCloudmemorysubsystems;

• ourNVvaultproductsorothernewproductssuchasHybriDIMMmaycontaincurrentlyundiscoveredflaws,thecorrectionofwhichcouldresultinincreasedcostsandtimetomarket;and

• wearerequiredtodemonstratethequalityandreliabilityofourproductstoandqualifythemwithourcustomers,whichrequiresasignificantinvestmentoftimeandresourcespriortothereceiptofanyrevenuesfromthesecustomers.

Theseandotherrisksattendanttotheproductionofourmemorysubsystemproductscouldimpairourabilitytoobtaincustomerormarketacceptanceoftheseproductsorobtainsuchacceptanceinatimelymanner,whichwouldreduceourachievablerevenuesfromtheseproductsandlimitourabilitytorecoupourinvestmentsintheproducts.

Additionally,ifthedemandforserversdeterioratesorifthedemandforourproductstobeincorporatedinserverscontinuestodecline,ouroperatingresultswouldbeadverselyaffected,andwewouldbeforcedtodiversifyourproductportfolioandourtargetmarketsinordertoreplacerevenueslostfromdecreasedsalesoftheseproducts.Wemaynotbeabletoachievethisdiversification,andourinabilitytodosomayadverselyaffectourbusiness,operatingperformanceandprospects.

Sales to a small number of varying customers have historically represented a significant portion of our net product revenues, and the loss of, or a significantreduction in sales to, any one of these customers could materially harm our business.

Salestosmallnumbersofcustomershavehistoricallyrepresentedasubstantialportionofournetproductrevenues.Additionally,thecompositionofmajorcustomersandtheirrespectivecontributionstoournetproductrevenueshavefluctuatedandwilllikelycontinuetofluctuatefromperiodtoperiodasourexistingandprospectivecustomersprogressthroughthelifecycleoftheproductstheyproduceandsellandexperienceresultingfluctuationsintheirproductdemand.Forinstance,approximately13%and10%ofournetproductrevenuesinthethreemonthsendedSeptember30,2017weretotwocustomers,eachofwhichrepresentedlessthan10%ofournetproductrevenuesintheninemonthsendedSeptember30,2017andinallperiodsin2016.Additionally,inthethreeandninemonthsendedOctober1,2016,approximately17%and17%,and29%and10%ofournetproductrevenuesintherespectiveperiodsweretotwocustomers,neitherofwhichpurchasedmanyproductsorcontributedameaningfulportionofourrevenuesinthecorresponding2017periods.

Wedonothavelong-termagreementswithanyofourcustomersand,asresult,anyorallofthemcoulddecideatanytimetodiscontinue,decreaseordelaytheirpurchaseofourproductsorthecomponentproductswereselldirectly.Inaddition,thepricescustomerspayforproductscouldchangeatanytime.Further,wemaynotbeabletosellsomeofourproductsdevelopedforonecustomertoadifferentcustomerbecauseourproductsareoftencustomizedtoaddressspecificcustomerrequirements,andevenifweareabletoselltheseproductstoanothercustomer,ourmarginontheseproductsmaybereduced.Additionally,althoughcustomersaregenerallyallowedonlylimitedrightsof

S-19

TableofContents

returnafterpurchasingourproductsorthecomponentproductsweresell,wemaydeterminethatitisinourbestinteresttoacceptreturnsfromcertainlargeorkeycustomersevenifwearenotcontractuallyobligatedtoaccepttheminordertomaintaingoodrelationswiththesecustomers.Anyreturnsbeyondourexpectationscouldnegativelyimpactouroperatingresults.Moreover,becauseafewcustomersoftenaccountforasubstantialportionofournetproductrevenues,thefailureofanyoneofthesecustomerstopayonatimelybasiswouldnegativelyimpactourcashflows.Asaresult,thelossofanyofourcustomers,particularlyourlargeorkeycustomers,areductioninsalestoorsalepricesforanyofthem,includingasaresultofnormalfluctuationsinproductdemandorotherfactors,ordifficultiescollectingpaymentsfromanyofthemcouldsignificantlyreduceournetproductrevenuesandadverselyaffectouroperatingresults.

Ourabilitytomaintainorincreaseournetproductrevenuestoourkeycustomersdependsonavarietyoffactors,manyofwhicharebeyondourcontrol.Thesefactorsincludeourcustomers'continuedsalesofserversandothercomputingsystemsthatincorporateourmemorysubsystemsandourcustomers'continuedincorporationofourproductsorthecomponentproductswereselltothesecustomersdirectlyintotheirsystems.Becauseoftheseandotherfactors,salestothesecustomersmaynotcontinueandtheamountofsuchsalesmaynotreachorexceedhistoricallevelsinanyfutureperiod.

We are subject to risks of disruption in the supply of component products.

Ourabilitytofulfillcustomerordersfororproducequalificationsamplesofourproductsisdependentonasufficientsupplyoffield-programmablegatearrays("FPGAs"),ASICs,DRAMICsandNANDflash,whichareessentialcomponentsofourmemorysubsystems.Inaddition,wepurchasesomeofthesecomponentproductsfromSamsungunderthetermsoftheJDLAandfromalternativesuppliersforthepurposeofresaletoend-customersthatarenotreachedinSamsung'sdistributionmodel.Wehavenolong-termsupplycontractsforanyofthesecomponentproducts.Further,therearearelativelysmallnumberofsuppliersofthesecomponentsandwetypicallypurchasefromonlyasubsetofthesesuppliers.Asaresult,ourinventorypurchaseshavehistoricallybeenconcentratedinasmallnumberofsuppliers,includinganaffiliateofSamsung,fromwhichweobtainedalargeportionofourtotalinventorypurchasesin2016andthefirstninemonthsof2017.Wealsouseconsumablesandothercomponents,includingprintedcircuitboards("PCBs"),tomanufactureourmemorysubsystems,whichwesometimesprocurefromsingleorlimitedsourcestotakeadvantageofvolumepricingdiscounts.

Fromtimetotime,shortagesinDRAMICsandNANDflashhaverequiredsomesupplierstolimitthesupplyofthesecomponents.Inthepast,wehaveexperiencedsupplychaindisruptionsandshortagesofDRAMandNANDflashrequiredtocreateourHyperCloud,NVvaultandPlanarXverylowprofile("VLP")products,andwehavebeenforcedtoprocurecomponentproductsthatwereselltocustomersdirectlyfromalternativesupplierstotheextentwearenotabletoprocurefromSamsungsufficientquantitiesoftheseproductstosatisfycustomerorders.Wearecontinuallyworkingtosecureadequatesuppliesofthecomponentsnecessarytofillcustomers'ordersinatimelymanner.IfweareunabletoobtainasufficientsupplyofDRAMICs,NANDflashorotheressentialcomponentstoavoidinterruptionsinthedeliveryofourproductsasrequiredbyourcustomersorthedeliveryofthesecomponentstocustomerstowhomweresellthemdirectly,thesecustomersmayreducefutureordersfortheseproductsornotpurchasetheseproductsfromusatall,whichwouldcauseournetproductrevenuestodeclineandharmouroperatingresults.Inaddition,ourreputationcouldbeharmedduetofailurestomeetourcustomers'demandsand,evenassumingwearesuccessfulinresolvingsupplychaindisruptions,wemaynotbeabletoreplaceanylostbusinessandwemaylosemarketsharetoourcompetitors.Further,ifoursuppliersareunabletoproducequalificationsamplesofourproductsonatimelybasisoratall,wecouldexperiencedelaysinthequalificationprocesswithexistingorprospectivecustomers,whichcouldhaveasignificantimpactonourabilitytosellourproducts.

S-20

TableofContents

Moreover,ifwearenotabletoobtainthesecomponentsintheamountsneededonatimelybasisandatcommerciallyreasonableprices,wemaynotbeabletodeveloporintroducenewproducts,wemayexperiencesignificantincreasesinourcostofsalesifweareforcedtoprocurethesecomponentsfromalternativesuppliersandarenotabletonegotiatefavorabletermswiththesesuppliers,orwemaybeforcedtoceaseourresalesofcomponentsweselltocustomersdirectly.

Ourdependenceonasmallnumberofsuppliersandthelackofanyguaranteedsourcesfortheessentialcomponentsofourproductsandthecomponentswereselltocustomersdirectlyexposeustoseveralrisks,includingtheinabilitytoobtainanadequatesupplyofthesecomponents,increasesintheircosts,deliverydelaysandpoorquality.Additionally,ourcustomersqualifycertainofthecomponentsprovidedbyoursuppliersforuseintheirsystems.Ifoneofoursuppliersexperiencesqualitycontrolorotherproblems,itmaybedisqualifiedbyoneormoreofourcustomers.Thiswoulddisruptoursuppliesofthesecomponents,andwouldalsoreducethenumberofsuppliersavailabletousandmayrequirethatwequalifyanewsupplier,whichwemaynotbeabletodo.

DeclinesincustomerdemandforourproductsinrecentperiodshavecausedustoreduceourpurchasesofDRAMICsandNANDflashforuseascomponentsinourproducts.Suchdeclinesorotherfluctuationscouldcontinueinthefuture.Ifwefailtomaintainsufficientpurchaselevelswithsomesuppliers,ourabilitytoobtainsuppliesoftheserawmaterialsmaybeimpairedduetothepracticeofsomesupplierstoallocatetheirproductstocustomerswiththehighestregulardemand.

Frequenttechnologychangesandtheintroductionofnext-generationversionsofthesecomponentproductsmayalsoresultintheobsolescenceofourinventoryon-hand,whichcouldinvolvesignificanttimeandcoststoreplace,reduceournetproductrevenuesandgrossmarginandadverselyaffectouroperatingperformanceandfinancialcondition.

Our customers require that our products undergo a lengthy and expensive qualification process without any assurance of sales.

Ourprospectivecustomersgenerallytestandevaluateourmemorysubsystemsbeforepurchasingourproductsandintegratingthemintotheirsystems.Thisextensivequalificationprocessinvolvesrigorousreliabilitytestingandevaluationofourproducts,whichmaycontinueforninemonthsorlongerandisoftensubjecttodelays.Inadditiontoqualificationofspecificproducts,someofourcustomersmayalsorequireustoundergoatechnologyqualificationifourproductdesignsincorporateinnovativetechnologiesthatthecustomerhasnotpreviouslyencountered.Suchtechnologyqualificationsoftentakesubstantiallylongerthanproductqualificationsandcantakeoverayeartocomplete.Qualificationbyaprospectivecustomerdoesnotensureanysalestothatprospectivecustomer,inwhichcasewewouldreceivenoorlimitedrevenuesinspiteofourinvestmentoftimeandotherresourcesinthisqualificationprocess,whichcouldadverselyaffectouroperatingresults.

Evenaftersuccessfulqualificationandsalesofourproductstoacustomer,becausethequalificationprocessisbothproduct-specificandplatform-specific,ourexistingcustomerssometimesrequireustore-qualifyourproductsortoqualifyournewproductsforuseinnewplatformsorapplications.Forexample,asourOEMcustomerstransitionfrompriorgenerationarchitecturestocurrentgenerationarchitectures,wemustdesignandqualifynewproductsforusebythesecustomers.Inthepast,thisdesignandqualificationprocesshastakenuptoninemonthstocomplete,duringwhichtimeournetproductrevenuesfromthesecustomersdeclinedsignificantly.Additionally,afterourproductsarequalifiedwithexistingornewcustomers,thecustomermaytakeseveralmonthstobeginpurchasingtheproductormaydecidenottopurchasetheproductatall.

Likewise,changesinourproducts,ourmanufacturingfacilities,ourproductionprocessesorourcomponentsuppliersmayrequireanewqualificationprocess.Forexample,whenourmemoryandNANDflashcomponentvendorsdiscontinueproductionofcomponents,itmaybenecessaryforustodesignandqualifynewproductsforourcustomers.Asaresult,somecustomersmayrequireus,orwe

S-21

TableofContents

maydecide,topurchaseanestimatedquantityofdiscontinuedmemorycomponentsnecessarytoensureasteadysupplyofexistingproductsuntilproductswithnewcomponentscanbequalified.Purchasesofthisnaturemayaffectourliquidity.Additionally,ourestimationofquantitiesrequiredduringthetransitionmaybeincorrect,whichcouldadverselyimpactourresultsofoperationsthroughlostrevenueopportunitiesorchargesrelatedtoexcessandobsoleteinventory.

Wemustdevotesubstantialresources,includingdesign,engineering,sales,marketingandmanagementefforts,toqualifyourproductswithprospectivecustomersinanticipationofsales.Significantdelaysorotherdifficultiesinthequalificationprocesscouldresultinaninabilitytokeepupwithrapidtechnologychangeornew,competitiveproducts.Ifwedelayordonotsucceedinqualifyingaproductwithanexistingorprospectivecustomer,wewouldnotbeabletosellthatproducttothatcustomer,whichmayresultinourholdingexcessandobsoleteinventoryandcouldreduceournetproductrevenuesandcustomerbase,anyofwhichcouldmateriallyharmouroperatingresultsandbusiness.

If we are unable to timely and cost-effectively develop new or enhanced products that meet our customers' requirements and achieve market acceptance ortechnologies that we can monetize, our revenues and prospectus could be materially harmed.

Ourindustryischaracterizedbyrapidtechnologicalchange,evolvingindustrystandardsandrapidproductobsolescence.Asaresult,continuousdevelopmentofnewtechnology,processesandproductinnovationsisnecessaryinordertobesuccessful.Webelievethatthecontinuedandtimelydevelopmentofnewproductsandimprovementofexistingproductsarecriticaltoourbusinessandprospectsforgrowth.

Inordertodevelopandintroduceneworenhancedproductsandtechnologies,weneedto:

• retainandcontinuetoattractnewengineerswithexpertiseinhigh-performancemodularmemorysubsystemsandourkeytechnologycompetencies;

• identifyandadjusttothechangingrequirementsofourexistingandpotentialfuturecustomers;

• identifyandadapttoemergingtechnologicaltrendsandevolvingindustrystandardsinourmarkets;

• continuetodevelopandenhanceourdesigntools,manufacturingprocessesandothertechnologiesthatallowustoproduceattractiveandcompetitiveproducts;

• designandintroducecost-effective,innovativeandperformance-enhancingfeaturesthatdifferentiateourproductsandtechnologiesfromthoseofourcompetitors;

• securelicensestoenableustouseanytechnologies,processesorotherrightsessentialtothemanufactureoruseofanynewproductswemaydesign,whichlicensesmaynotbeavailablewhenneeded,onacceptabletermsoratall;

• maintainordevelopnewrelationshipswithsuppliersofcomponentsrequiredforanyneworenhancedproductsandtechnologies;

• qualifyanyneworenhancedproductsforuseinourcustomers'products;and

• developandmaintaineffectivemarketingstrategies.

Wemaynotbesuccessfulatanyoftheseactivities.Asaresult,wemaynotbeabletosuccessfullydevelopneworenhancedproductsorwemayexperiencedelaysinthisprocess.Failuresordelaysinproductdevelopmentandintroductioncouldresultinthelossof,ordelaysingenerating,netproductssalesorotherrevenuesandthelossofkeycustomerrelationships.Evenifwedevelopneworenhancedproductsortechnologies,theymaynotmeetourcustomers'requirementsorgainmarketacceptance,

S-22

TableofContents

asourproductdevelopmenteffortsareinherentlyriskyduetothechallengesofforeseeingchangesordevelopmentsintechnologyoranticipatingtheadoptionofnewstandards.Moreover,wehaveinvestedsignificantresourcesinourproductdevelopmentefforts,whichwouldbelostifwefailtodevelopsuccessfulproducts.Ifanyiftheserisksweretooccur,ournetproductrevenues,prospectsandreputationcouldbemateriallyadverselyaffected.

We face intense competition in our industry, and we may not be able to compete successfully in our target markets.

OurproductsareprimarilytargetedtoOEMsintheserver,high-performancecomputingandcommunicationsmarkets.Inaddition,weresellcertaincomponentproductstostoragecustomers,appliancecustomers,systembuildersandcloudanddatacentercustomers.Thesemarketsareintenselycompetitive,asnumerouscompaniesvieforbusinessopportunitiesatalimitednumberoflargeOEMsandothercustomers.WefacecompetitionfromDRAMsuppliers,memorymoduleprovidersandlogicsuppliersformanyofourproducts,includingEXPRESSvault,NVvaultandHybriDIMM.Wealsofacecompetitionfromthemanufacturersanddistributorsofthecomponentproductswereselltocustomers,asthesemanufacturersanddistributorscoulddecideatanytimetosellthesecomponentproductstothesecustomersdirectly.Additionally,ifandtotheextentweenternewmarketsorpursuelicensingarrangementstomonetizeourtechnologiesandintellectualpropertyportfolio,wemayfacecompetitionfromalargenumberofcompetitorsthatproducesolutionsutilizingsimilarorcompetingtechnologies.

Someofourcustomersandsuppliersmayhaveproprietaryproductsortechnologiesthatarecompetitivewithourproductsorthecomponentswereselltothem,orcoulddevelopinternalsolutionsorenterintostrategicrelationshipswith,oracquire,otherhigh-densitymemorymoduleorcomponentproviders.Anyoftheseactionscouldreduceourcustomers'demandforourproductsorthecomponentproductsweresell.Someofoursignificantsuppliersofmemoryintegratedcircuitsmaybeabletomanufacturecompetitiveproductsatlowercostsbyleveraginginternalefficiencies,orcouldchoosetoreduceoursupplyofmemoryintegratedcircuits,whichcouldadverselyaffectourabilitytomanufactureourmemorysubsystemsonatimelybasis,ifatall.

Certainofourcompetitorshavesubstantiallygreaterfinancial,technical,marketing,distributionandotherresources,broaderproductlines,lowercoststructures,greaterbrandrecognitionandlongerstandingrelationshipswithcustomersandsuppliers.Someofourcompetitorsmayalsohaveagreaterabilitytoinfluenceindustrystandardsthanwedo.Additionally,someofourcompetitorsmayhavemoreextensiveormoreestablishedpatentportfoliosthanwedo.Wemaynotbeabletocompeteeffectivelyagainstanyoftheseorganizations.

Ourabilitytocompeteinourcurrenttargetmarketsandfuturemarketswilldependinlargepartonourabilitytosuccessfullydevelop,introduceandsellnewandenhancedproductsortechnologiesonatimelyandcost-effectivebasisandtorespondtochangingmarketrequirements.Weexpectourcompetitorstocontinuetoimprovetheperformanceoftheircurrentproductsandpotentiallyreducetheirprices.Inaddition,ourcompetitorsmaydevelopfuturegenerationsandenhancementsofcompetitiveproductsorneworenhancedtechnologiesthatmayoffergreaterperformanceandimprovedpricingorrenderourtechnologiesobsolete.Ifweareunabletomatchorexceedtheimprovementsmadebyourcompetitors,ourmarketpositionandprospectscoulddeteriorateandournetproductrevenuescoulddecline.

A limited number of relatively large potential customers dominate the markets for the products we sell.

Ourtargetmarketsarecharacterizedbyalimitednumberoflargecompanies.Consolidationinoneormoreofourtargetmarketsmayfurtherincreasethisindustryconcentration.Asaresult,weanticipatethatsalesofourproductsandthecomponentproductsweresellwillcontinuetobe

S-23

TableofContents

concentratedamongasmallnumberoflargecustomersintheforeseeablefuture.Webelievethatourfinancialresultswilldependinsignificantpartonoursuccessinestablishingandmaintainingrelationshipswithandeffectingsubstantialsalestothesepotentialcustomers.Evenifweestablishandsuccessfullymaintaintheserelationships,ourfinancialresultswillbelargelydependentonthesecustomers'salesandbusinessresults.

If a standardized memory solution that addresses the demands of our customers is developed, our net product revenues and market share may decline.

ManyofourmemorysubsystemsarespecificallydesignedforourOEMcustomers'high-performancesystems.Inadrivetoreducecostsandassuresupplyoftheirmemorymoduledemand,ourOEMcustomersmayendeavortodesignJEDECstandardDRAMmodulesintotheirnewproducts.AlthoughwealsomanufactureJEDECmodules,thistrendcouldreducethedemandforourhigher-pricedcustomizedmemorysolutions,whichwouldhaveanegativeimpactonouroperatingresults.Inaddition,theadoptionofaJEDECstandardmoduleinsteadofapreviouslycustommodulemightallownewcompetitorstoparticipateinashareofourcustomers'memorymodulebusinessthatpreviouslybelongedtous.

IfourOEMcustomersweretoadoptJEDECstandardmodules,ourfuturebusinessmaybelimitedtoidentifyingthenextgenerationofhigh-performancememorydemandsofOEMcustomersanddevelopingsolutionsthataddressthesedemands.Untilfullyimplemented,anynextgenerationofproductsmayconstituteasignificantlysmallermarket,whichcouldreduceourrevenuesandharmourcompetitiveposition.

If we fail to protect our proprietary rights, our customers or our competitors might gain access to our proprietary designs, processes and technologies, whichcould adversely affect our operating results.

Werelyonacombinationofpatentprotection,tradesecretlawsandrestrictionsondisclosuretoprotectourintellectualpropertyrights.Wehavesubmittedanumberofpatentapplicationsregardingourproprietaryprocessesandtechnology.Itisnotcertainwhenorifanyoftheclaimsinourpatentapplicationswillbeallowed.AsofSeptember30,2017,wehad70U.S.andforeignpatentsissued,oneGermanutilitymodeland38pendingpatentapplicationsworldwide.Althoughweintendtocontinuefilingpatentapplicationswithrespecttothenewprocessesandtechnologiesthatwedevelop,patentprotectionmaynotbeavailableforsomeoftheseprocessesortechnologies,inwhichcasetheymayremainunprotectedfromusebythirdparties,includingourcompetitors.

Oureffortstoprotectourintellectualpropertyrightsmaynot:

• preventchallengestoortheinvalidationorcircumventionofourintellectualpropertyrights;

• keepourcompetitorsorotherthirdpartiesfromindependentlydevelopingsimilarproductsortechnologies,duplicating,reverseengineeringorotherwiseusingourproductsortechnologieswithoutourauthorizationordesigningaroundanypatentsthatmaybeissuedtous;

• preventdisputeswiththirdpartiesregardingownershipofourintellectualpropertyrights;

• preventdisclosureofourtradesecretsandknow-howtothirdpartiesorintothepublicdomain;

• resultinvalidpatents,includinginternationalpatents,fromanyofourpendingorfutureapplications;or

• otherwiseadequatelyprotectourintellectualpropertyrights.

Monitoringforanyunauthorizeduseofourtechnologiesiscostly,time-consuminganddifficult.Thisisparticularlytrueinforeigncountries,suchasthePRC,wherewehaveestablishedamanufacturingfacilityandwherethelawsmaynotprotectourproprietaryrightstothesameextentasapplicableU.S.laws.

S-24

TableofContents

IfsomeoralloftheclaimsinourpatentapplicationsarenotallowedorifanyofourintellectualpropertyprotectionsarelimitedinscopebytheUSPTO,acourtorapplicableforeignauthoritiesorarecircumventedbythirdparties,wecouldfaceincreasedcompetitionforourproductsandbeunabletoexecuteonourstrategyofmonetizingourintellectualproperty.Anyoftheseoutcomescouldsignificantlyharmourbusiness,operatingresultsandprospects.

Our operating results may be adversely impacted by worldwide economic and political uncertainties and specific conditions in the markets we address and inwhich we or our strategic partners or competitors do business, including the cyclical nature of and volatility in the memory market and semiconductorindustry.

Adversechangesindomesticandglobaleconomicandpoliticalconditionshavemadeitextremelydifficultforourcustomers,ourvendorsandustoaccuratelyforecastandplanfuturebusinessactivities,andtheseconditionshavecausedandcouldcontinuetocauseU.S.andforeignbusinessestoslowordecreasespendingonourproductsandservicesandtheproductswereselltocustomersdirectly.Forinstance,thecurrentpoliticalinstabilityinKoreacouldimpactouroperationsandfinancialconditionasaresultofourdependenceonSamsung,aSouthKoreanbasedcompany,asakeysupplierandstrategicpartner,andourongoinglegalproceedingsagainstSKhynix.Inaddition,salesofourproductsandtheproductswereselltocustomersdirectlyaredependentupondemandbyOEMsintheserver,high-performancecomputingandcommunicationsmarkets,aswellasbystoragecustomers,appliancecustomers,systembuildersandcloudanddatacentercustomers.Thesemarketsarecharacterizedbywidefluctuationsinproductsupplyanddemand.Additionally,thesemarketshavebeencyclicalandhaveexperiencedsignificantdownturns,oftenconnectedwithorinanticipationofmaturingproductcycles,reductionsintechnologyspendinganddeclinesingeneraleconomicconditions.Duringthesedownturns,productdemanddiminishes,productioncapacityexceedsdemand,inventorylevelsincreaseandaveragesellingpricesdecline,allofwhichwouldmateriallyadverselyimpactourbusinessandoperatingresults.Additionally,suchadownturncoulddecreasetheperceivedvalueofourintellectualpropertyportfolioandresultinreducedabilitytopursueourgoalofmonetizingthisportfolio.

Wemayexperiencesubstantialperiod-to-periodfluctuationsinouroperatingresultsduetofactorsaffectingthemarketsinwhichweoperate.Adeclineorsignificantshortfallindemandinanyofthesemarketscouldhaveamaterialadverseeffectondemandforourproductsandtheproductswereselltocustomersdirectlyand,consequently,onournetproductrevenues.Inaddition,becausemanyofourcostsandoperatingexpensesarerelativelyfixed,ifweareunabletocontrolourexpensesadequatelyinresponsetoreducedproductrevenues,ourgrossmargins,operatingincomeandcashflowswouldbenegativelyimpacted.

Duringchallengingeconomictimesourcustomersmayfaceissuesgainingtimelyaccesstosufficientcredit,whichcouldimpairtheirabilitytomaketimelypaymentstous.Thismayimpairourliquidityandcashflowsandrequireustoincreaseourallowancefordoubtfulaccounts.Furthermore,ourvendorsmayfacesimilarissuesgainingaccesstocredit,whichmaylimittheirabilitytosupplycomponentsorprovidetradecredittous.Wecannotpredictthetiming,strengthordurationofanyeconomicslowdownorsubsequenteconomicrecovery,eithergenerallyorinourmarkets.Iftheeconomyormarketsinwhichweoperateexperiencesuchaslowdown,ourbusiness,financialconditionandresultsofoperationscouldbemateriallyandadverselyaffected.Additionally,thecombinationofourlengthysalescyclecoupledwithanychallengingmacroeconomicconditionscouldcompoundthenegativeimpactofanysuchdownturnontheresultsofouroperations.

S-25

TableofContents

Our lack of a significant backlog of unfilled orders and the difficulty inherent in estimating customer demand makes it difficult to forecast our short-termrequirements, and any failure to optimally calibrate our production capacity and inventory levels to meet customer demand could adversely affect ourrevenues, gross margins and earnings.

Wemakesignificantdecisionsregardingthelevelsofbusinesswewillseekandaccept,productionschedules,componentprocurement,personnelneedsandotherresourcerequirementsbasedonourestimatesofcustomerdemand.Wedonothavelong-termagreementswithanyofourcustomers.Instead,salesaremadeprimarilypursuanttostandardpurchaseordersthatweoftenreceivenomorethantwoweeksinadvanceofthedesireddeliverydateandthatmayberescheduledorcancelledonrelativelyshortnotice.Theshort-termnatureofthecommitmentsbymanyofourcustomersandthefactthatourcustomersmaycancelordeferpurchaseordersforanyreasonreducesourbacklogoffirmordersandourabilitytoaccuratelyestimatefuturecustomerrequirementsforourproductsorthecomponentproductswereselltocustomersdirectly.Thisfact,combinedwiththequickturn-aroundtimesthatapplytomostorders,makesitdifficulttoforecastourproductionandinventoryneedsandallocateproductioncapacityefficiently.Asaresult,weattempttoforecastthedemandforthecomponentsneededtomanufactureourproductsandtoreselltocustomersdirectly,butanysuchforecastscouldturnouttobewrong.Further,leadtimesforcomponentsvarysignificantlyanddependonvariousfactors,suchasthespecificsupplierandthedemandandsupplyforacomponentatagiventime.

Ourproductionexpenseandcomponentpurchaselevelsaretoalargeextentfixedintheshortterm.Asaresult,wemaybeunabletoadjustspendingonatimelybasistocompensateforanyunexpectedshortfallincustomerorders.Ifweoverestimatecustomerdemand,wemayhaveexcessinventoryofcomponents,whichmaynotbeabletobeusedinotherproductsorresoldandmaybecomeobsoletebeforeanysuchuseorresale.Ifthereisasubsequentdeclineinthepricesofthesecomponents,thevalueofourinventorywouldfall.Asaresult,wemayneedtowrite-downthevalueofourcomponentinventory,whichmayresultinasignificantdecreaseinourgrossmarginandfinancialcondition.Also,totheextentthatweordercomponentsormanufactureourproductsinanticipationoffuturedemandthatdoesnotmaterializeorintheeventacustomercancelsorreducesoutstandingorders,wecouldexperienceanunanticipatedincreaseinourcomponentorfinishedgoodsinventory.Inthepast,wehavehadtowrite-downinventoryduetoobsolescence,excessquantitiesanddeclinesinmarketvaluebelowourcosts.Anysignificantshortfallofcustomerordersinrelationtoourexpectationscouldhurtouroperatingresults,cashflowsandfinancialcondition.

Conversely,anyrapidincreasesindemandbyourcustomerscouldstrainourresourcesandreduceourmargins.Ifweunderestimatecustomerdemand,wemaynothavesufficientinventoryofnecessarycomponentsonhandtomeetthatdemand.Wealsomaynothavesufficientmanufacturingcapacityatanygiventimetomeetanydemandsforrapidincreasesinproductionofourproducts.Theseshortagesofinventoryandcapacitycouldleadtodelaysinthedeliveryofourproductsorthecomponentproductsweresell,whichmayforceustoforegosalesopportunities,reduceournetproductrevenuesanddamageourcustomerrelationships.

Declines in our average sales prices, driven by volatile prices for components and other factors, may result in declines in our revenues and gross profit.

Ourindustryiscompetitiveandhistoricallyhasbeencharacterizedbydeclinesinaveragesalesprice,basedinpartonmarketpricesforDRAMICs,NANDflashandothercomponentproducts,whichhistoricallyhaveconstitutedasubstantialportionofthetotalcostofourmemorysubsystemsandinrecentperiodshaveconstitutedthevastmajorityofthecostofresalesoftheseproductstocustomersdirectly.Ouraveragesalespricesmaydeclineduetoseveralfactors,includingovercapacityintheworldwidesupplyofthesecomponents,increasedmanufacturingefficiencies,implementationofnewmanufacturingprocessesandexpansionofmanufacturingcapacitybycomponentsuppliers.

S-26

TableofContents

Onceourpriceswithacustomerarenegotiated,wearegenerallyunabletorevisepricingwiththatcustomeruntilournextregularlyscheduledpriceadjustment.Asaresult,ifmarketpricesforessentialcomponentsincrease,wegenerallycannotpassthepriceincreasesontoourcustomersforproductspurchasedunderanexistingpurchaseorder.Consequently,weareexposedtotherisksassociatedwiththevolatilityofpricesforthesecomponentsandourcostofsalescouldincreaseandourgrossmarginscoulddecreaseintheeventofpriceincreases.Alternatively,iftherearedeclinesinthepricesofthesecomponents,wemayneedtoreduceoursellingpricesforsubsequentpurchaseorders,whichmayresultinadeclineinournetproductrevenues.

Inaddition,sincealargepercentageofourproductrevenuesaretoasmallnumberofcustomers,thesecustomershaveexerted,andweexpecttheywillcontinuetoexert,pressureonustomakepriceconcessions.Ifnotoffsetbyincreasesinvolumeofsalesorthesalesofnewly-developedproductswithhighermargins,decreasesinaveragesalespricescouldhaveamaterialadverseeffectonourbusinessandoperatingresults.

Our manufacturing operations involve significant risks.

WemaintainamanufacturingfacilityinthePRCatwhichweproducemostofourproducts.Thisinternalmanufacturingprocessallowsustoutilizeourownmaterialsandprocesses,protectourintellectualpropertyanddevelopthetechnologyformanufacturing.However,ourmanufacturingactivitiesrequiresignificantresourcestomaintain.Forinstance,wemustcontinuouslyreviewandimproveourmanufacturingprocessesinordertomaintainsatisfactorymanufacturingyieldsandproductperformance,trytolowerourcostsandotherwiseremaincompetitive.Aswemanufacturemorecomplexproducts,theriskofencounteringdelays,difficultiesorhighercostsincreases.Thestart-upcostsassociatedwithimplementingnewmanufacturingtechnologies,methodsandprocesses,includingthepurchaseofnewequipmentandanyresultingmanufacturingdelaysandinefficiencies,couldnegativelyimpactourresultsofoperations.

Additionally,wecouldexperienceaprolongeddisruption,materialmalfunction,interruptionorotherlossofoperationsatourmanufacturingfacilityorwemayneedtoaddmanufacturingcapacitytosatisfyanyincreaseddemandforourproducts.Underthesecircumstances,wemaybeforcedtorelyonthirdpartiesforourmanufacturingneeds,whichcouldincreaseourmanufacturingcosts,decreasesourprofitmargin,decreaseourcontrolovermanufacturingprocesses,limitourabilitytomeetcustomerdemandanddelaynewproductdevelopmentuntilwecouldsecurearelationshipwithathird-partymanufacturer,whichwemaynotbeabletodoinatimelymanner,onacceptabletermsoratall.Ifanyoftheserisksweretooccur,ouroperations,performanceandcustomerrelationshipscouldbeseverelyharmed.Inaddition,wemayneedtoexpandourexistingmanufacturingfacilityorestablishanewfacility.Anyneedtoexpandorreplaceourmanufacturingfacilitywouldbeexpensiveandtime-consumingandcouldalsosubjectustofactoryauditsbyourcustomersthatcouldthemselvesresultindelays,unexpectedcostsorcustomerlossesifwecannotmeetthestandardsofanysuchaudits.Further,wemaynotbeabletoreplaceorincreaseourmanufacturingcapacityatall.Theoccurrenceofanyoftheseeventscouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.

We depend on third parties to design and manufacture custom components for some of our products and the component products we resell to customersdirectly, which exposes us to risks.

Significantcustomizedcomponents,suchasASICs,thatareusedinHyperCloudandsomeofourotherproducts,aswellasallofthecomponentproductsweresell,aredesignedandmanufacturedbythirdparties.Theabilityandwillingnessofthirdpartiestoenterintotheseengagementswithusandperforminaccordancewiththeseengagementsislargelyoutsideofourcontrol.Ifoneormoreofourdesignormanufacturingpartnersexperiencesamanufacturingdisruption,failstodedicateadequateresourcestotheproductionofourproductsorthecomponentswepurchaseforresale,experiences

S-27

TableofContents

financialinstabilityorotherwisefailstoperformitsobligationstousinatimelymanneroratsatisfactoryqualitylevels,ourabilitytobringproductstomarketordeliverproductstoourcustomers,aswellasourreputation,couldsufferandourbusinessandprospectscouldbemateriallyharmed.Intheeventofanyfailurebyourcomponentmanufacturers,wemayhavenoreadilyavailablealternativesourceofsupplyforthesecomponents,since,inourexperience,theleadtimeneededtoestablisharelationshipwithanewdesignormanufacturingpartnerissubstantial,andthetimeforourOEMcustomerstore-qualifyourproductswithcomponentsfromanewvendorisalsosignificant.Additionally,ifweneedtoreplaceoneofourcomponentmanufacturers,wemaynotbeabletodosoinatimelymanner,onacceptabletermsoratall.Further,wemaynotbeabletoredesignthecustomizedcomponentsusedinourproductstobemanufacturedbyanewmanufacturer,inwhichcasewecouldinfringeontheintellectualpropertyofourcurrentdesignormanufacturingpartnerwhenweredesignthecustomcomponents.Suchanoccurrencecouldforceustostopsellingcertainofourproductsorthecomponentproductsweresellorcouldexposeustolawsuits,licensepaymentsorotherliabilities.

Ourdependenceonthird-partymanufacturersexposesustomanyotherrisks,including,amongothers:reducedcontroloverdeliveryschedules,quality,manufacturingyieldsandcosts;thepotentiallackofadequatecapacityduringperiodsofexcessdemand;limitedwarrantiesonproductssuppliedtous;andpotentialmisappropriationofourintellectualpropertyortheintellectualpropertyofothers.Wearedependentonourmanufacturingpartnerstomanufacturecomponentswithacceptablequalityandmanufacturingyields,todeliverthesecomponentstousonatimelybasisandtoallocateaportionoftheirmanufacturingcapacitysufficienttomeetourneeds.However,thesecomponentmanufacturersmaynotbeabletoachieveormaintainacceptableyieldsordeliversufficientquantitiesofcomponentsonatimelybasisoratanacceptablecost.Additionally,ourmanufacturingpartnersmaynotcontinuetodevoteadequateresourcestoproduceourproductsorthecomponentproductsweresell,orcontinuetoadvancetheprocessdesigntechnologiesonwhichthequalificationandmanufacturingofourproductsorthecomponentproductsweresellarebased.Further,wecouldbeexposedtoliabilityifcomponentmanufacturersarefoundtoinfringetheintellectualpropertyrightsofothersandweareheldresponsibleforanysuchinfringement.Anyoftheseriskscouldlimitourabilitytomeetcustomerdemandandmateriallyadverselyaffectourbusinessandoperatingresults.

If our products or the component products we resell do not meet quality standards or are defective or used in defective systems, we may be subject to qualityholds, warranty claims, recalls or liability claims.

Ourcustomersrequireourproductsandthecomponentproductswereselltomeetstrictqualitystandards.Iftheseproductsdonotmeetthesestandards,ourcustomersmaydiscontinuepurchasesfromusuntilweareabletoresolvethequalityissuesthatarecausingustonotmeetthestandards,whichwemaynotbeabletodo.These"qualityholds"couldbecostlyandtime-consumingtoresolveandcouldhaveasignificantadverseimpactonourrevenuesandoperatingresults.

Iftheseproductsaredefectivelymanufactured,containdefectivecomponentsorareusedindefectiveormalfunctioningsystems,wecouldbesubjecttowarrantyandproductliabilityclaims,productrecalls,safetyalertsoradvisorynotices.

Althoughwegenerallyattempttocontractuallylimitourexposuretoincidentalandconsequentialdamages,ifthesecontractprovisionsarenotenforcedorifliabilitiesarisethatarenoteffectivelylimited,wecouldincursubstantialcostsindefendingorsettlingproductliabilityclaims.Whilewecurrentlyhaveproductliabilityinsurancecoverage,itmaynotprovidecoverageundercertaincircumstancesanditmaynotbeadequatetosatisfyclaimsmadeagainstus.Wealsomaybeunabletomaintaininsuranceinthefutureatsatisfactoryratesorinadequateamounts.

S-28

TableofContents

Warrantyandproductliabilityclaims,productrecalls,safetyalertsoradvisorynotices,regardlessoftheircoveragebyinsuranceortheirultimateoutcome,couldhaveamaterialadverseeffectonourbusiness,financialconditionandabilitytoattractandretaincustomers.

We may become involved in non-patent related litigation and administrative proceedings that may materially adversely affect us.

Fromtimetotime,wemaybecomeinvolvedinvariouslegalproceedingsrelatingtomattersincidentaltotheordinarycourseofourbusiness,includingcommercial,employment,classaction,whistleblowerandotherlitigationandclaims,aswellasgovernmentalandotherregulatoryinvestigationsandproceedings.Suchmatterscanbetime-consuming,divertmanagement'sattentionandresourcesandcauseustoincursignificantexpenses.Furthermore,becauselitigationisinherentlyunpredictable,theresultsoftheseactionscouldsubjectustomonetarydamagesorotherliabilitiesandhaveamaterialadverseeffectonourbusiness,resultsofoperationsandfinancialcondition.

Our indemnification obligations for the infringement by our products of the intellectual property rights of others could require us to pay substantial damages.

Asiscommoninourindustry,wehaveanumberofagreementsinwhichwehaveagreedtodefend,indemnifyandholdharmlessourcustomersandsuppliersfromdamagesandcoststhatmayarisefromtheinfringementbyourproductsofthird-partypatents,trademarksorotherproprietaryrights.Thescopeoftheseindemnitiesvaries,butmay,insomeinstances,includeindemnificationfordamagesandexpenses,includingattorneys'fees.Thetermoftheseindemnificationobligationsisgenerallyperpetualafterexecutionofanagreementandthemaximumpotentialamountoffuturepaymentswecouldberequiredtomakeundertheseindemnificationobligationsisoftenunlimited.Anyindemnificationclaimsbycustomerscouldrequireustoincursignificantlegalfeesandcouldpotentiallyresultinourpaymentofsubstantialdamages,andourinsurancegenerallywouldnotcoverthesefeesordamages.Asaresult,theoccurrenceofanyoftheseriskscouldresultinamaterialadverseeffectonourbusinessandresultsofoperations.

We depend on a few key employees, and our business could be harmed if we lose the services of any of these employees or are unable to attract and retain otherqualified personnel.

Todate,wehavebeenhighlydependentontheexperience,relationshipsandtechnicalknowledgeofcertainkeyemployees.Webelievethatourfuturesuccesswillbedependentonourabilitytoretaintheservicesofthesekeyemployees,developtheirsuccessorsandproperlymanagethetransitionoftheirrolesshoulddeparturesoccur.Thelossofthesekeyemployeesortheirinabilitytoprovidetheirservicescoulddelaythedevelopmentandintroductionofneworenhancedproducts,negativelyimpactourabilitytosellourexistingproducts,limitourabilitytopursueourotherbusinessgoalsandstrategiesandotherwiseharmourbusiness.WedonothaveemploymentagreementswithanyofthesekeyemployeesotherthanChunK.Hong,ourPresident,ChiefExecutiveOfficerandChairmanofourboardofdirectors.Wemaintain"KeyMan"lifeinsuranceonMr.Hong,butwedonotcarry"KeyMan"lifeinsuranceonanyofourotheremployees.

Ourfuturesuccessalsodependsonourabilitytoattract,retainandmotivatehighlyskilledengineering,manufacturingandothertechnicalandsalespersonnel.Competitionforexperiencedpersonnelisintense.Wemaynotbesuccessfulinattractingnewengineersorothertechnicalpersonnelorinretainingormotivatingourexistingpersonnel.Ifweareunabletohireandretainengineerswiththeskillsnecessarytokeeppacewiththeevolvingtechnologiesinourmarkets,ourabilitytocontinuetoprovideourexistingproductsandtodevelopneworenhancedproductswillbenegativelyimpacted,whichwouldharmourbusiness.Inaddition,ageneralshortageofexperiencedengineerscouldleadtoincreasedrecruiting,relocationandcompensationcoststoattractsuchengineers,whichmayexceedour

S-29

TableofContents

expectationsandresources.Theseincreasedcostsmaymakehiringnewengineersdifficultormayincreaseouroperatingexpenses.

Asignificantportionofourworkforceconsistsofcontractpersonnel.Weinvestconsiderabletimeandexpensetotrainthesecontractpersonnel;however,theytypicallymayterminatetheirrelationshipswithusatanytime.Asaresult,wemayexperiencehighturnoverratesinthiscontractpersonnelworkforce,whichmayrequireustoexpendadditionalresourcestoattract,trainandretainreplacements.Additionally,ifweconvertanyofthesecontractpersonnelintopermanentemployees,wemayhavetopayfinder'sfeestothecontractagency.Theserisksassociatedwithourcontractpersonnelworkforcemayinvolveincreasedcostsordelaysorfailuresinmeetingcustomerrequirementsordevelopingneworenhancedproducts,anyofwhichcouldmateriallyadverselyaffectourbusinessandoperatingperformance.

We rely on our internal and third-party sales representatives to market and sell our products and the component products we resell, and any failure by theserepresentatives to perform as expected could reduce our sales.

Weprimarilymarketandsellourproductsandthecomponentproductswereselltocustomersdirectlythroughadirectsalesforceandanetworkofindependentsalesrepresentatives.Wehaveexpendedsignificantresourcestobuildourinternalsalesandmarketingfunction,butcomparedtomanyofourcompetitors,wehaverelativelylittleexperiencecreatingasalesandmarketingplatformanddevelopingateamtoimplementit.Wemaybeunsuccessfulintheseefforts.

Thesesalesrepresentativesgenerallymayterminatetheirrelationshipswithusatanytime.Asaresult,ourperformancedependsinpartonourabilitytoretainexistingandattractadditionalsalesrepresentativesthatwillbeabletomarketandsupportourproductsorthecomponentproductswereselleffectively,especiallyinmarketsinwhichwehavenotpreviouslydistributedtheseproducts.Oureffortstoattract,trainandretainthesesalesrepresentativestobeknowledgeableaboutourindustry,productsandtechnologiesarecostlyandtime-consuming.Iftheseeffortsfail,ourinvestmentsinthesesalesrepresentativesmaynotproducetheexpectedbenefitsandourabilitytomarketandsellourproductsorthecomponentproductsweresellmaybelimited,whichcouldmateriallyharmourfinancialconditionandoperatingresults.Further,ourrelianceuponindependentsalesrepresentativessubjectsustorisks,aswehaveverylittlecontrolovertheiractivitiesandtheyaregenerallyfreetomarketandsellother,potentiallycompetingproducts.Asaresult,theseindependentsalesrepresentativescoulddevoteinsufficienttimeorresourcestomarketingourproductsorthecomponentproductsweresell,couldmarkettheminanineffectivemannerorcouldotherwisebeunsuccessfulinsellingadequatequantitiesoftheseproducts.

Economic, geographic and political and other risks associated with our international sales and operations expose us to significant risks.

Partofourgrowthstrategyinvolvesmakingsalestoforeigncorporationsanddeliveringproductstofacilitieslocatedinforeigncountries.Tofacilitatethisprocessandtomeetthelong-termprojecteddemandforourproducts,wehaveestablishedamanufacturingfacilityinthePRC,whichperformsmostofourworldwidemanufacturingactivities.Sellingandmanufacturinginforeigncountriessubjectsustoadditionalrisksnotpresentwithourdomesticoperations,asweareoperatinginbusinessandregulatoryenvironmentsinwhichwehavelimitedexperience.Further,thegeographicdistancefromourheadquartersinIrvine,California,compoundsthedifficultiesofrunningamanufacturingoperationinthePRC.Forinstance,wemaynotbeabletomaintainthedesiredamountofcontroloverproductioncapacityandtiming,inventorylevels,productquality,deliveryschedules,manufacturingyieldsandcosts.Moreover,wewillneedtocontinuetoovercomelanguageandculturalbarrierstoeffectivelyconducttheseinternationaloperations.Ourfailuretomeetapplicableregulatoryrequirementsorovercomeculturalbarrierscouldresultinlegalconsequencesorproductiondelaysand

S-30

TableofContents

increasedturnaroundtimes,whichwouldadverselyaffectourbusiness.Inaddition,changestothelaborlawsofthePRCcouldincreasethecostofemployingthelocalworkforce.TheincreasedindustrializationofthePRC,aswellasgeneraleconomicandpoliticalconditionsinthePRC,couldalsoincreasethecostoflocallaborortheothercostsofdoingbusinessinthePRC.AnyofthesefactorscouldnegativelyimpactthecostsavingsweexperiencefromlocatingourmanufacturingfacilityinthePRC.Additionally,ourmanagementhaslimitedexperiencecreatingoroverseeingforeignoperations,andtheongoingmanagementofourPRCfacilitymayrequireourmanagementteamtodivertsubstantialamountsoftheirtimeandattention,particularlyifweencounteroperational,legalorculturaldifficultiesordisruptionsatourPRCfacility.

Todate,allofournetproductrevenueshavebeendenominatedinU.S.dollars.Inthefuture,however,someofournetproductrevenuesmaybedenominatedinChineseRenminbi("RMB").TheChinesegovernmentcontrolstheproceduresbywhichRMBisconvertedintoothercurrencies,whichgenerallyrequiresgovernmentconsent.Asaresult,RMBmaynotbefreelyconvertibleintoothercurrenciesatalltimes.IftheChinesegovernmentinstituteschangesincurrencyconversionproceduresorimposesadditionalrestrictionsoncurrencyconversion,ouroperationsandouroperatingresultscouldbenegativelyimpacted.Inaddition,ChineselawimposesrestrictionsonthemovementoffundsoutsideofthePRC.IfweneedordecidetorepatriatefundsfromourChineseoperations,wewouldberequiredtocomplywiththeproceduresandregulationsofapplicableChineselaw.Anyfailuretocomplywiththeseproceduresandregulationscouldadverselyaffectourliquidityandfinancialcondition.Further,ifweareabletorepatriatefundsfromourChineseoperations,thesefundswouldbesubjecttoU.S.corporateincometax.Inaddition,fluctuationsintheexchangeratebetweenRMBandU.S.dollarsmayadverselyaffectourexpensesandresultsofoperations,thevalueofourassetsandliabilitiesandthecomparabilityofourperiod-to-periodresults.

Inaddition,internationalturmoilandthethreatoffutureterroristattacks,bothdomesticallyandinternationally,havecontributedtoanuncertainpoliticalandeconomicclimate,bothintheUnitedStatesandglobally,andhavenegativelyimpactedtheworldwideeconomy.TheeconomiesofthePRCandothercountriesinwhichwemakesaleshavebeenhighlyvolatileintherecentpast,resultinginsignificantfluctuationsinlocalcurrenciesandotherinstabilities.Theseconditionscouldcontinueorworsen,whichcouldadverselyaffectourforeignoperationsandsomeofourcustomersorsuppliersandourperformance.

Ourinternationalsalesaresubjecttoanumberofadditionalrisks,includingregulatoryrisks,timingandavailabilityofexportlicenses,difficultiesinaccountsreceivablecollections,difficultiesinmanagingdistributors,lackofasignificantlocalsalespresence,difficultiesinobtaininggovernmentalapprovals,compliancewithawidevarietyofcomplexforeignlawsandtreatiesandpotentiallyadversetaxconsequences.Inaddition,theUnitedStatesorforeigncountriesmayimplementquotas,duties,tariffs,taxesorotherchargesorrestrictionsupontheimportationorexportationofourproductsortheproductswereselltocustomersdirectly,leadingtoareductioninsalesandprofitabilityinthatcountry.ThisriskofincreasedtradebarriersorchargeshasbecomemorepronouncedfollowingtheresultsoftherecentU.S.presidentialelection,asthetradepoliciesofthecurrentU.S.presidentialadministration,includingwithdrawalfromtheTrans-PacificPartnershipandproposedrevisiontotheNorthAmericanFreeTradeAgreement,couldthreatenorotherwisehaveasignificantnegativeeffectonourabilitytocontinuetoconductourinternationaloperationsinthemannerandatthecostsaswehaveinthepast.Anyincreasedcostsorregulatoryobstacleswithrespecttoourinternationaloperations,includingourmanufacturingfacilityinthePRCandourinternationalsales,couldhaveamaterialadverseeffectonourbusiness,financialconditionandprospectsforgrowth.

Our operations could be disrupted by power outages, natural disasters or other factors.

DuetothegeographicconcentrationofourmanufacturingoperationsinourPRCfacilityandoursmallnumberofcomponentsuppliers,includingSamsungforthemajorityofthecomponentproducts

S-31

TableofContents

wereselltocustomersdirectly,adisruptionresultingfromequipmentorpowerfailures,qualitycontrolissues,humanerrors,governmentinterventionornaturaldisasters,includingearthquakesandfloods,couldrequiresignificantcoststorepairandcouldinterruptorinterferewiththemanufactureofourproductsorthecomponentproductswereselltocustomersdirectlyandcausesignificantdelaysinproductshipments,whichcouldharmourcustomerrelationships,financialconditionandresultsofoperations.InJuly2014,ourPRCfacilitysufferedwaterdamageasaresultofheavyrainandfloods,whichforcedustotemporarilyhaltmanufacturingatthefacilitywhilenecessaryrepairsorreplacementsweremadetothefacilityandtocertainofourmanufacturingequipment.Thisincidentcausedustoincuradditionalexpenses,asweshiftedourmanufacturingactivitiestoathird-partyfacilityinthePRCtomitigatethedisruptioninproductshipmentstoourcustomers.Whilewebelievewewereabletocontainthisdisruption,wemaynotbeabletosecurealternativemanufacturingcapabilitiesifmanufacturingatthePRCfacilityisdisruptedinthefuture,inwhichcaseourrelationshipswithourcustomerscouldbemateriallyharmed.Additionally,whilewewereabletofavorablyresolveourclaimwithourinsurancecarrierwithrespecttothedamagetoourfacilitycausebytheJuly2014incident,wemaynotexperiencethesameoutcomeifasimilareventoccursinthefuture,inwhichcasewewouldbeforcedtobearthesignificantcoststorepairanydamagetoourmanufacturingequipmentandfacility.

Difficulties with our global information technology systems, including any unauthorized access, could harm our business.

Anyfailureormalfunctioningofourglobalinformationtechnologysystems,errorsormisusebysystemusers,difficultiesinmigratingstand-alonesystemstoourcentralizedsystemsorinadequacyofthesystemsinaddressingtheneedsofouroperationscoulddisruptourabilitytotimelyandaccuratelymanufactureandshipproducts,divertmanagement'sandkeyemployees'attentionawayfromotherbusinessmattersandinvolvesignificantcostsandotherresourcestorepairorotherwiseresolve,anyofwhichcouldhaveamaterialadverseeffectonourbusiness,financialconditionandresultsofoperations.Anysucheventcouldalsodisruptourabilitytotimelyandaccuratelyprocess,reportandevaluatekeyoperatingmetricsandkeycomponentsofourresultsofoperations,financialpositionandcashflowsandcouldadverselyaffectourabilitytocompleteotherimportantbusinessprocess,suchasmaintenanceofourdisclosurecontrolsandproceduresandevaluationofourinternalcontroloverfinancialreporting.

Westoredataaboutourbusiness,includingcertaincustomerdata,informationaboutourandourcustomer'sintellectualpropertyandotherproprietaryinformation,onourglobalinformationtechnologysystems.Whileoursystemsincludessecuritymeasuresdesignedtopreventunauthorizedaccess,thirdpartiesmaycircumventthesemeasuresandgainunauthorizedaccesstooursystems.Thisunauthorizedaccesscouldbetheresultofemployeeerror,employeemalfeasanceorothercauses,includingintentionalmisconductbycomputerhackers.Becausethetechniquesusedtogainunauthorizedaccesstoinformationtechnologysystemsevolvefrequentlyandgenerallyarenotrecognizeduntilsuccessful,wemaybeunabletoanticipatethesetechniquesortoimplementadequatepreventativemeasures.Anysecuritybreachcouldresultindisruptiontoourbusiness,misappropriationorlossofdata,significantresourcestocorrect,lossofconfidenceinusbyourcustomers,damagetoourreputation,legalliabilityandanegativeimpactonourperformance.

Our failure to comply with environmental and other applicable laws and regulations could subject us to significant fines and liabilities or cause us to incursignificant costs.

WearesubjecttovariousandfrequentlychangingU.S.federal,stateandlocalandforeignlawsandregulationsrelatingtotheprotectionoftheenvironment,includinglawsgoverningthedischargeofpollutantsintotheairandwater,themanagementanddisposalofhazardoussubstancesandwastesandtheclean-upofcontaminatedsites.Inparticular,someofourmanufacturingprocessesmayrequireus

S-32

TableofContents

tohandleanddisposeofhazardousmaterialsfromtimetotime.Forexample,inthepastourmanufacturingoperationshaveusedlead-basedsolderintheassemblyofourproducts.Today,weuselead-freesolderingtechnologiesinourmanufacturingprocesses,asthisisrequiredforproductsenteringtheEuropeanUnion.Wecouldincursubstantialcosts,includingclean-upcosts,civilorcriminalfinesorsanctionsandthird-partyclaimsforpropertydamageorpersonalinjury,asaresultofviolationsofornoncompliancewiththeseandotherenvironmentallawsandregulations.Althoughwehavenotincurredsignificantcoststodatetocomplywiththeselawsandregulations,newlawsorchangestocurrentlawsandregulationstomakethemmorestringentcouldrequireustoincursignificantcoststoremainincompliance.

Wearealsosubjecttoavarietyoflawsandregulationsrelatingtoothermatters,includingworkplacehealthandsafety,laborandemployment,foreignbusinesspractices,publicreportingandtaxation,amongothers.Itisdifficultandcostlytomanagetherequirementsofeveryauthorityhavingjurisdictionoverourvariousactivitiesandtocomplywiththeirvaryingstandards.Additionally,anychangestoexistingregulationsoradoptionofnewregulationsmayresultinsignificantadditionalexpensetousandourcustomers.Forexample,thecurrentpresidentialadministrationandCongresshaveproposedtomakesubstantialchangestothetaxationofbusinessentities,butthereremainssignificantlackofclarityregardingthelikelihood,timinganddetailsofanysuchtaxreformortheimpactofanypotentialtaxreformonourorourcustomers'respectivebusinessesorresults.Further,ourfailuretocomplywithanyapplicablelawsandregulationsmayresultinavarietyofadministrative,civilandcriminalenforcementmeasures,includingmonetarypenaltiesorimpositionofsanctionsorothercorrectiverequirements,anyofwhichcouldmateriallyadverselyaffectourreputationandourbusiness.

Regulations related to "conflict minerals" may cause us to incur additional expenses and could limit the supply and increase the cost of certain metals used inmanufacturing our products.

InAugust2012,theSECadoptedrulesrequiringdisclosureofspecifiedminerals,knownasconflictminerals,thatarenecessarytothefunctionalityorproductionofproductsmanufacturedorcontractedtobemanufacturedbypubliccompanies.Therulesrequirecompaniestoverifyanddisclosewhetherornotsuchminerals,asusedinacompany'sproductsortheirmanufacture,originatefromtheDemocraticRepublicofCongooranadjoiningcountry.Becauseourproductscontaincertainconflictmineralsandweorourmanufacturersusetheseconflictmineralsinthemanufactureofourproducts,wearerequiredtocomplywiththesedisclosurerules.Tocomplywiththerules,wearerequiredtoconductareasonablecountryoforigininquiryeachyearand,dependingontheresultsofthatinquiry,wemayberequiredtoexerciseduediligenceonthesourceandchainofcustodyofconflictmineralscontainedinorusedtomanufactureourproducts.Suchduediligencemustconformtoanationallyorinternationallyrecognizedduediligenceframework.WearealsorequiredtofileadisclosurereportwiththeSECofeachyearrelatingtoourconflictmineraluse.

Theduediligenceactivitiesrequiredtodeterminethesourceandchainofcustodyofmineralscontainedinourproductsorusedintheirmanufacturearetime-consumingandmayresultinsignificantcosts.Duetothesizeandcomplexityofoursupplychain,wefacesignificantchallengesinverifyingtheoriginsofthemineralsusedinourproducts.Further,theserulescouldaffecttheavailabilityinsufficientquantitiesandatcompetitivepricesofcertainmineralsusedinourproductsandtheirmanufacture,whichcouldresultinincreasedmaterialandcomponentcostsandadditionalcostsassociatedwithpotentialchangestoourproducts,processesorsourcesofsupply.Additionally,ifweareunabletosufficientlyverifytheoriginofthemineralsusedinourproductsthroughtheduediligencemeasuresthatweimplement,wemaynotbeabletosatisfycustomerswhorequirethatourproductsbecertifiedas"conflict-free,"whichcouldplaceusatacompetitivedisadvantage.

S-33

TableofContents

Our internal control over financial reporting may not be effective, which could have a significant and adverse effect on our business.

Section404oftheSarbanes-OxleyActof2002andtherelatedrulesandregulationsoftheSEC,whichwecollectivelyrefertoasSection404,requireustoevaluateourinternalcontroloverfinancialreportingandrequiremanagementtoreportontheeffectivenessofthisinternalcontrolasoftheendofeachyear.Effectiveinternalcontrolisnecessaryforustoproducereliablefinancialreportsandisimportantinourefforttopreventfinancialfraud.InthecourseofourSection404evaluations,weorourindependentregisteredpublicaccountingfirmmayidentifysignificantdeficienciesormaterialweaknessesinourinternalcontroloverfinancialreporting.Ifwefailtomaintainaneffectivesystemofinternalcontroloverfinancialreportingorifmanagementorourindependentregisteredpublicaccountingfirmdiscovermaterialweaknesses,wemaybeunabletoproducereliablefinancialreportsorpreventfraud,whichcouldharmourfinancialconditionandresultsofoperations,resultinalossofinvestorconfidenceandnegativelyimpactourstockprice.Further,ourSection404evaluationsmayleadustoconcludethatenhancements,modificationsorchangestoourinternalcontroloverfinancialreportingarenecessaryordesirable.Implementinganysuchchangeswoulddiverttheattentionofmanagement,couldinvolvesignificanttimeandcostsandmaynegativelyimpactourfinancialresults.

If we do not effectively manage any future growth we may experience, our resources, systems and controls may be strained and our results of operations maysuffer.

Anyfuturegrowthwemayexperiencecouldstrainourresources,management,informationandtelecommunicationsystemsandoperatingandfinancialcontrols.Tomanagefuturegrowtheffectively,includinganyexpansionofvolumeinourmanufacturingfacilityinthePRC,wemustbeabletoimproveandexpandoursystemsandcontrols.Wemaynotbeabletodothisinatimelyorcost-effectivemanner.Inaddition,ourofficershaverelativelylimitedexperienceinmanagingarapidlygrowingbusiness.Asaresult,theymaynotbeabletomanageanyfuturegrowthwemayexperience.Anyfailuretomanageanygrowthwemayexperienceorimproveorexpandourexistingsystemsandcontrols,orunexpecteddifficultiesindoingso,couldharmourbusiness.

If we acquire businesses or technologies or pursue other strategic transactions in the future, these transactions could disrupt our business and harm ouroperating results and financial condition.

Weevaluateopportunitiestoacquirebusinessesortechnologiesorpursueotherstrategictransactions,includingcollaborationorjointdevelopmentarrangementssuchasourJDLAwithSamsungthatmightcomplementourcurrentproductofferingsorenhanceourintellectualpropertyportfolioortechnicalcapabilities.Wehavenoexperienceacquiringotherbusinessesortechnologies.Acquisitionsandotherstrategictransactionsentailanumberofrisksthatcouldadverselyaffectourbusinessandoperatingresults,including,amongothers:

• difficultiesinintegratingtheoperations,technologiesorproductsofacquiredcompaniesorworkingwiththirdpartieswithwhichwemaypartneronjointdevelopmentorcollaborationrelationships;

• thediversionofmanagement'stimeandattentionfromthedailyoperationsofthebusiness;

• insufficientincreasesinrevenuestooffsetincreasedexpensesassociatedwithanacquisitionorstrategictransaction;

• difficultiesretainingbusinessrelationshipswithourexistingsuppliersandcustomersorthesuppliersandcustomersofanacquiredcompany;

• overestimationofpotentialsynergiesoradelayinrealizingthesesynergies;

S-34

TableofContents

• enteringmarketsinwhichwehavenoorlimitedexperienceandinwhichcompetitorshavestrongermarketpositions;

• thepotentiallossofkeyemployeesofourCompanyoranacquiredcompany;

• exposuretocontingentliabilitiesofanacquiredcompany;

• depletionofcashresourcestofundanacquisitionorotherstrategictransaction,ordilutionofexistingstockholdersorincreasedleveragerelativetoourearningsortoourequitycapitalizationifweissuedebtorequitysecuritiestofundthetransaction;

• adversetaxconsequences;and

• incurrenceofmaterialcharges,suchasdepreciation,deferredcompensationcharges,in-processresearchanddevelopmentcharges,theamortizationofamountsrelatedtodeferredstock-basedcompensationexpenseandidentifiablepurchasedintangibleassetsorimpairmentofgoodwill.

Ifanyoftheserisksweretooccur,wemaynotbeabletorealizetheintendedbenefitsofanacquisitionorstrategictransactionandouroperatingresults,financialconditionandbusinessprospectscouldbemateriallynegativelyaffected.

S-35

TableofContents

USE OF PROCEEDS

Wemayissueandsellsharesofourcommonstockhavingaggregatesalesproceedsofupto$9,000,000fromtimetotime.Theamountofproceedsfromthisofferingwilldependuponthenumberofsharesofourcommonstocksold,ifany,andthemarketpriceatwhichtheyaresold.

Weexpecttouseanynetproceedsfromthisofferingforgeneralcorporatepurposes,includingworkingcapitalandothergeneralandadministrativepurposes.Wemayalsouseanynetproceedsfromthisofferingforacquisitionsofcomplementaryproducts,technologiesorbusinesses,butwedonothaveanycurrentplans,agreementsorcommitmentsforanyspecificacquisitionsatthistime.Wehavenotreservedorallocatedspecificamountsforanyofthesepurposesandwecannotspecifywithcertaintyhowwewilluseanynetproceeds,andthetimingandamountofouractualexpenditureswillbebasedonmanyfactors,including,amongothers,cashflowsfromoperationsandanygrowthofourbusiness.Ourmanagementwillhavebroaddiscretioninapplyinganynetproceedsofthisoffering.Untilthefundsareusedasdescribedabove,weintendtoinvestanynetproceedsfromthisofferingininterest-bearing,investmentgradesecurities.

S-36

TableofContents

DILUTION

Ifyouinvestinourcommonstock,youwillexperienceimmediatedilutiontotheextentofthedifferencebetweenthepricepershareyoupayinthisofferingandthenettangiblebookvaluepershareofourcommonstockimmediatelyafterthisoffering.Ournettangiblebookvaluepershareisdeterminedbydividingourtotaltangibleassets,lesstotalliabilities,bythenumberofsharesofourcommonstockoutstandingasofaparticulardate.

AsofSeptember30,2017,ournettangiblebookvaluewasapproximately$(5.3)million,or$(0.07)pershareofourcommonstock,basedupon70,419,646sharesofourcommonstockoutstandingasofthatdate.

Aftergivingeffecttotheassumedsaleinthisofferingof$9,000,000ofourcommonstock,themaximumaggregategrosssalespriceofsharesofourcommonstockinthisoffering,atapriceof$0.70pershare,whichwasthelastreportedsalespriceofourcommonstockontheNASDAQGlobalMarketonNovember10,2017,andafterdeductingthecommissionsandestimatedofferingexpensespayablebyus,ourasadjustednettangiblebookvalueasofSeptember30,2017wouldhavebeenapproximately$3.3million,or$0.04pershare.Thisrepresentsanimmediateincreaseinournettangiblebookvalueof$0.11persharetoexistingstockholdersandimmediatedilutioninournettangiblebookvalueof$0.66persharetoinvestorspurchasingourcommonstockinthisoffering.Thefollowingtableillustratesthisdilutiononapersharebasis:

Theabovediscussionandtablearebasedon70,419,646sharesofcommonstockissuedandoutstandingasofSeptember30,2017andexclude,asofthatdate:

• 8,647,252sharesofcommonstockissuableuponexerciseofoutstandingoptionshavingaweighted-averageexercisepriceof$1.40,ofwhichapproximately5,979,115havingaweighted-averageexercisepriceof$1.58wereexercisable;

• 995,381sharesofcommonstockavailableforfuturegrantunderourAmendedandRestated2006EquityIncentivePlan,whichamountissubjecttoannualincreasespursuanttothetermsofsuchplan;

• 2,924,184sharesofcommonstockissuableuponexerciseofoutstandingwarrantshavingaweighted-averageexercisepriceof$0.91,ofwhichapproximately2,924,184havingaweighted-averageexercisepriceof$0.91wereexercisable;

• 2,000,000sharesofcommonstockissuableuponexerciseofanoutstandingwarrantthatisexercisableat$0.30pershareupontheredemptionbytheCompanyoftheSVICNotepursuanttothetermsthereof;and

• 12,447,780sharesofcommonstockissuableuponconversionoftheoutstandingprincipalandaccruedinterestundertheSVICNoteataconversionpriceof$1.25pershare.

TheaboveillustrationofdilutionpersharetoinvestorsparticipatinginthisofferingreflectsandassumesnoexerciseofoutstandingoptionsorwarrantstopurchaseourcommonstockandnoconversionoftheSVICNoteafterSeptember30,2017.Theexerciseofoutstandingoptionsorwarrants

S-37

Assumedofferingpricepershareofcommonstock $ 0.70NettangiblebookvaluepershareofcommonstockasofSeptember30,2017 $ (0.07) Increaseinnettangiblebookvaluepershareofcommonstockattributabletothisoffering $ 0.11 AdjustednettangiblebookvaluepershareofcommonstockasofSeptember30,2017afterthisoffering $ 0.04Dilutionpersharetoinvestorspurchasingourcommonstockinthisoffering $ 0.66

TableofContents

havinganexercisepricelessthanthepublicofferingpriceortheconversionoftheSVICNotewillincreasedilutiontoinvestorsparticipatinginthisoffering.Inaddition,wemaychoosetoraiseadditionalcapitalduetomarketconditionsorstrategicconsiderations,evenifwebelievewehavesufficientfundsforourcurrentorfutureoperatingplans.Totheextentthatadditionalcapitalisraisedthroughthesaleofequityorconvertibledebtsecurities,theissuanceofthesesecuritiescouldresultinfurtherdilutiontoourstockholders.

Additionally,wemaychoosetoconductadditionalsecuritiesofferingsforavarietyofpurposes,includingacquisitions,collaborationsorotherstrategictransactionsor,evenifwebelievewehavesufficientcashon-handforournear-termoperatingplans,forcapital-raisingpurposes,dependingonmarketconditions,capitalrequirementsorstrategicconsiderations.Totheextentweconductadditionalofferingsofoursecuritiesforcapital-raisingorotherpurposes,theissuanceofthesesecuritiescouldresultinfurtherdilutiontoinvestorsinthisoffering.See"RiskFactors—Youwillexperienceimmediatedilutioninthebookvalueofthecommonstockyoupurchaseinthisoffering"onpageS-8.

S-38

TableofContents

PLAN OF DISTRIBUTION

WehaveenteredintotheSalesAgreementwithB.RileyFBR,Inc.(the"Agent")underwhichwemayissueandsellourcommonstockfromtimetotimethroughtheAgentactingassalesagent.Salesofsharesofourcommonstock,ifany,underthisprospectussupplementandtheaccompanyingprospectusmaybemadebyanymethodthatisdeemedan"atthemarketoffering"asdefinedinRule415promulgatedundertheSecuritiesAct,includingsalesmadedirectlyonNASDAQorsimilarsecuritiesexchangeatpricesrelatedtotheprevailingmarketprices.WemayinstructtheAgentnottosellcommonstockifthesalescannotbeeffectedatorabovethepricedesignatedbyusfromtimetotime.WeortheAgentmaysuspendtheofferingofcommonstockuponnoticeandsubjecttootherconditions.

TheAgentwillofferourcommonstocksubjecttothetermsandconditionsoftheSalesAgreementasagreeduponbyusandtheAgent.EachtimewewishtoissueandsellcommonstockundertheSalesAgreement,wewillnotifytheAgentofthenumberordollarvalueofsharestobeissued,thetimeperiodduringwhichsuchsalesarerequestedtobemade,anylimitationonthenumberofsharesthatmaybesoldinoneday,anyminimumpricebelowwhichsalesmaynotbemadeandothersalesparametersaswedeemappropriate.OncewehavesoinstructedtheAgent,unlesstheAgentdeclinestoacceptthetermsofthenotice,theAgenthasagreedtouseitscommerciallyreasonableeffortsconsistentwithitsnormaltradingandsalespracticestosellsuchsharesuptotheamountspecifiedonsuchterms.TheobligationsoftheAgentundertheSalesAgreementtosellourcommonstockaresubjecttoanumberofconditionsthatwemustmeet.

WewillpaytheAgentcommissionsforitsservicesinactingasagentinthesaleofcommonstockatacommissionrateequalto3.0%ofthegrosssalespricepersharesold.TheAgentmayalsoeffectsalestoorthroughdealers,andsuchdealersmayreceivecompensationintheformofdiscounts,concessionsorcommissionsfromtheAgentand/orpurchasersofsharesofcommonstockfromwhomtheymayactasagentortowhomtheymaysellasprincipal.Becausethereisnominimumofferingamountrequiredasaconditiontoclosethisoffering,theactualtotalpublicofferingamount,commissionsandproceedstous,ifany,arenotdeterminableatthistime.WehavealsoagreedtoreimbursetheAgentforcertainspecifiedexpenses,includingthefeesanddisbursementsofitslegalcounselinanamountnottoexceed$35,000.Inaddition,wehaveagreedtopayC-Hafeenottoexceed1.0%ofthegrossproceedsfromsharesofourcommonstocksoldinthisofferingbytheAgentthroughandincludingFebruary16,2018,inexchangeforC-H'swaiver,solelywithrespecttothisoffering,ofitsrightoffirstrefusalinaccordancewiththeengagementletterenteredintobyC-HandusonJuly31,2017inconnectionwithourpriorpublicofferinginAugust2017.Weestimatethatthetotalexpensesfortheoffering,excludingcommissionsandreimbursementspayabletotheAgentunderthetermsoftheSalesAgreementandthefeespayabletoC-Hinconnectionwithitsrightoffirstrefusal,willbeapproximately$130,000.

Settlementforsalesofcommonstockwillgenerallyoccuronthesecondbusinessdayfollowingthedateonwhichanysalesaremade,oronsomeotherdatethatisagreeduponbyusandtheAgentinconnectionwithaparticulartransaction,inreturnforpaymentofthenetproceedstous.Thereisnoarrangementforfundstobereceivedinanescrow,trustorsimilararrangement.

Inconnectionwiththesaleofthecommonstockonourbehalf,theAgentmaybedeemedtobean"underwriter"withinthemeaningoftheSecuritiesActandthecompensationoftheAgentmaybedeemedtobeunderwritingcommissionsordiscounts.WehaveagreedtoprovideindemnificationandcontributiontotheAgentagainstcertaincivilliabilities,includingliabilitiesundertheSecuritiesAct.

TheofferingofourcommonstockpursuanttotheSalesAgreementwillterminateupontheearlierof(i)thesaleofallofourcommonstocksubjecttotheSalesAgreement,or(ii)terminationoftheSalesAgreementasprovidedtherein.

TheAgentanditsaffiliatesmayinthefutureprovidevariousinvestmentbankingandotherfinancialservicesforusandouraffiliates,forwhichservicestheymayinthefuturereceivecustomaryfees.

S-39

TableofContents

LEGAL MATTERS

ThevalidityofthesecuritiesofferedbythisprospectussupplementhasbeenpasseduponforusbyMorrison&FoersterLLP,SanDiego,California.DuaneMorrisLLP,Newark,NewJersey,isactingascounselfortheAgentinconnectionwiththisoffering.

EXPERTS

TheconsolidatedfinancialstatementsofNetlist,Inc.anditssubsidiariesincludedintheCompany'sAnnualReportonForm10-KfortheyearendedDecember31,2016havebeenauditedbyKMJCorbin&CompanyLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportwhichisincorporatedbyreferenceherein,andhasbeensoincorporatedinrelianceuponsuchreportandupontheauthorityofsuchfirmasexpertsinaccountingandauditing.

WHERE YOU CAN FIND MORE INFORMATION

Wefileannual,quarterlyandcurrentreportsandproxystatementsandotherinformationwiththeSEC.YoumayreadandcopyanydocumentthatwefileattheSEC'sPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549.PleasecalltheSECat1-800-SEC-0330forfurtherinformationonthePublicReferenceRoom.OurSECfilingsarealsoavailableontheSEC'swebsiteathttp://www.sec.gov.CopiesofcertaininformationfiledbyuswiththeSECarealsoavailableonourwebsiteathttp://www.netlist.com.Wehavenotincorporatedbyreferenceintothisprospectustheinformationonourwebsite,andyoushouldnotconsiderittobeapartofthisdocument.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

TheSECallowsusto"incorporatebyreference"intothisprospectussupplementandtheaccompanyingbaseprospectuscertaininformationwefilewithit.Thismeansthatwecandiscloseimportantinformationtoyouinthisprospectussupplementbyreferringyoutothosedocuments.Theseincorporateddocumentscontainimportantbusinessandfinancialinformationaboutusthatisnotincludedinordeliveredwiththisprospectussupplementortheaccompanyingbaseprospectus.Theinformationincorporatedbyreferenceisconsideredtobepartofthisprospectussupplementandtheaccompanyingbaseprospectus,andlaterinformationfiledwiththeSECwillautomaticallyupdateandsupersedetheinformationcontainedinthisprospectussupplementandtheaccompanyingbaseprospectus.

WeincorporatebyreferencethedocumentslistedbelowaswellasanyfuturefilingsmadewiththeSECunderSections13(a),13(c),14or15(d)oftheExchangeAct,fromthedateofthisprospectussupplementtothecompletionofallofferingsoftheparticularsecuritiesofferedbythisprospectussupplement,exceptthatwedonotincorporateanydocumentorportionofadocumentthatis"furnished"totheSEC,butnotdeemed"filed."ThefollowingdocumentsfiledwiththeSECareincorporatedbyreferenceinthisprospectus:

• ourAnnualReportonForm10-KforthefiscalyearendedDecember31,2016,filedwiththeSEConMarch31,2017,includingtheinformationspecificallyincorporatedbyreferenceintosuchAnnualReportfromourdefinitiveproxystatementonSchedule14AforourAnnualMeetingofStockholdersheldonMay31,2017andfiledwiththeSEConMay1,2017;

• ourQuarterlyReportsonForm10-QforthefiscalquarterendedApril1,2017,filedwiththeSEConMay16,2017,thefiscalquarterendedJuly1,2017,filedwiththeSEConAugust15,2017,andthefiscalquarterendedSeptember30,2017,filedwiththeSEConNovember14,2017;

• ourCurrentReportsonForm8-KfiledonMarch29,2017,April14,2017,April17,2017,May5,2017,May9,2017,June1,2017,August17,2017andSeptember29,2017;and

S-40

TableofContents

• thedescriptionofourcommonstockcontainedinourRegistrationStatementonForm8-AfiledwiththeSEConNovember27,2006,includinganyamendmentsorreportsfiledforthepurposeofupdatingsuchdescription.

Wewillprovidewithoutchargetoeachperson,includinganybeneficialowner,towhomaprospectusisdelivered,onwrittenororalrequestofthatperson,acopyofanyorallofthedocumentsweareincorporatingbyreferenceintothisprospectussupplementortheaccompanyingbaseprospectus,otherthanexhibitstothosedocumentsunlesssuchexhibitsarespecificallyincorporatedbyreferenceintothosedocuments.Suchwrittenrequestsshouldbeaddressedto:

Netlist,Inc.175TechnologyDrive,Suite150

Irvine,California92618Attention:InvestorRelations

YoumaydirecttelephonerequeststoourInvestorRelationsDepartmentat(212)986-6667.

S-41

TableofContents

PROSPECTUS

NETLIST, INC.$40,000,000

COMMON STOCK PREFERRED STOCK

WARRANTS UNITS

Wemayofferandsellfromtimetotimetheabovesecuritiesinoneormoreclasses,inoneormoretransactions,separatelyortogetherinanycombinationandasseparateseries,andinamounts,atpricesandontermsthatwewilldetermineatthetimesoftheofferings.Wemayalsoofferanyofthesesecuritiesthatmaybeissuableupontheconversion,exerciseorexchangeofpreferredstockorwarrants.Theaggregateinitialofferingpriceofthesecuritiesthatwemayofferthroughthisprospectuswillbeupto$40,000,000.

Wewillprovidespecifictermsofanyofferinginsupplementstothisprospectus,whichwewilldelivertogetherwiththeprospectusatthetimeofsale.Thesupplementsmayadd,updateorchangeinformationcontainedinthisprospectus.Youshouldreadthisprospectusandanyprospectussupplementcarefullybeforeyouinvest.Thisprospectusmaynotbeusedtoofferandsellsecuritiesunlessaccompaniedbyaprospectussupplement.

Wemayofferthesecuritiesindependentlyortogetherinanycombinationforsaledirectlytopurchasers,throughoneormoreunderwriters,dealersoragents,orthroughunderwritingsyndicatesmanagedorco-managedbyoneormoreunderwriters,tobedesignatedatafuturedate,onacontinuousordelayedbasis.

OurcommonstockislistedontheNASDAQCapitalMarketunderthesymbol"NLST."OnAugust17,2016,thelastreportedsalepriceofourcommonstockwas$1.60pershare.

Investing in our securities involves risks. Risks associated with an investment in our securities will be described in theapplicable prospectus supplement and certain of our filings with the Securities and Exchange Commission, as describedunder the caption "Risk Factors" on page 1 of this prospectus.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED ORDISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATIONTO THE CONTRARY IS A CRIMINAL OFFENSE.

ThedateofthisprospectusisSeptember2,2016

TableofContents

TABLE OF CONTENTS

ABOUT THIS PROSPECTUS

ThisprospectusispartofaregistrationstatementthatwefiledwiththeU.S.SecuritiesandExchangeCommission,orSEC,usinga"shelf"registrationprocess.Underthisshelfregistrationprocess,wemay,fromtimetotime,sellthesecuritiesorcombinationsofthesecuritiesdescribedinthisprospectusinoneormoreofferingsinamountsthatwewilldeterminefromtimetotime.Forfurtherinformationaboutourbusinessandthesecurities,youshouldrefertotheregistrationstatementcontainingthisprospectusanditsexhibits.Theexhibitstoourregistrationstatementcontainthefulltextofcertaincontractsandotherimportantdocumentswehavesummarizedinthisprospectus.Sincethesesummariesmaynotcontainalltheinformationthatyoumayfindimportantindecidingwhethertopurchasethesecuritiesweoffer,youshouldreviewthefulltextofthesedocuments.WehavefiledandplantocontinuetofileotherdocumentswiththeSECthatcontaininformationaboutusandourbusiness.Also,wewillfilelegaldocumentsthatcontrolthetermsofthesecuritiesofferedbythisprospectusasexhibitstothereportswefilebytheSEC.TheregistrationstatementandotherreportscanbeobtainedfromtheSECasindicatedundertheheading"WhereYouCanFindMoreInformation."

Thisprospectusprovidesyouwithageneraldescriptionofthesecuritiesthatwemayoffer.Eachtimeweoffersecuritiespursuanttothisprospectus,wewillprovideaprospectussupplementand/orotherofferingmaterialthatwillcontainspecificinformationaboutthetermsofthatoffering.Whenwerefertoa"prospectussupplement,"wearealsoreferringtoanyfreewritingprospectusorotherofferingmaterialauthorizedbyus.Theprospectussupplementmayalsoadd,updateorchangeinformationcontainedinthisprospectus.Ifthereisanyinconsistencybetweentheinformationinthisprospectusandtheapplicableprospectussupplement,youshouldrelyontheinformationintheprospectussupplementorincorporatedinformationhavingalaterdate.Youshouldreadthisprospectusandanyprospectussupplementtogetherwithadditionalinformationdescribedundertheheadings"IncorporationofCertainDocumentsbyReference"and"WhereYouCanFindMoreInformation."

Youshouldrelyonlyontheinformationprovidedinthisprospectus,inanyprospectussupplement,oranyotherofferingmaterialthatweauthorize,includingtheinformationincorporatedbyreference.Wehavenotauthorizedanyonetoprovideyouwithdifferentinformation.Youshouldnotassumethattheinformationinthisprospectus,anysupplementtothisprospectus,oranyotherofferingmaterialthatweauthorize,isaccurateatanydateotherthanthedateindicatedonthecoverpageofthesedocumentsorthedateofthestatementcontainedinanyincorporateddocuments,respectively.This

i

Page ABOUTNETLIST,INC. 1RISKFACTORS 1SPECIALNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS 1USEOFPROCEEDS 2SECURITIESWEMAYOFFER 2DESCRIPTIONOFCAPITALSTOCK 3DESCRIPTIONOFWARRANTS 5DESCRIPTIONOFUNITS 6PLANOFDISTRIBUTION 7LEGALMATTERS 8EXPERTS 9INCORPORATIONOFCERTAINDOCUMENTSBYREFERENCE 9WHEREYOUCANFINDMOREINFORMATION 9

TableofContents

prospectusisnotanoffertosellorasolicitationofanoffertobuyanysecuritiesotherthanthesecuritiesreferredtointheprospectussupplement.Thisprospectusisnotanoffertosellorasolicitationofanoffertobuysuchsecuritiesinanycircumstancesinwhichsuchofferorsolicitationisunlawful.Youshouldnotinterpretthedeliveryofthisprospectus,oranysaleofsecurities,asanindicationthattherehasbeennochangeinouraffairssincethedateofthisprospectus.Youshouldalsobeawarethatinformationinthisprospectusmaychangeafterthisdate.Theinformationcontainedinthisprospectusoraprospectussupplementoramendment,orincorporatedhereinorthereinbyreference,isaccurateonlyasofthedateofthisprospectusorprospectussupplementoramendment,asapplicable,regardlessofthetimeofdeliveryofthisprospectusorprospectussupplementoramendment,asapplicable,orofanysaleoftheshares.Unlessthecontextotherwiserequires,inthisprospectus"Netlist,""we,""us,"and"our"refertoNetlist,Inc.anditsconsolidatedsubsidiaries.

ii

TableofContents

ABOUT NETLIST, INC.

Weprovidehigh-performancemodularmemorysubsystemstotheworld'spremieroriginalequipmentmanufacturers.Wespecializeinhybridmemory—themergingofdynamicrandomaccessmemory("DRAM")andNANDflashrawmaterialstocreatememorysolutions.Ourpatentedmemorytechnologiesprovidesuperiorperformanceandhighdensityinacostefficientsolution.Fromdatabasetoenterpriseapplications,weservediverseindustriesthatrequiresuperiormemoryperformancetoempowercriticalbusinessdecisionsintoday'sdata-drivenenvironment.

Wehavealonghistoryofintroducingdisruptivenewproductssuchasthefirstload-reduceddualin-linememorymodule("DIMM"),HyperCloud®,basedonourdistributedbufferarchitecturelateradoptedbytheindustryforDDR4LRDIMM.WewerealsothefirsttobringNANDflashtothememorychannelwithourNVvault®NVDIMM.Theseinnovativeproductsbuiltonourearlypioneeringworkinareassuchasembeddingpassivesintoprintedcircuitboardstofreeupboardrealestate,doublingdensitiesviaquad-rankdoubledataratetechnology,andadvancingotheroff-chiptechnologythatresultinimprovedperformanceandlowercostscomparedtoconventionalmemory.WecontinuethistraditionwiththeintroductionofHybriDIMM™inAugust2016,aStorageClassMemory("SCM")productbuiltoncommodityDRAMandflash.

Weholdasignificantportfolioofpatentsintheareasofhybridmemory,storageclassmemory,rankmultiplicationandloadreduction,amongothers.Thestrengthofourpatentportfolioreflectsourmanyyearsofresearchanddevelopmentandtrackrecordofbringinginnovativeproductstomarket.

WeareheadquarteredinIrvine,CaliforniaandhavemanufacturingfacilitiesinSuzhou,People'sRepublicofChina("PRC").Ourprincipalexecutiveofficesarelocatedat175TechnologyDrive,Suite150,Irvine,California92618andourtelephonenumberatthataddressis(949)435-0025.

RISK FACTORS

Investinginoursecuritiesinvolvesrisk.Beforemakinganinvestmentdecision,youshouldcarefullyconsidertherisksdescribedundertheheading"RiskFactors"containedintheapplicableprospectussupplementandanyrelatedfreewritingprospectusandinourmostrecentAnnualReportonForm10-KandsubsequentQuarterlyReportsonForm10-Q,togetherwithalloftheotherinformationappearingin,orincorporatedbyreferenceinto,thisprospectusandanyapplicableprospectussupplement.Theseriskscouldmateriallyandadverselyaffectourbusiness,resultsofoperationsandfinancialconditionandcouldresultinapartialorcompletelossofyourinvestment.Additionalrisksnotpresentlyknowntousorthatwecurrentlybelieveareimmaterialmayalsosignificantlyimpairourbusinessoperationsandfinancialcondition.See"IncorporationofCertainDocumentsbyReference"and"WhereYouCanFindMoreInformation."

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Thisprospectusandtheapplicableprospectussupplementincludeandincorporatebyreference"forward-lookingstatements."Weintendtheseforward-lookingstatementstobecoveredbythesafeharborprovisionsforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995.Wordssuchas"anticipate,""estimate,""expect,""project,""intend,""may,""plan,""predict,""believe,""should"andsimilarwordsorexpressionsareintendedtoidentifyforward-lookingstatements,althoughnotallforward-lookingstatementscontaintheseidentifyingwords.Theseforward-lookingstatementsincludeanystatements,otherthanstatementsofhistoricalfacts,includedorincorporatedinthisprospectusregardingourstrategy,futureoperations,financialposition,futurerevenues,projectedcosts,prospects,plansandobjectivesofmanagement.Allforward-lookingstatementsreflectthepresentexpectationoffutureeventsofourmanagementandaresubjecttoknownandunknownrisks,uncertaintiesandassumptionsthatcouldcauseactualresultstodiffermateriallyfromthosedescribedinanyforward-lookingstatements.Theserisksanduncertainties

1

TableofContents

include,amongothers,changesinanduncertaintyofcustomeracceptanceofanddemandforourexistingproductsandtechnologiesandproductsandtechnologiesunderdevelopment;risksassociatedwiththeconcentrationofproductsalesamongalimitednumberofcustomers;thesuccessofproduct,licensingandjointdevelopmentpartnerships;continuingdevelopment,qualificationandvolumeproductionofHybriDIMM™,EXPRESSvault™,NVvault™,HyperCloud®andVLPPlanar-XRDIMM;thetimingandmagnitudeofanycontinueddecreaseinoursales;ourabilitytoleverageourNVvault™andEXPRESSvault™technologyintoamorediversecustomerbase;ourneedtoraiseadditionalcapitalandourabilitytoobtainfinancingwhennecessary;therapidly-changingnatureoftechnologyinourindustry;risksassociatedwithintellectualproperty,includingpatentinfringementlitigationagainstusaswellasthecostsandunpredictabilityoflitigationoverinfringementofourintellectualpropertyandthepossibilityofourpatentsbeingreexaminedorreviewedbytheU.S.PatentandTrademarkOfficeandPatentTrialandAppealBoard;volatilityinthepricingofcomponentsofourproducts;changesinanduncertaintyofcustomeracceptanceof,anddemandfor,ourexistingproductsandproductsunderdevelopment,includinguncertaintyofand/ordelaysinproductordersandproductqualifications;delaysinourandourcustomers'productreleasesanddevelopment;introductionsofnewproductsbycompetitors;changesinend-userdemandfortechnologysolutions;ourabilitytoattractandretainskilledpersonnel;ourrelianceonsuppliersofcriticalcomponentsandvendorsinthesupplychain;fluctuationsinthemarketpriceofcriticalcomponents;evolvingindustrystandards;thepoliticalandregulatoryenvironmentinthePRC;andgeneraleconomicandmarketconditions.Otherrisksanduncertaintiesaredescribedingreaterdetailundertheheading"RiskFactors"containedintheapplicableprospectussupplementandanyrelatedfreewritingprospectus,andinourmostrecentannualreportonForm10-KandinourmostrecentquarterlyreportonForm10-Q,aswellasanyamendmentstheretoreflectedinsubsequentfilingswiththeSEC.Giventheserisks,uncertaintiesandotherimportantfactors,youshouldnotplaceunduerelianceontheseforward-lookingstatements.Youshouldcarefullyreadboththisprospectus,theapplicableprospectussupplementandanyrelatedfreewritingprospectus,togetherwiththeinformationincorporatedhereinbyreferenceasdescribedundertheheadings"IncorporationofCertainDocumentsbyReference"and"WhereYouCanFindAdditionalInformation,"completelyandwiththeunderstandingthatouractualfutureresultsmaybemateriallydifferentfromwhatweexpect.

Theseforward-lookingstatementsrepresentourestimatesandassumptionsonlyasofthedatemade.Weundertakenodutytoupdatetheseforward-lookingstatementsafterthedateofthisprospectus,exceptasrequiredbylaw,eventhoughoursituationmaychangeinthefuture.Wequalifyallofourforward-lookingstatementsbythesecautionarystatements.

USE OF PROCEEDS

Unlessweinformyouotherwiseintheprospectussupplement,weexpecttousethenetproceedsfromthesaleofthesecuritiesforcapitalexpenditures,workingcapitalandothergeneralcorporatepurposes.Pendinganyspecificapplication,wemayinitiallyinvestthenetproceedsinshort-termmarketablesecurities.

Wehavenotdeterminedtheamountsweplantospendontheareaslistedaboveorthetimingoftheseexpenditures.Asaresult,ourmanagementwillhavebroaddiscretiontoallocatethenetproceedsofanyoffering.

SECURITIES WE MAY OFFER

Wemayissuefromtimetotime,inoneormoreofferingsthefollowingsecurities:

• sharesofcommonstock;

• sharesofpreferredstock;

2

TableofContents

• warrantsexercisableforcommonstockorpreferredstock;and

• unitsofcommonstock,preferredstockorwarrants,inanycombination.

Thisprospectuscontainsasummaryofthematerialgeneraltermsofthevarioussecuritiesthatwemayoffer.Thespecifictermsofthesecuritieswillbedescribedinaprospectussupplement,informationincorporatedbyreference,orfreewritingprospectus,whichmaybeinadditiontoordifferentfromthegeneraltermssummarizedinthisprospectus.Whereapplicable,theprospectussupplement,informationincorporatedbyreferenceorfreewritingprospectuswillalsodescribeanymaterialUnitedStatesfederalincometaxconsiderationsrelatingtothesecuritiesofferedandindicatewhetherthesecuritiesofferedareorwillbelistedonanysecuritiesexchange.Thesummariescontainedinthisprospectusandinanyprospectussupplements,informationincorporatedbyreferenceorfreewritingprospectusmaynotcontainalloftheinformationthatyouwouldfinduseful.Accordingly,youshouldreadtheactualdocumentsrelatingtoanysecuritiessoldpursuanttothisprospectus.See"AvailableInformation"and"IncorporationofCertainInformationbyReference"forinformationabouthowtoobtaincopiesofthosedocuments.

Thetermsofanyparticularoffering,theinitialofferingpriceandthenetproceedstouswillbecontainedintheprospectussupplement,informationincorporatedbyreferenceorfreewritingprospectus,relatingtosuchoffering.

DESCRIPTION OF CAPITAL STOCK

OurRestatedCertificateofIncorporationprovidesthatweareauthorizedtoissue100,000,000sharesofcapitalstock.Ourauthorizedcapitalstockiscomprisedof90,000,000sharesofcommonstock,$0.001parvaluepershare,and10,000,000sharesofserialpreferredstock,parvalue$0.001pershare.

ThefollowingdescriptionisasummaryofthematerialtermsofourcapitalstockandcertainprovisionsofourRestatedCertificateofIncorporationandAmendedandRestatedBylaws.Thisdescriptiondoesnotpurporttobecomplete.ForinformationonhowyoucanobtainourRestatedCertificateofIncorporationandAmendedandRestatedBylaws,see"WhereYouCanFindMoreInformation."

Common Stock

Weareauthorizedtoissueupto90,000,000sharesofourcommonstock,parvalue$0.001pershare.

Theholdersofourcommonstockareentitledtoonevoteforeachshareheldofrecordonallmatterssubmittedtoavoteofthestockholders.Ourstockholdersdonothavecumulativevotingrightsintheelectionofdirectors.Accordingly,holdersofamajorityofthesharesvotingareabletoelectallofourdirectors.Subjecttopreferencesthatmayapplytoanythenoutstandingsharesofpreferredstock,theholdersofoutstandingsharesofourcommonstockareentitledtoreceivedividendsoutofassetslegallyavailablefordistributionatthetimesandintheamounts,ifany,thatourBoardofDirectorsmaydeterminefromtimetotime.Intheeventofourliquidation,dissolutionorwindingup,subjecttotherightsofeachseriesofourpreferredstock,whichmay,fromtimetotimecomeintoexistence,holdersofourcommonstockareentitledtoshareratablyinallofourassetsremainingafterwepayourliabilities.Holdersofourcommonstockhavenopreemptiveorothersubscriptionorconversionrights.Ourcommonstockisnotredeemableandtherearenosinkingfundprovisionsapplicabletoourcommonstock.

3

TableofContents

Preferred Stock

OurBoardofDirectorsisauthorized,subjecttolimitationsimposedbyDelawarelaw,toissueupto10,000,000sharesofpreferredstock,parvalue$0.001pershare,inoneormoreseries,withoutstockholderapproval.OurBoardofDirectorsisauthorizedtofixthenumberofsharesofpreferredstockandtodetermineor(solongasnosharesofsuchseriesarethenoutstanding)alterforeachsuchseries,suchvotingpowers,fullorlimited,ornovotingpowers,andsuchdesignations,preferences,andrelative,participating,optional,orotherrightsandsuchqualifications,limitations,orrestrictionsthereof,asshallbestatedandexpressedintheresolutionorresolutionsadoptedbytheBoardofDirectorsprovidingfortheissuanceofsuchsharesandasmaybepermittedbyDelawareGeneralCorporationLaw.Therights,privileges,preferencesandrestrictionsofanysuchadditionalseriesmaybesubordinatedto,pari passu with,orseniortoanyofthoseofanypresentorfutureclassorseriesofourcapitalstock.OurBoardofDirectorsisalsoauthorizedtodecreasethenumberofsharesofanyseries,priororsubsequenttotheissueofthatseries,butnotbelowthenumberofsharesofsuchseriesthenoutstanding.Incasethenumberofsharesofanyseriesshallbesodecreased,thesharesconstitutinganydecreaseshallresumethestatuswhichtheyhadpriortotheadoptionoftheresolutionoriginallyfixingthenumberofsharesofsuchseries.

Thissectiondescribesthegeneraltermsandprovisionsofourpreferredstock.Theapplicableprospectussupplementwilldescribethespecifictermsofanysharesofpreferredstockofferedthroughthatprospectussupplement,aswellasanygeneraltermsdescribedinthissectionthatwillnotapplytothosesharesofpreferredstock.WewillfileacopyofthecertificateofdesignationthatcontainsthetermsofeachnewseriesofpreferredstockwiththeSECeachtimeweissueanewseriesofpreferredstock.Eachcertificateofdesignationwillestablishthenumberofsharesincludedinadesignatedseriesandfixthedesignation,powers,privileges,preferencesandrightsofthesharesofeachseriesaswellasanyapplicablequalifications,limitationsorrestrictions.YoushouldrefertotheapplicablecertificateofdesignationaswellasourRestatedCertificateofIncorporationbeforedecidingtobuysharesofourpreferredstockasdescribedintheapplicableprospectussupplement.

Anti-Takeover Provisions of Delaware Law and Charter Provisions

Interested Stockholder Transactions

WearesubjecttoSection203oftheGeneralCorporationLawoftheStateofDelaware,whichprohibitsaDelawarecorporationfromengaginginany"businesscombination"withany"interestedstockholder"foraperiodofthreeyearsafterthedatethatsuchstockholderbecameaninterestedstockholder,withthefollowingexceptions:

• beforesuchdate,theboardofdirectorsofthecorporationapprovedeitherthebusinesscombinationorthetransactionthatresultedinthestockholderbecominganinterestedholder;

• uponconsummationofthetransactionthatresultedinthestockholderbecominganinterestedstockholder,theinterestedstockholderownedatleast85%ofthevotingstockofthecorporationoutstandingatthetimethetransactionbegan,excluding,forpurposesofdeterminingthenumberofsharesoutstanding,thosesharesownedbypersonswhoaredirectorsandalsoofficersandbyemployeestockplansinwhichemployeeparticipantsdonothavetherighttodetermineconfidentiallywhethersharesheldsubjecttotheplanwillbetenderedinatenderorexchangeoffer;or

• onoraftersuchdate,thebusinesscombinationisapprovedbytheboardofdirectorsandauthorizedatanannualorspecialmeetingofthestockholders,andnotbywrittenconsent,bytheaffirmativevoteofatleast662/3%oftheoutstandingvotingstockthatisnotownedbytheinterestedstockholder.

4

TableofContents

Section203defines"businesscombination"toincludethefollowing:

• anymergerorconsolidationinvolvingthecorporationandtheinterestedstockholder;

• anysale,lease,exchange,mortgage,pledge,transferorotherdispositionof10%ormoreoftheassetsofthecorporationinvolvingtheinterestedstockholder;

• subjecttocertainexceptions,anytransactionthatresultsintheissuanceortransferbythecorporationofanystockofthecorporationtotheinterestedstockholder;

• anytransactioninvolvingthecorporationthathastheeffectofincreasingtheproportionateshareofthestockoranyclassorseriesofthecorporationbeneficiallyownedbytheinterestedstockholder;or

• thereceiptbytheinterestedstockholderofthebenefitofanyloans,advances,guarantees,pledgesorotherfinancialbenefitsbyorthroughthecorporation.

Ingeneral,Section203defines"interestedstockholder"asanentityorpersonbeneficiallyowning15%ormoreoftheoutstandingvotingstockofthecorporationoranyentityorpersonaffiliatedwithorcontrollingorcontrolledbysuchentityorperson.

Certificate of Incorporation and Bylaws

ProvisionsinourRestatedCertificateofIncorporationandAmendedandRestatedBylawsmayhavetheeffectofdiscouragingcertaintransactionsthatmayresultinachangeincontrolofourcompany.Someoftheseprovisionsprovidethatstockholderscannotactbywrittenconsentandimposeadvancenoticerequirementsandprocedureswithrespecttostockholderproposalsandthenominationofcandidatesforelectionasdirectors.OurRestatedCertificateofIncorporationallowsustoissuesharesofpreferredstock(see"BlankCheckPreferredStock")orcommonstockwithoutanyactionbystockholders.OurdirectorsandourofficersareindemnifiedbyustothefullestextentpermittedbyapplicablelawpursuanttoourRestatedCertificateofIncorporation.OurBoardofDirectorsisexpresslyauthorizedtomake,alterorrepealourAmendedandRestatedBylaws.TheseprovisionsmaymakeitmoredifficultforstockholderstotakespecificcorporateactionsandmaymakeitmoredifficultordiscourageanattempttoobtaincontroloftheCompanybymeansofaproxycontest,tenderoffer,mergerorotherwise.

Blank Check Preferred Stock

OurRestatedCertificateofIncorporationauthorizesourBoardofDirectorstoapprovetheissuanceofupto10,000,000sharesofpreferredstock,withoutfurtherapprovalofthestockholders,andtodeterminetherightsandpreferencesofanyseriesofpreferredstock.TheBoardcouldissueoneormoreseriesofpreferredstockwithvoting,conversion,dividend,liquidationorotherrightsthatwouldadverselyaffectthevotingpowerandownershipinterestofholdersofourcommonstock.Thisauthoritymayhavetheeffectofdeterringhostiletakeovers,delayingorpreventingachangeincontrolanddiscouragingbidsforourcommonstockatapremiumoverthemarketprice.

DESCRIPTION OF WARRANTS

Wemayissuewarrantstopurchasecommonstock,preferredstockorothersecuritiesdescribedinthisprospectus.Wemayissuewarrantsindependentlyoraspartofaunitwithothersecurities.Warrantssoldwithothersecuritiesasaunitmaybeattachedtoorseparatefromtheothersecurities.Theprospectussupplementrelatingtoanywarrantsweareofferingwilldescribespecifictermsrelatingtotheoffering,includingadescriptionofanyothersecuritiessoldtogetherwiththewarrants.Thesetermswillincludesomeorallofthefollowing:

• thetitleofthewarrants;

5

TableofContents

• theaggregatenumberofwarrantsoffered;

• thepriceorpricesatwhichthewarrantswillbeissued;

• thedesignation,numberandtermsofanycommonstock,preferredstockorothersecuritiespurchasableuponexerciseofthewarrantsandproceduresbywhichthosenumbersmaybeadjusted;

• theexercisepriceofthewarrants,includinganyprovisionsforchangesoradjustmentstotheexerciseprice,andtermsrelatingtothecurrencyinwhichsuchpriceispayable;

• thedatesorperiodsduringwhichthewarrantsareexercisable;

• thedesignationandtermsofanysecuritieswithwhichthewarrantsareissuedasaunit;

• ifthewarrantsareissuedasaunitwithanothersecurity,thedateonorafterwhichthewarrantsandtheothersecuritywillbeseparatelytransferable;

• anyminimumormaximumamountofwarrantsthatmaybeexercisedatanyonetime;

• anytermsrelatingtothemodificationofthewarrants;

• adiscussionofmaterialfederalincometaxconsiderations,ifapplicable;and

• anyothertermsofthewarrantsandanyothersecuritiessoldtogetherwiththewarrants,including,butnotlimitedto,theterms,proceduresandlimitationsrelatingtothetransferability,exchange,exerciseorredemptionofthewarrants.

Theapplicableprospectussupplementwilldescribethespecifictermsofanywarrantunits.

Thedescriptionsofthewarrantsinthisprospectusandinanyprospectussupplementaresummariesofthematerialprovisionsoftheapplicablewarrantagreements.Thesedescriptionsdonotrestatethoseagreementsintheirentiretyanddonotcontainalloftheinformationthatyoumayfinduseful.Weurgeyoutoreadtheapplicableagreementsbecausethey,andnotthesummaries,definemanyofyourrightsasholdersofthewarrantsoranywarrantunits.Formoreinformation,pleasereviewtheformoftherelevantagreements,whichwillbefiledwiththeSECpromptlyaftertheofferingofwarrantsorwarrantunitsandwillbeavailableasdescribedundertheheading"WhereYouCanFindMoreInformation."

DESCRIPTION OF UNITS

Asspecifiedintheapplicableprospectussupplement,wemayissueunitscomprisedofoneormoreoftheothersecuritiesdescribedinthisprospectusinanycombination.Eachunitwillbeissuedsothattheholderoftheunitisalsotheholderofeachsecurityincludedintheunit.Thus,theholderofaunitwillhavetherightsandobligationsofaholderofeachincludedsecurity.Theprospectussupplementwilldescribe:

• thedesignationandtermsoftheunitsandofthesecuritiescomprisingtheunits,includingwhetherandunderwhatcircumstancesthesecuritiescomprisingtheunitsmaybeheldortransferredseparately;

• adescriptionofthetermsofanyunitagreementgoverningtheunits;

• adescriptionoftheprovisionsforthepayment,settlement,transferorexchangeoftheunits;

• adiscussionofmaterialfederalincometaxconsiderations,ifapplicable;and

• whethertheunitswillbeissuedinfullyregisteredorglobalform.

6

TableofContents

Thedescriptionsoftheunitsandanyapplicableunderlyingsecurityorpledgearrangementsinthisprospectusandinanyprospectussupplementaresummariesofthematerialprovisionsoftheapplicableagreements.Thesedescriptionsdonotrestatethoseagreementsintheirentiretyandmaynotcontainalltheinformationthatyoumayfinduseful.Weurgeyoutoreadtheapplicableagreementsbecausethey,andnotthesummaries,definemanyofyourrightsasholdersoftheunits.Formoreinformation,pleasereviewtheformoftherelevantagreements,whichwillbefiledwiththeSECpromptlyaftertheofferingofunitsandwillbeavailableasdescribedundertheheading"WhereYouCanFindMoreInformation."

PLAN OF DISTRIBUTION

Wemaysellthesecuritiesfromtimetotimepursuanttounderwrittenpublicofferings,negotiatedtransactions,blocktradesoracombinationofthesemethods.Wemaysellthesecuritiestoorthroughunderwritersordealers,throughagents,ordirectlytooneormorepurchasers.

Wemaydistributesecuritiesfromtimetotimeinoneormoretransactions:

• atafixedpriceorprices,whichmaybechanged;

• atmarketpricesprevailingatthetimeofsale;

• atpricesrelatedtosuchprevailingmarketprices;or

• atnegotiatedprices.

Unlessstatedotherwiseintheapplicableprospectussupplement,theobligationsofanyunderwritertopurchasesecuritieswillbesubjecttocertainconditions,andanunderwriterwillbeobligatedtopurchasealloftheapplicablesecuritiesifanyarepurchased.Ifadealerisusedinasale,wemaysellthesecuritiestothedealerasprincipal.Thedealermaythenresellthesecuritiestothepublicatvaryingpricestobedeterminedbythedealeratthetimeofresale.

Weorouragentsmaysolicitofferstopurchasesecuritiesfromtimetotime.Unlessstatedotherwiseintheapplicableprospectussupplement,anyagentwillbeactingonabesteffortsbasisfortheperiodofitsappointment.

Inconnectionwiththesaleofsecurities,underwritersoragentsmayreceivecompensation(intheformofdiscounts,concessionsorcommissions)fromusorfrompurchasersofsecuritiesforwhomtheymayactasagents.Underwritersmaysellsecuritiestoorthroughdealers,andsuchdealersmayreceivecompensationintheformofdiscounts,concessionsorcommissionsfromtheunderwritersand/orcommissionsfromthepurchasersforwhomtheymayactasagents.Underwriters,dealersandagentsthatparticipateinthedistributionofsecuritiesmaybedeemedtobeunderwriters,asthattermisdefinedintheSecuritiesAct,andanydiscountsorcommissionsreceivedbythemfromusandanyprofitsontheresaleofthesecuritiesbythemmaybedeemedtobeunderwritingdiscountsandcommissionsundertheSecuritiesAct.Wewillidentifyanysuchunderwriteroragent,andwewilldescribeanycompensationpaidtothem,intherelatedprospectussupplement.

Underwriters,dealersandagentsmaybeentitledunderagreementswithustoindemnificationagainstandcontributiontowardcertaincivilliabilities,includingliabilitiesundertheSecuritiesAct.

Ifstatedintheapplicableprospectussupplement,wewillauthorizeagentsandunderwriterstosolicitoffersbycertainspecifiedinstitutionsorotherpersonstopurchasesecuritiesatthepublicofferingpricesetforthintheprospectussupplementunderdelayeddeliverycontractsprovidingforpaymentanddeliveryonaspecifieddateinthefuture.Institutionswithwhichthesecontractsmaybemadeincludecommercialandsavingsbanks,insurancecompanies,pensionfunds,investmentcompanies,educationalandcharitableinstitutions,andotherinstitutions,butshallinallcasesbesubjecttoourapproval.Thesecontractswillbesubjectonlytothoseconditionssetforthinthe

7

TableofContents

applicableprospectussupplementandtheapplicableprospectussupplementwillsetforththecommissionpayableforsolicitationofthesecontracts.Theobligationsofanypurchaserunderanysuchcontractwillbesubjecttotheconditionthatthepurchaseofthesecuritiesshallnotbeprohibitedatthetimeofdeliveryunderthelawsofthejurisdictiontowhichthepurchaserissubject.Theunderwritersandotheragentswillnothaveanyresponsibilityinrespectofthevalidityorperformanceofthesecontracts.

Thesecuritiesmayormaynotbelistedonanationalsecuritiesexchangeortradedintheover-the-countermarket,assetforthintheapplicableprospectussupplement.Noassurancecanbegivenastotheliquidityofthetradingmarketforanyofoursecurities.Anyunderwritermaymakeamarketinthesesecurities.However,nounderwriterwillbeobligatedtodoso,andanyunderwritermaydiscontinueanymarketmakingatanytime,withoutpriornotice.

Ifunderwritersordealersareusedinthesale,untilthedistributionofthesecuritiesiscompleted,SECrulesmaylimittheabilityofanyunderwritersandsellinggroupmemberstobidforandpurchasethesecurities.Asanexceptiontotheserules,representativesofanyunderwritersarepermittedtoengageincertaintransactionsthatstabilizethepriceofthesecurities.Thesetransactionsmayconsistofbidsorpurchasesforthepurposeofpegging,fixingormaintainingthepriceofthesecurities.Iftheunderwriterscreateashortpositionintheapplicablesecuritiesinconnectionwithanyoffering(inotherwords,iftheysellmoresecuritiesthanaresetforthonthecoverpageoftheapplicableprospectussupplement)therepresentativesoftheunderwritersmayreducethatshortpositionbypurchasingsecuritiesintheopenmarket.Therepresentativesoftheunderwritersmayalsoelecttoreduceanyshortpositionbyexercisingallorpartofanyover-allotmentoptionwemaygranttotheunderwriters,asdescribedintheprospectussupplement.Therepresentativesoftheunderwritersmayalsoimposeapenaltybidoncertainunderwritersandsellinggroupmembers.Thismeansthatiftherepresentativespurchasesecuritiesintheopenmarkettoreducetheunderwriters'shortpositionortostabilizethepriceofthesecurities,theymayreclaimtheamountofthesellingconcessionfromtheunderwritersandsellinggroupmemberswhosoldthosesharesaspartoftheoffering.

Ingeneral,purchasesofasecurityforthepurposeofstabilizationortoreduceashortpositioncouldcausethepriceofthesecuritytobehigherthanitmightbeintheabsenceofthosepurchases.Theimpositionofapenaltybidmightalsohaveaneffectonthepriceofthesecuritiestotheextentthatitdiscouragesresalesofthesecurities.Thetransactionsdescribedabovemayhavetheeffectofcausingthepriceofthesecuritiestobehigherthanitwouldotherwisebe.Ifcommenced,therepresentativesoftheunderwritersmaydiscontinueanyofthetransactionsatanytime.Inaddition,therepresentativesofanyunderwritersmaydeterminenottoengageinthosetransactionsorthatthosetransactions,oncecommenced,maybediscontinuedwithoutnotice.

Certainoftheunderwritersoragentsandtheirassociatesmayengageintransactionswithandperformservicesforusorouraffiliatesintheordinarycourseoftheirrespectivebusinesses.

InnoeventwillthecommissionordiscountreceivedbyanyFinancialIndustryRegulatoryAuthority("FINRA")memberorindependentbroker-dealerparticipatinginadistributionofsecuritiesexceedeightpercentoftheaggregateprincipalamountoftheofferingofsecuritiesinwhichthatFINRAmemberorindependentbroker-dealerparticipates.

LEGAL MATTERS

Morrison&FoersterLLP,SanDiego,California,haspasseduponthevalidityofthesecuritiestobeofferedpursuanttothisprospectus.

8

TableofContents

EXPERTS

TheconsolidatedfinancialstatementsofNetlist,Inc.anditssubsidiariesincludedintheCompany'sAnnualReportonForm10-KfortheyearendedJanuary2,2016havebeenauditedbyKMJCorbin&CompanyLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportwhichisincorporatedbyreferenceherein,andhasbeensoincorporatedinrelianceuponsuchreportandupontheauthorityofsuchfirmasexpertsinaccountingandauditing.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

TheSECallowsusto"incorporatebyreference"theinformationwefilewiththem.Thismeansthatwecandiscloseimportantinformationtoyouinthisprospectusbyreferringyoutothosedocuments.Theseincorporateddocumentscontainimportantbusinessandfinancialinformationaboutusthatisnotincludedinordeliveredwiththisprospectus.Theinformationincorporatedbyreferenceisconsideredtobepartofthisprospectus,andlaterinformationfiledwiththeSECwillupdateandsupersedethisinformation.

WeincorporatebyreferencethedocumentslistedbelowaswellasanyfuturefilingsmadewiththeSECunderSections13(a),13(c),14or15(d)oftheExchangeActfromthedateoftheinitialregistrationstatementandpriortotheeffectivenessofthisregistrationstatement,andanyfilingsmadeafterthedateofthisprospectusuntilwesellallofthesecuritiesunderthisprospectus,exceptthatwedonotincorporateanydocumentorportionofadocumentthatis"furnished"totheSEC,butnotdeemed"filed."ThefollowingdocumentsfiledwiththeSECareincorporatedbyreferenceinthisprospectus:

• ourAnnualReportonForm10-KfortheyearendedJanuary2,2016(includinganyportionsofourDefinitiveProxyStatementonSchedule14AfiledonMay2,2016thatareincorporatedbyreferenceintosuchAnnualReportonForm10-K);

• ourQuarterlyReportsonForm10-QforthequartersendedApril2,2016andJuly2,2016;

• ourCurrentReportsonForm8-KfiledonJanuary13,2016,February1,2016,February10,2016,June9,2016andAugust2,2016;and

• thedescriptionofourcommonstockcontainedinourRegistrationStatementonForm8-AfiledwiththeSEConNovember27,2006,includinganyamendmentsorreportsfiledforthepurposeofupdatingsuchdescription.

Wewillprovidewithoutchargetoeachperson,includinganybeneficialowner,towhomaprospectusisdelivered,onwrittenororalrequestofthatperson,acopyofanyorallofthedocumentsweareincorporatingbyreferenceintothisprospectus,otherthanexhibitstothosedocumentsunlesssuchexhibitsarespecificallyincorporatedbyreferenceintothosedocuments.Suchwrittenrequestsshouldbeaddressedto:

Netlist,Inc.175TechnologyDrive,Suite150

Irvine,California92618Attention:GailM.Sasaki

YoumaydirecttelephonerequeststoGailM.Sasaki,ourChiefFinancialOfficer,at(949)435-0025.

WHERE YOU CAN FIND MORE INFORMATION

Wefileannual,quarterlyandcurrentreportsandproxystatementsandotherinformationwiththeSEC.YoumayreadandcopyanydocumentthatwefileattheSEC'sPublicReferenceRoomat100FStreet,N.E.,Washington,D.C.20549.PleasecalltheSECat1-800-SEC-0330forfurtherinformationonthePublicReferenceRoom.OurSECfilingsarealsoavailableontheSEC'swebsiteathttp://www.sec.gov.CopiesofcertaininformationfiledbyuswiththeSECarealsoavailableonourwebsiteathttp://www.netlist.com.Wehavenotincorporatedbyreferenceintothisprospectustheinformationonourwebsite,andyoushouldnotconsiderittobeapartofthisdocument.

9

TableofContents

$9,000,000

NETLIST, INC.Common Stock

PROSPECTUS SUPPLEMENT

B. Riley FBRThe date of this prospectus supplement is November 14, 2017