OCZ posts financial results – has difficulties to get NAND supplies

OCZ has finally posted their financial results. The company had to publish their results over previous quarters to remain listed on the NASDAQ. Due bad financial management caused by the former CEO, the company had trouble to meet the requirements before. The results of the previous quarters aren’t exactly positive but the last quarter show the company is working hard to get their results right again. The new CEO of the company, Ralph Schmitt, is trying to clean up the mess.

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OCZ seems to be doing well on the enterprise side, but has difficulties on the consumer markets due to issues with NAND supplies. Clearing the inventories impacted margins but the company hopes that it will benefit from that on the long term.

“Revenue generated from our enterprise solutions for the first quarter more than doubled compared to the last quarter, and drove the sequential gross margin increase. Overall revenue declined about 20% sequentially, primarily due to the lack of NAND flash supply for our client SSD products,” said Schmitt.

He continued with, “Throughout our Fiscal Year of 2013, we focused our attention on making changes that would allow us to run a more streamlined and efficient Company. While our peak revenue was close to $100 million in the third fiscal quarter, our business had negative gross margins due to the mismatch in competitive pricing and our cost structure for the client value product lines.”

He went on to say, “In the fiscal third and fourth quarters, we also made significant adjustments to inventories held both inside the Company and in the channel. We rebalanced the inventory to focus on high growth and more attractive markets including the Enterprise SATA, SAS and PCIe markets. These actions impacted margins as revenues also declined due to rationalizing the product portfolio,” added Schmitt. “All of these operational adjustments are now behind us.”

Due to ongoing reports on OCZ’s financial situation the company also had more trouble to get their flash memory supplies, as Schmitt explains, We believe that flash availability and pricing was impacted by our credit situation due to our restatement efforts. This especially came to light in the second quarter”.

The company states that for the next quarter it sees increasing demand for its products but that due to its financial situation has a hard time securing supplies.