Breaking Finance News

OCZ Technology Preannounces Dissapointing Earnings

In a press release Monday, OCZ Technology (NASDAQ: OCZ) preannounced earnings data points that are sure to disappoint investors.

The company announced preliminary results from its fiscal first quarter that included revenue estimates of $50 to $55 million–much lower than the $74.15 million estimate.

The company said, “The sequential decrease in revenue was primarily due to the continued tight supply of NAND flash.”

Gross margin improved and is estimated to be between 17 percent and 20 percent as enterprise-solution revenue increased and reduced non-critical spending. OCZ Technology expects operating expenses to be between $20 million and $22 million which includes restatement related expenses of approximately $1.5 million and stock compensation charges of approximately $2 million.

It expects to have cash reserves of $6 million to $7 million with total outstanding debt of $10 million while likely requiring access to additional capital. Inventory levels were down to $35 million to $40 million and channel inventory will be around $20 million.

“The results for our first quarter of fiscal 2014 reflects the Company’s strategy to focus on strategic market opportunities where we add value and offer differentiated solutions for our customers,” stated Ralph Schmitt, CEO of OCZ Technology, “We had record enterprise sales during the quarter which were greater than $25 million of our overall sales. We continue to build our pipeline of opportunities in this focus market. We also introduced our first appliance based product called ZD-XL. This total solution takes advantage of all the Company’s hardware and software IP and offers an innovative and easy to deploy system solution to our customers.”

[stock-tools exchange="NASDAQ" symbol="OCZ" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the above mentioned equities.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.