OCZ appoints new CEO, warns of revenue shortfall

OCZ appoints new CEO, warns of revenue shortfall

A massive revenue shortfall has hit OCZ Technology, but the company has appointed a new president and chief executive to get it back on track.

OCZ Technology has warned investors that its revenue for the quarter is going to be significantly below expectations, but hopes for leniency with the appointment of a new president and chief executive.

Back in September OCZ's president and chief executive Ryan Petersen stepped down for reasons unstated, replaced in the interim by chief marketing officer Alex Mei. Petersen's sudden departure from the company he founded may have been provided with some context by today's statement from the company: second-quarter revenue at the company is down to $78.5 million, compared to an originally forecast $110 million.

That's a serious shortfall, and one for which OCZ is pinning the blame squarely on incentive programmes, including price reductions and cashback schemes, introduced on Petersen's watch.

To be fair to Petersen, OCZ has also admitted that shortages of key components for solid-state storage devices - the company's bread-and-butter since it abandoned the DRAM market entirely - had led to decreased shipments, hurting the revenue stream still further.

With such a major hole in the company's finances, however, investors are clamouring for the company to do something - and something it has done, appointing Ralph Schmitt as the new president and chef executive officer of OCZ. If the name seems familiar, you may be remembering OCZ's purchase of system-on-chip specialist PLX's UK design team back in October last year: prior to his appointment as president of OCZ, Schmitt was PLX's chief executive officer.

With investors looking for OCZ to up its game in an increasingly crowded solid-state storage market, it remains to be seen whether giving up on DRAM was a trifle premature.


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[USRF]Obiwan 11th October 2012, 13:44 Quote
Well their gold plated memory modules sucked and causes a lot of problems with different systems, blue screens and the like. Their SSDsucks with their enormous fail rate and crashes . So no wonder it fails short.
Anfield 11th October 2012, 17:13 Quote
well, the way ddr3 prices are going we'll soon find it in cereal boxes, can't be too much profit in it anymore, so I can understand why they focused on other things.
SMIFFYDUDE 11th October 2012, 17:37 Quote
I bought my ddr3 ram when the price was sky high two years ago. I could probably get enough for 5 or 6 PCs now with the money I spent back then.
MrGumby 11th October 2012, 21:44 Quote
Always goes in cycles. Wonder what premium ddr4 will have when its released. I also wonder if the reduction in prices mean that production costs have fallen sharply, tho i suspect its an over supply issue.
dolphie 12th October 2012, 03:05 Quote
Schmitt steps into Petersen's shoes.

Were you tempted to type it as Schmitt schteps in to Petersch'sch schoesch?
Gareth Halfacree 12th October 2012, 09:32 Quote
Originally Posted by dolphie
Were you tempted to type it as Schmitt schteps in to Petersch'sch schoesch?
Drinking at work? Never! (Mostly.)

I'm doing my bit, anyway. My newbuild has an OCZ Solid3 120GB. I'm sure the couple of quid profit they make on that will boost revenue for the next quarter...
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