OCZ Taps More NAND Suppliers, Seeks For Cash
OCZ Technology Group is back on track as it has managed to source NAND memory from multiple vendors after a recent supply shortage.
The SSD maker had faced NAND supply issues, since it has been reliant on a single supplier. This forced the company to issue a warning last September that it expected second-quarter revenue to be below its prior forecast.
Speaking to Reuters, OCZ CEO Ralph Schmitt said that the company is currently not facing supply issues, as it has diversified to multiple suppliers.
However, the company is still expecting a "significant" loss in its second quarter due to issues in its customer incentive programs, and also delayed filing the results.
Last week, OCZ was informed that it was being investigated by the Securities and Exchange Commission because of the delayed results.
Schmitt said that OCZ has been in talks with "interested parties" in order to secure investments and additional capital flow.
He did not confirm earlier rumors that rival Seagate Technology Plc and Micron Technology had made takeover offers for OCZ, adding that a possible sale of the company is not an option, at least for now.
Obviously, OCZ cannot make significant profit out of its SSD products as its main competitors - Micron Technology, Intel and Samsung electronics - are all makers of NAND chips.
OCZ has already outined a cash-saving plan, in which the company will scrap about 150 mostly lower-end products. OCZ will also slash its workforce by about 28 percent.
OCZ's future plan will be based on profitability and not topline growth alone, Schmitt said.
"I'll say that we've got the train back on the track," Schmitt said, referring to an analyst's description of the company as a "train wreck."
Speaking to Reuters, OCZ CEO Ralph Schmitt said that the company is currently not facing supply issues, as it has diversified to multiple suppliers.
However, the company is still expecting a "significant" loss in its second quarter due to issues in its customer incentive programs, and also delayed filing the results.
Last week, OCZ was informed that it was being investigated by the Securities and Exchange Commission because of the delayed results.
Schmitt said that OCZ has been in talks with "interested parties" in order to secure investments and additional capital flow.
He did not confirm earlier rumors that rival Seagate Technology Plc and Micron Technology had made takeover offers for OCZ, adding that a possible sale of the company is not an option, at least for now.
Obviously, OCZ cannot make significant profit out of its SSD products as its main competitors - Micron Technology, Intel and Samsung electronics - are all makers of NAND chips.
OCZ has already outined a cash-saving plan, in which the company will scrap about 150 mostly lower-end products. OCZ will also slash its workforce by about 28 percent.
OCZ's future plan will be based on profitability and not topline growth alone, Schmitt said.
"I'll say that we've got the train back on the track," Schmitt said, referring to an analyst's description of the company as a "train wreck."