OCZ Technology Provides Estimated Financial Information
OCZ Technology today provided additional estimated financial information in an effort to further communicate with key constituents of the company.
OCZ estimates that its quarterly revenue will range between $65 million to $85 million in each quarter for the second and third fiscal quarters of 2013. In order to provide these figures, the company said it took int o effect the impacts of the reclassification of certain customer costs from operating expenses to revenue, the reduction of its channel inventory, the timing of revenue recognition, and the levels of reserves for product returns.
OCZ is trying to streamline its business by reducing its workforce and discontinue product variations, including approximately 80% of its lower-end value products. The company estimates that inventory charges primarily due to product discontinuance and market prices will be approximately $15 million in the second fiscal quarter and approximately $30 million in the third fiscal quarter. As of the end of December, certain balance sheet items were estimated to be at the following approximate levels: cash of $9 million, trade receivables of $35 million, with related day sales outstanding of 55, bank debt of $7 million, and trade payables of $30 million.
"We feel that it is appropriate to release information to our valued investors, customers and suppliers in order to not only build credibility but to be as transparent as possible during this period of limited public information. We continue to improve the operating aspects of the company and are making progress on releasing the restated financial statements. The revenue levels of our two unreported quarters were lower than previous revenue results due to significant discounting and the reduction of channel inventory in Q3. Both of these effects are now mostly behind us and moving forward there will be a new revenue baseline which will be lower than previous reported revenues due to the impact of the Company's refined focus towards the mainstream and higher-end consumer SSD products, as well as addressing enterprise and OEM solid state storage solutions. We believe that this strategy will allow us to build a profitable business within Fiscal 2014, which starts at the end of February, and should allow the Company to grow between 20-30% on a year over year basis," stated Ralph Schmitt, CEO of OCZ Technology.
Todays's announcement follows OCZ's previous update on its financial situation.
OCZ is trying to streamline its business by reducing its workforce and discontinue product variations, including approximately 80% of its lower-end value products. The company estimates that inventory charges primarily due to product discontinuance and market prices will be approximately $15 million in the second fiscal quarter and approximately $30 million in the third fiscal quarter. As of the end of December, certain balance sheet items were estimated to be at the following approximate levels: cash of $9 million, trade receivables of $35 million, with related day sales outstanding of 55, bank debt of $7 million, and trade payables of $30 million.
"We feel that it is appropriate to release information to our valued investors, customers and suppliers in order to not only build credibility but to be as transparent as possible during this period of limited public information. We continue to improve the operating aspects of the company and are making progress on releasing the restated financial statements. The revenue levels of our two unreported quarters were lower than previous revenue results due to significant discounting and the reduction of channel inventory in Q3. Both of these effects are now mostly behind us and moving forward there will be a new revenue baseline which will be lower than previous reported revenues due to the impact of the Company's refined focus towards the mainstream and higher-end consumer SSD products, as well as addressing enterprise and OEM solid state storage solutions. We believe that this strategy will allow us to build a profitable business within Fiscal 2014, which starts at the end of February, and should allow the Company to grow between 20-30% on a year over year basis," stated Ralph Schmitt, CEO of OCZ Technology.
Todays's announcement follows OCZ's previous update on its financial situation.
