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-   -   OCZ Going Bankrupt (http://www.hardwarecanucks.com/forum/storage/57238-ocz-going-bankrupt.html)

geokilla October 12, 2012 10:52 PM

OCZ Going Bankrupt
 
Bankruptcy Watch: OCZ Technologies (NYSE: OCZ) Can't Afford Any More Losses | StreetAuthority

Quote:

OCZ Technologies (NYSE: OCZ), for example, is surely a loser. As I noted a month ago, "OCZ continues to generate negative free cash flow (a cumulative $125 million over the prior two fiscal years). And with further free cash flow losses in the current fiscal year, the company's balance sheet could soon start to feel the strain." Well, the news is even worse than I thought, as this technology laggard may soon see its stock lose some or all of its value.
OCZ sees 'significant' loss, shares fall 43% - MarketWatch

Quote:

NEW YORK (MarketWatch) -- OCZ Technology Group OCZ -20.97% fell 42% in premarket trades on Wednesday after the San Jose, Calif., company said it notified the Securities and Exchange Commission to extend its filing deadline for its second quarter, which ended Aug. 31, because its financial statements are under review. The maker of computer components said it will report negative gross margins and a "significant" net loss for the second quarter. OCZ also named board member Ralph Schmitt as chief executive officer and president.
Guess we now know why so many people hate OCZ.... I better get my $15 mail in rebate! I'm not going to buy OCZ again. Well not anytime soon anyways. Wish I found out about this earlier... and submitted my MIR earlier...

Perineum October 13, 2012 12:20 AM

I don't believe the MIR goes through OCZ anyway.

I hope they make it though, doesn't make sense to lose another player. We don't need any steps closer to more monopolies.

ilya October 13, 2012 03:04 AM

I honestly wouldn't be surprised given their business model. (all bleeding edge and often getting burned for it) The previous attempts to trim corporate fat were pretty obvious as well, there's no reason to abandon your original core business(es) if you're doing as well as you say you are.

I honestly have a hard time believing the SSD market (outside of Samsung/Intel and corporate offerings) are big enough to house the kind of competition OCZ's facing. SSD's are the future, but big corporations are STILL running RDRAM.

sswilson October 13, 2012 03:44 AM

Quote:

Originally Posted by Generic User #2 (Post 661836)
how does a company perform so poorly when it has so many design wins? are the M4 and the 830 just outselling sandforce drives by THAT much?

That's what happens when you damage your brand.

OCZ produced some kickass memory in the early days (one of very few manufacturers who took the trouble to bin higher performing sticks), and believe it or not, some of their early PSUs were highly rated.

There PSU quality went for a crap, and then they dropped the memory line all together. Throw in the fact that every one of their products seems to come with a MIR and IMO you're looking at a company who's core products quite frankly aren't all that attractive.

And yeah... I doubt the SSD market is big enough to be their sole income generator.

Apathetik October 13, 2012 09:08 AM

But I like my OCZ DDR2 memory! ;)

chrisk October 13, 2012 10:00 AM

Yep I was warned about OCZ's long-term ability to backup the warranty of my last SSD purchase a few weeks ago (was really close to getting the Vertex 4). The fact that they ousted the CEO gave those warnings some credibility in my books so I stayed away.

As forums like ours start to doubt the ability for companies to back up warranties, it creates a snowball effect. After taking stock of the SSD landscape this month for my big upgrade, I could not feel totally comfortable suggesting OCZ even though the Vertex 4 drives seem like capable drives.

1V4N October 13, 2012 10:00 AM

Problem with OCZ was their poor management going all the way up to the top. They did everything they could to become #1, (which they did with originally with their RAM, then PSU and eventually SSD) -- profits be damned.

Overly ambitious acquisitions such as PC Power & Cooling (gone to hell now), Hypersonic PC system builder (gone to hell), then Indilinx which all burned millions from their coffers with little to nothing to show for it.

Failed attempts at CPU cooling, Graphics cards, Gaming Peripherals were also part of the OCZ fail-blazings, as well as the highly trumpeted and eventual vapour-ware products...

Those in the industry knew they were constantly bleeding money, and all joked they would be belly up soon and now the end appears near.

One of the ways OCZ eventually were able to become segment leader was to blow out SSD in a ponzy-type scheme, where they would sell their SSD in large quantities to their reseller/distribution partners and promise to "make-up" the discounts afterwards, thus the crazy continuous MIR which became the norm.

Sell alot first, then payback in "back-end" rebates/credits later. Unfortunately they now reached a point where they don't have enough funds to pay back what they promised to every company they owe and the sales of their products have slowed down due to the lack of those crazy MIR's that they now longer give out.

I'm not sorry to see them go, its about time...and yes there are alot of choices out there still, such as Intel, Samsung, Corsair, ADATA just to name a few.

I currently own 2x 120GB Vertex 3 SSD drives, however I also own several Corsair Force 3 (120GB + 240GB) and recently Intel 520 180GB SSD just in case anyone thought I had a hate on for OCZ :)

KylSp October 13, 2012 10:42 AM

Quote:

Originally Posted by Generic User #2 (Post 661836)
how does a company perform so poorly when it has so many design wins? are the M4 and the 830 just outselling sandforce drives by THAT much?

One word - reputation.

KaptCrunch October 13, 2012 10:56 AM

going like blackberry live off the patents

Bond007 October 13, 2012 01:15 PM

It's too bad they are falling apart. Hopefully they will pull it together


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