OCZ Technology Issues Status Update on Current Business Operation
SAN JOSE, CA, Oct 31, 2012 (Menafn - MARKETWIRE via COMTEX) --OCZ Technology Group, Inc. OCZ, a leading provider ofhigh-performance solid-state drives (SSDs) for computing devices andsystems, today issues this update to better inform its customers,investors, partners, and stakeholders about the status of its currentbusiness operation.
"We are undergoing a transition phase in the Company's evolution inwhich we are refocusing our efforts on products and strategies thatwill benefit both OCZ and our stakeholders over the long term," saidRalph Schmitt, CEO of OCZ Technology. "We have already takenaggressive steps to address some short-term tactical challenges andhave begun streamlining the organization to help ensure that OCZ willbe in the best position moving forward to address the fast growingconsumer and enterprise SSD markets."
As part of the Company's transformation, it has taken initial stepsto make its business more efficient and profitable by initiating theEOL procedures to discontinue approximately 150 product variations,including reducing the value category by approximately 80 percent.This streamlines OCZ's product offerings to address the mainstreamand higher-end consumer products, as well as enterprise and OEMsolutions. The Company has also evaluated its inventory and is in theprocess of making the necessary adjustments, including monetizingsome inventory to better align its product offerings and to free-upcash for the business. Excluding production personnel, the Companyhas reduced its global workforce by approximately 28 percent. Totalpersonnel at the Taiwan production facility, including outsidecontractors, has been reduced by approximately 32 percent. Thisfacility continues to increase overall efficiency and productionlevels. The Company will continue to take further actions aimed atreducing overall costs and improving operating results.
OCZ is working diligently and is making progress with regards to itson-going investigation meant to aid in the filing of its secondfiscal quarter Form 10-Q. Closure on these items has taken longerthan originally expected. Further details will be released when theForm 10-Q is filed.
Our business operations continue as usual. The company is deliveringinnovative solid state drive products to both the client andenterprise markets. OCZ continues to significantly invest in R&D todrive differentiated solutions with our unique controllers, firmwareand enterprise software; while staying focused on profitablyproviding high quality SSD solutions and supporting our customers'needs.
About OCZ Technology Group, Inc. Founded in 2002, San Jose, CA-basedOCZ Technology Group, Inc. (OCZ) is a global leader in the design,manufacturing, and distribution of high-performance solid-statestorage solutions and premium computer components. Offering highperformance solid-state drives (SSDs), OCZ provides SSDs in a varietyof form factors and interfaces (i.e. PCIe, SAS and SATA) to addressboth client and enterprise applications. Having developed firmwareand controller platforms, to virtualization and endurance extendingtechnologies, the company delivers vertically integrated solutionsenabling transformational approaches to how digital data is captured,stored, accessed, analyzed and leveraged by customers. For moreinformation, please visit: www.ocztechnology.com.
Forward Looking Statements Certain statements in this releaseregarding the Company's business transition are forward-looking, andthe actual results or timing of that transition could vary from ourcurrent expectations, depending on a variety of factors anduncertainties, including, but not limited to, realizing theanticipated benefits from OCZ's streamlining and efficiencyinitiatives; improving operational and cost efficiencies goingforward; market acceptance of OCZ's products and OCZ's ability tocontinually develop enhanced products. For further information onother risks and uncertainties, please refer to "Item 1A -- RiskFactors" in Part I in OCZ's Annual Report on Form 10-K filed with theSEC on May 14, 2012, and statements made in other subsequent filings.The filing is available both at www.sec.gov as well as via OCZ'swebsite at www.ocztechnology.com. OCZ does not undertake to updateits forward-looking statements.
All trademarks or brand names referred to herein are the property oftheir respective owners.
OCZ Press Contact:
Director of Marketing Communications - Enterprise
OCZ Investor Relations Contact:
Senior Manager of Investor Relations
SOURCE: OCZ Technology Group, Inc.
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