Ocz Technology Share Discussion Threads

[whine] 10/10/2012 16:35

OCZ is the best short in the market

[mark knopfler] 10/10/2012 15:55

company still valued at 128mln $ ?

[ch131] 10/10/2012 15:54

Exactly, it's a question of how quickly they can turn this around. If they can't do it by next quarter they're going to be in serious trouble. With the heat on in this market and companies like Samsung to contend with, they need to get this sorted ASAP and concentrate on what they are good at or else they risk the possibility of being outclassed very quickly.

I think Schmitt was forced into a difficult situation on his first day, the cc was probably a mistake as it sounds like nothing concrete was said, he obviously doen't want to appear like another RP. I hope he'll be more confident when the figures come out.

[legolass] 10/10/2012 15:37

Wasn't impressed. Schmidt said the right things up front but stuttered through the questions. Why did he not let Art answer any? Possibly he wasn't even there!? Bottom line they have drawn down on the debt facility and I dont think they can turn this around quick enough to avoid burning casg again this qtr. Am not going to sell what I have left but would need to be below a $ to think about buying

[ch131] 10/10/2012 15:33

Oh and BF3 and Vector on target to be released this Q

[ch131] 10/10/2012 15:29

It was on- I caught the last half of the cc- basically Schmitt admitting that there had been some serious errors of execution, and that he would streamline the co. (there always were too many products), make change to processes blah, blah. It remains to be seen whether he can. I don't know if cash was talked about. Volume is massive- I think shorts would be exiting here. Buying a few on IGindex spreadbet to hold for a rainy day.

[mark knopfler] 10/10/2012 15:20

Blow out volume already; often indicates a bottom.

One for the brave though, and thats not me.

[ch131] 10/10/2012 14:26

Ok it's just been changed on the webcast link- it was saying 5pm earlier- now changed to 7am pacific, 3pm uk time

[mark knopfler] 10/10/2012 14:23

Very little notice given for the cc. I expect the new CEO will deflect a lot of the questions, claiming lack of knowledge, after the opening statement.

[ch131] 10/10/2012 14:21

Looking on the positive side, at least if I were short, I'd be looking to cover now.

[legolass] 10/10/2012 14:20

3pm our time?

OCZ will host a conference call today at 7:00am PT (10:00am ET). A live audio webcast of the conference call will be available by visiting the Investor Relations events conference call section of OCZ's website at which will be archived for replay until October 17, 2012. All interested parties can join the call by dialing [phone] or [phone]. Please call-in 15 minutes prior to the call to secure a line. To access the archived conference call, please dial [phone] or [phone] and enter replay passcode 40293925.

[legolass] 10/10/2012 14:19

The silver lining is that Schmidt is joining - nobody would leave a job and join as CEO unless he thought he could salvage some equity value. We know the products are good. It was just RP was selling them for less than cost! The big question is cash and if they can draw down the debt. I dont agree yet it is priced to go bankrupt...that would be at well under 1$ a share in my view which is where we might end up if the CC mentions liquidity needs

[ch131] 10/10/2012 14:19

FailedQS, yep- I think we're all feeling pretty stupid now... Lego- I think its later- on the cc ling it says 5pm pacific time not 7am?

[legolass] 10/10/2012 14:16

Almost certainly this has been going on multi-quarters and explains why cash was always so poor. My willingness to trust RP (although I knew he was a bit mad) came from the fact that he carried all his UK investors with him when he delisted from AIM - he could have bought it back for $20m then. The rebate stuff was always murky. It looks like he got too carried away by growth. The news today that he has been given options and sits on a new advisory Board looks even stranger in the context of all this. Conf call 3pm UK time if anyone missed that.

[failedqs] 10/10/2012 14:15

What a disaster. The shorters knew all right!
Another Michael Walters tip that turns out to be a crock - well done Michael!....
I doubt there is anything to salvage here, they will have to beg for a bail-out takeover from someone, someone with deep pockets and an appetite for surprises.
HArd to believe we were all thinking a $16 a share bid was just around the corner a couple of months ago!!

[ch131] 10/10/2012 14:14

Cash must be a problem, after negative margins last quarter, but I can't help thinking that Schmitt wouldn't have left PLX if he didn't think it was salvageable. Right now it's priced for bankruptcy- a buying opportunity for the brave! Surely things can only get better from here.

[mark knopfler] 10/10/2012 14:06

pre market volume is already 3mm.

[mark knopfler] 10/10/2012 14:02

I hope you're right, for old times sake, but OCZ have seemingly been buying business for quite a while. Sooner or later, you need to make a profit to keep it going.

[ch131] 10/10/2012 13:58

You're right there. Lesson learned- never bet against a high short float- they knew something, and my guess is it goes back a long way.

It's still a viable takeover once the accounts are out, and everything is transparent, but right now definitely not!

[mark knopfler] 10/10/2012 13:49

$1.72 now.

Its fair to assume he'll get all the bad news out straight away, and hopefully there'll be a viable business left at the end of it.

Those shorts weren't stupid after all.

[ch131] 10/10/2012 13:49

So RP mislead investors about revenue by not disclosing the customer incentive programs (I assume they mean the rebate scheme by this). What a mess. At least the new CEO knows what he's getting into- Oh well, it's another stock for the bottom drawer now...

[legolass] 10/10/2012 13:38

Looks essentially like fraud. The only silver lining is Schmidt has left a job to become CEO of OCZ so he must presumably see something. Stock $2 early pre mkt

[mark knopfler] 10/10/2012 13:25

The new CEO needs to be a magician:

OCZ Technology Announces Filing Extension for Form 10-Q and Revised Revenue Estimate for the Second Fiscal Quarter 2013
Conference Call Today at 7:00am Pacific Time; Previously Scheduled Earnings Call Postponed

SAN JOSE, CA -- (MARKETWIRE) -- 10/10/12 -- OCZ Technology Group, Inc. (NASDAQ: OCZ), a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems, today announced that it will file a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission that allows the Company to extend the deadline to file its Form 10-Q for the second quarter of fiscal year 2013 (Q2'13), which ended on August 31, 2012. With this extension, if the Form 10-Q is filed by October 15, 2012, the Form 10-Q will be deemed to be timely filed.

The Company's financial statements are still under review. The Q2'13 revenue will be materially lower than the September 5th preliminary revenue range of $110 to $120 million. This new revenue estimate and filing delay is principally due to the impact of customer incentive programs which were discovered subsequent to the preliminary announcement during the normal close process, and which the Company will be reporting as a material weakness in its Form 10-Q. The Company also expects to report negative gross margins and a significant net loss for Q2'13 and will hold a conference call today at 7:00am Pacific Time (10:00am Eastern Time).

The financial information for Q2'13 presented in this press release is preliminary and remains subject to management's review of the results and also review by the Company's independent accounting firm. The Company will now host its Q2'13 earnings call in conjunction with the filing of its Form 10-Q and has postponed the previously scheduled conference call.