Welcome!

@DXWorldExpo Authors: Liz McMillan, Elizabeth White, Zakia Bouachraoui, Pat Romanski, Maria C. Horton

News Feed Item

OCZ Technology Issues Update on Various Matters

SAN JOSE, CA--(Marketwire - January 22, 2013) -  OCZ Technology Group, Inc. (NASDAQ: OCZ), a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems, today announced that that the Audit Committee's investigation has been completed. As noted in the Company's December 17th press release, the Company is working with Crowe Horwath LLP, the independent auditors, regarding the restatements of the results for the first quarter of fiscal 2013, as well as the results for fiscal 2012. The restatements primarily relate to the timing and classification of customer incentive costs between revenue and operating expenses, the timing of revenue recognition for certain transactions, and the level of reserves for product returns. The restatement of prior periods will be provided as soon as practical.

In addition, because of the delayed filing with the SEC of the Form 10-Q for the period ending November 30, 2012 (the "Form 10-Q"), the Company, as anticipated, received a letter from The Nasdaq OMX Group ("Nasdaq") indicating that the Company is not in compliance with the filing requirements for continued listing under Nasdaq Listing Rule 5250(c). As previously announced, the Listing Qualifications Staff at Nasdaq, based on the Company's compliance plan, granted the Company an exception until February 28, 2013 to file its Form 10-Q for the period ended August 31, 2012.

This recent Nasdaq letter notes that the Company is required, by February 1, 2013, to submit an update to this original plan to regain compliance. Nasdaq is permitted to grant an extension of up to 180 days from the initial delinquent filing, or until April 8, 2013, for the Company to regain compliance.

As previously stated, the Company continues to work diligently to complete the financial audit and quarterly reviews along with any necessary restatements. While this will hopefully be completed in the near future, the exact date cannot currently be estimated.

On January 15, 2013 the Company amended its credit facility agreement with Wells Fargo Capital Finance to, among other things, reduce the maximum loan amount to $20 million from the prior $35 million. At December 31, 2012 the outstanding loan balance was approximately $7 million compared to approximately $15 million at November 30, 2012 and $20 million at August 31, 2012. This amendment specifies certain reporting requirements and liquidity minimums, but also provides the Company with an operating structure to support its business needs while the Company is in technical default of certain covenants. A summary of the material terms of the amendment will be filed today in a Form 8-K.

"The independent investigation has been completed and the findings were highly consistent with the Company's internally identified issues. The Company has already eliminated certain customer incentive programs and made people and process changes to improve overall business operations and continue moving the Company in a positive direction," stated Ralph Schmitt, CEO of OCZ Technology. "We continue to focus on making operational improvements and have significantly reduced our channel inventory to less than $50 million. This puts our sales channel in excellent position to properly support our customers while also efficiently managing our total inventory. The Company has successfully settled the two previously disclosed product and patent litigation contingencies, removing the potential for significant, unforeseen liabilities to the Company."

"The team continues to deliver on its product development efforts, and at this year's CES in Las Vegas, we unveiled and demonstrated the upcoming PCIe based Vector SSD as well as showcased a wide range of client and enterprise solid-state storage solutions," added Schmitt. "We are also pleased with the customer and industry reactions we are receiving for our latest SATA III-based Vector SSD Series, featuring the Company's next-generation Indilinx Barefoot 3 controller, and look forward to continue to provide our customers with innovative industry leading storage solutions."

About OCZ Technology Group, Inc.
Founded in 2002, San Jose, CA-based OCZ Technology Group, Inc. (OCZ) is a global leader in the design, manufacturing, and distribution of high-performance solid-state storage solutions and premium computer components. Offering a complete spectrum of solid-state drives (SSDs), OCZ provides SSDs in a variety of form factors and interfaces (i.e. PCIe, SAS and SATA) to address a wide range of client and enterprise applications. Having developed firmware and controller platforms, to virtualization and endurance extending technologies, the company delivers vertically integrated solutions enabling transformational approaches to how digital data is captured, stored, accessed, analyzed and leveraged by customers. For more information, please visit: www.ocztechnology.com.

Forward Looking Statements
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of OCZ Technology Group, Inc. to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "would," "expect," "anticipate," "should" or other similar words and phrases often identify forward-looking statements made on behalf of OCZ. It is important to note that actual results of OCZ may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, the risk that additional information may arise from the oversight of the audit committee; the risk that the process of preparing and auditing the financial statements or other subsequent events would require OCZ to make additional adjustments; the time and effort required to complete the restatement of the financial reports; the ramifications of OCZ's potential inability to timely file required reports; including potential delisting of OCZ's common stock on NASDAQ; the risk of litigation or governmental investigations or proceedings relating to such matters; the risk that OCZ may not be able to successful negotiate an amendment to its credit facility; market acceptance of OCZ's products and OCZ's ability to continually develop enhanced products; adverse changes both in the general macro-economic environment as well as in the industries OCZ serves, including computer manufacturing, traditional and online retailers, information storage, internet search and content providers and computer system integrators; OCZ's ability to efficiently manage material and inventory, including integrated circuit chip costs and freight costs; and OCZ's ability to generate cash from operations, secure external funding for its operations and manage its liquidity needs. Other general economic, business and financing conditions and factors are described in more detail in "Item 1A -- Risk Factors" in Part I in OCZ's Annual Report on Form 10-K filed with the SEC 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's website at www.ocztechnology.com. OCZ does not undertake to update its forward-looking statements.

All trademarks or brand names referred to herein are the property of their respective owners.

OCZ Press Contact:
Scott Harlin
Director of Marketing Communications - Enterprise
(408) 440-3484
[email protected]

OCZ Investor Relations Contact:
Bonnie Mott
Senior Manager of Investor Relations
(408) 440-3428
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

DXWorldEXPO Digital Transformation Stories
@CloudEXPO and @ExpoDX, two of the most influential technology events in the world, have hosted hundreds of sponsors and exhibitors since our launch 10 years ago. @CloudEXPO and @ExpoDX New York and Silicon Valley provide a full year of face-to-face marketing opportunities for your company. Each sponsorship and exhibit package comes with pre and post-show marketing programs. By sponsoring and exhibiting in New York and Silicon Valley, you reach a full complement of decision makers and buyers in ...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
LogRocket helps product teams develop better experiences for users by recording videos of user sessions with logs and network data. It identifies UX problems and reveals the root cause of every bug. LogRocket presents impactful errors on a website, and how to reproduce it. With LogRocket, users can replay problems.
Data Theorem is a leading provider of modern application security. Its core mission is to analyze and secure any modern application anytime, anywhere. The Data Theorem Analyzer Engine continuously scans APIs and mobile applications in search of security flaws and data privacy gaps. Data Theorem products help organizations build safer applications that maximize data security and brand protection. The company has detected more than 300 million application eavesdropping incidents and currently secu...