OCZ Technology Group, a leading supplier of solid-state drives (SSDs), said this week that during its Q1 FY2012 (ended on May 31, 2011) its revenues increased by 115% year-over-year, whereas sales of SSDs soared by whopping 418% as enterprises are now aggressively purchasing solid-state drives. The company on-track to further expand its manufacturing capacities this summer.
OCZ's net revenues in Q1 FY2012 were a record $73.8 million, an increase of 115% compared with net revenues of $34.3 million reported in Q1 FY2011, and increase of 14% compared with the $64.6 million reported in Q4 FY2011. OCZ reported GAAP net loss for Q1 FY2012 at $9.1 million or $0.20 loss per share compared to a GAAP net loss of $4.8 million or $0.19 loss per share in Q1 FY2011. Non-GAAP net income for Q1 FY2012 was $0.5 million, or $0.01 per share as compared to a non-GAAP net loss for Q1 FY2011 of $2.7 million, or $0.11 loss per share.
The company's SSD revenues reached a record $69.1 million, an increase of 418% compared with Q1 FY2011 ($13.3 million), and a 19% increase compared with Q4 FY 2011 SSD revenues of $58.2 million and represented 94% of total revenue compared to 39% in first quarter of 2011. According to OCZ, the major growth market for SSDs are enterprise-class products, whereas consumers are still reluctant to get NAND flash-based storage devices.
"Within SSDs, consumer grade products decreased to 3% of revenues from 7% in Q4, reflecting less emphasis in this area. Enterprise class products in Q1 grew by about 250% from last year and accounted for nearly 12% of our SSD revenue (note: 50% of enterprise segment are PCIe-based SSDs - X-bit labs). Server and high-performance products were approximately 85% of the Q1 SSD sales and had a year to year growth rate of nearly 490%," said Arthur Knapp, chief financial officer of OCZ, during a conference call with financial analysts.
Keeping extreme growth of its solid-state product lineup in mind, OCZ in early May, 2011, promised to double its manufacturing capacities by adding new SMT (surface mount technology) lines to its facility in Taiwan within 90 days. The company seems to be on-track with that and expects new capacities to influence its results in the second half of the fiscal year. At present OCZ can produce 140 thousand SSDs per month, with new surface mount lines that number may double.
"We recently discussed our plans to increase manufacturing capacity and I am happy to report that we are on track to bring our new facilities online, which will increase our ability to fulfill demand for our products and better meet the needs of our OEM clients in the second half of fiscal FY2012. [...] We have increased our R&D work resources significantly and continued to add key individuals to directly target enterprise data center and OEM clients," said Ryan Petersen, chief executive officer of OCZ.
OCZ expects revenue for fiscal year 2012, to be in the range of $310−$345 million, an increase of approximately 65%−80% compared with $190 million reported in fiscal year 2011. OCZ plans to continue to invest in its R&D, sales, and marketing efforts to execute on its growth initiatives in the enterprise and server markets.