Bookmark and Share



Solid-state drives developer OCZ Technology Group said Monday that the audit committee's investigation, assisted by third party legal and financial advisors, has been substantially completed and a preliminary report has been provided to the audit committee. The latter has approved this report and, in consultation with management, concluded that OCZ should restate the results for the Q1 of FY 2013, as well as the results for certain quarters of fiscal 2012 and for the FY2012.

The restatements primarily relate to the timing of revenue recognition, the classification of certain customer incentive costs and for the level of reserves for product returns. The number of prior periods affected and the impact of the adjustments will be disclosed in more detail in the company's restated financial statements, which will be provided as soon as practical. The board of directors and management are in discussions with Crowe Horwath LLP, the company's independent auditors regarding the matters identified in the investigation.

"We understand that restating prior periods is very disappointing and unacceptable to our shareholders. While this investigation process has taken longer than originally anticipated, it has helped the company to identify the relevant issues to enable the financial reporting to be finalized," stated Ralph Schmitt, CEO of OCZ Technology.

Until the restatements are released, in addition to the financial statements for the periods referenced above, related press releases and shareholder communications describing our financial statements and the report of Crowe Horwath LLP related to the financial statements as of and for the year ended February 29, 2012 should no longer be relied upon.

During the recent unreported quarters ended August and November 2012, the company has worked diligently to continue to support its customers. In addition, the OCZ's product development efforts are on track and it currently expects new product announcements to be made on schedule in the current quarter.

The collection of receivables and inventory levels have been more effectively managed resulting in improved cash flow and a reduction in the total amount drawn on the OCZ's credit facility with Wells Fargo Capital Finance. The company is also negotiating with Wells Fargo to amend the credit facility to reflect the impact of the current financial situation, as the company has been in default with the liquidity test and related financial covenants. OCZ has also submitted a letter to NASDAQ for its approval which described the plan and timing under which the company expected that it would bring its financial reporting current.

"We continue to successfully compete in the market and recently released our Vector product, widely reported as the industry's highest performing drive. The Company continues to execute well on its product and business plans," added Mr. Schmitt.

Tags: Business, OCZ, SSD, NAND, Flash


Comments currently: 3
Discussion started: 12/18/12 06:37:48 AM
Latest comment: 12/21/12 07:23:26 PM
Expand all threads | Collapse all threads


If the board of the company has no clue what the Hell is going on with the company financially or otherwise shouldn't they be dismissed?
0 0 [Posted by: beenthere  | Date: 12/18/12 06:37:48 AM]
- collapse thread

Well, instead of dismissing Board member, Ralph Schmitt... they made him CEO. I guess that's kind of the same thing. Isn't it?

We've been through the looking glass with OCZ for months. I cry myself to sleep every night -- thinking of how much stock I own.
0 0 [Posted by: poesis  | Date: 12/18/12 06:20:22 PM]

House of cards...............
0 0 [Posted by: alpha0ne  | Date: 12/21/12 07:23:26 PM]


Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month