OCZ Transitions Away from Coolers, Peripherals, Focuses on Core Businesses

OCZ Raises $15.45 Million to Advance SSD Business, Shuts Down All Non-Core Operations

by Anton Shilov
03/25/2010 | 10:41 PM

As OCZ Technology Goup is focusing on its core businesses – which are memory, solid-state drives (SSDs) and power supply units – the company will cease to introduce new  non-core products, including coolers, keyboards, mice, various gaming gear, systems and all the other products in order to spend all the resources onto the crucial parts of its operations.

 

“We are focusing on our key product categories. We have ceased sales and marketing of the Hypersonic brand […]. We have transitioned away from the coolers, systems and peripherals and allowing us to focus and direct resources to our core solutions which are SSDs, power supplies and memory,” said Alex Mei, executive vice president and chief marketing officer at OCZ Technology.

For years OCZ Technology Group had been trying to establish itself both as a premium supplier of computer memory as well as a provider of various hardware designed for gamers and enthusiasts. The company started to sell coolers, keyboards, mice and even created an exotic controller for games called Neural Impulse Actuator (NIA), which technology the company recently sold to BCInet company. However, OCZ never was very successful with such products. On the other hand, OCZ managed to establish itself as a supplier of high-performance own-brand solid-state drives in the beginning of the SSD era, which means that the company has bright prospects to eventually become a leading provider of advanced storage solutions. In order to direct all the available resources onto SSD business, the company decided to shut down all of its non-core businesses, including Hypersonic line of high-end PCs as well as OCZ’s DIY line of mobile computers.

Earlier this week OCZ Technology Group said it had closed $15.45 million in funding in order to support its growing solid state drive business. Through the transaction, OCZ sold 5,151,662 shares of its common stock (approximately $15.45 million in the aggregate) to several institutional investors. The transaction includes warrants to purchase an aggregate of an additional 2,575,831 shares of common stock. The warrants are immediately exercisable, have a term of five years and contain certain other features.

“Over the course of the last few years, we have met the demand for a better storage option head-on, by delivering high performance solid state disk drives to a wide array of customer’s globall. This round of funding will enable OCZ to continue its growth in SSDs and accelerate the development of next-generation solutions,” said Ryan Petersen, president and chief executive officer of OCZ Technology.

Thanks to the fact that OCZ was one of the first brands to enter SSD business several years ago, the company is now well-positioned to advance the deployment of flash-based storage solutions.

“OCZ will continue to design, develop and implement SSD technology with its current base of over 300 customers while opening up new markets through targeting enterprise and OEM customers seeking to adopt flash media as primary storage,” added Mr. Petersen.