by Anton Shilov
11/21/2012 | 04:53 PM
OCZ Technology Group, a leading maker of solid-state drives, on Wednesday said that on November 15, 2012, it received a letter from the Securities and Exchange Commission (SEC) indicating that they are conducting an investigation. OCZ said that the investigation did not come unexpected.
As part of this notification, OCZ also received a subpoena requesting certain documents and information generally related to its press releases on September 5 and October 10, 2012, and the financial reporting for customer incentive programs, among other matters.
On September 5 the company announced that its revenue for the Q2 FY2013 would be lower than expected due to insufficient supply of NAND flash memory used to manufacture consumer-class Agility- and Vertex-series SSDs. Besides, the company released preliminary financial results on the same date and revealed that it expected revenue between $110 and $120 million, down from previously anticipated $130 - $140 million.
On October 10 the SSD maker said it would again delay publication of its financial report and further decreased its estimates, saying that revenue for Q3 FY2013 would be materially lower than $110 million.
“Since we delayed the filing of our second quarter 10-Q, we had proactively contacted the commission and have been expecting them to conduct an investigation. We intend to cooperate fully regarding this non-public, fact-finding inquiry and are also continuing with our own internal investigation as previously announced,” said Ralph Schmitt, president and chief executive officer.
The SEC has informed the company that this inquiry should not be construed as an indication that any violations of law have occurred or that the SEC has any negative opinion of any person, entity or security. OCZ is unable to predict what action, if any, might be taken in the future by the SEC as a result of the matters that are the subject of the subpoena.