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Wednesday, January 12, 2011
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OCZ Technology Discontinues Memory Module Business
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OCZ technology has officially announced that it would discontinue its
DRAM module products by the end of February 28.
The announcement follows the company's move to discontinue certain
unprofitable commodity memory module products last August, with the
intent to continue only with certain high-performance memory
products. However, since that time, there has been continued weakness
in the global DRAM markets. As a result, the company will withdraw
from memory module market completely.
"Having balanced this DRAM market weakness against the capital needs
of the Company's growing SSD products, the board has determined that
it is in the best interests of the stockholders to accelerate plans
to discontinue its remaining DRAM module products by the end of its
current fiscal year of February 28, 2011. Accordingly, our DRAM
products are now expected to have minimal, if any, sales in the next
fiscal year and beyond," OCZ said in a statement.
Revenue generated from OCZ's Solid State Drive products for the third
fiscal quarter more than doubled on a sequential basis, according to
Ryan Petersen, Chief Executive Officer of OCZ Technology. "SSD
revenue accounted for 78% of our revenue and just by itself exceeds
our historical quarterly revenue totals across all categories, thus
reinforcing our decision to discontinue our remaining DRAM products."
Mr. Petersen concluded, "We have focused on building the OEM and
enterprise segments of our business, and last month we announced a
mass production order from a Tier 1 OEM for our enterprise class
SSDs, reflecting the reliability, speed and total cost of ownership
solid state drives provide over traditional mechanical hard drives.
We believe the market opportunity for SSDs is significant, and to
that end, we will continue to invest in research and development to
extend our leadership position. We also plan to increase our sales
and marketing efforts in order to facilitate continued revenue growth
and increased market share as SSDs gain adoption in all segments."
The company plans to focus on Solid State Drive products as well as
on building the OEM and enterprise segments of its business. The
company will also continue to ship products for enthusiasts, such as
flash media or PSUs.
OCZ will continue to fully support its memory modules and will even
launch a number of new memory modules that have been in the
short-term plans, such as the Fatal1ty launch alongside partners for
the new Fatal1ty branded Sandy Bridge motherboard platform from
Asrock and some XMP parts with Intel. |
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