SEC To Inverstigate OCZ's Financial Reports
OCZ Technolgy has been notified by the U.S. Securities
and Exchange Commission (SEC) regarding an
inverstigation possible securities law violations
involving the SSD maker.
OCZ on on November 15, 2012 received a letter from the
SEC indicating that they are conducting an
investigation. As part of this notification, the
Company also received a subpoena requesting certain
documents and information generally related to its
press releases on September 5, 2012 and October 10,
2012, and the financial reporting for customer
incentive programs, among other matters.
October 10, 2012, OCZ issued a press release announcing that it was delaying the filing of its financial results for the second quarter of fiscal year 2013, which ended August 31, 2012. The press release also disclosed that OCZ's second quarter revenue will be "materially lower" than its previous guidance released on September 5, 2012, which was in the range of $110 to $120 million, "principally due to the impact of customer incentive programs," and that OCZ expects to report a "significant net loss." Shortly after the release of this news, shares of OCZ dropped nearly 42 percent from a close of $3.15 on October 9, 2012 to close at $1.88 per share on October 10, 2012.
SEC's inverstigation possibly seeks to determine, among other things, whether OCZ or its officers and directors have violated the Securities Exchange Act of 1934 or any other federal securities laws.
"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," said Ralph Schmitt, OCZ president and chief executive officer. "We intend to cooperate fully regarding this non-public, fact-finding inquiry and are also continuing with our own internal investigation as previously announced," he added.
OCZ says it does not intend to comment further on this matter unless and until this matter is closed or further action is taken by the SEC which, in OCZ's judgment, "merits further comment or public disclosure."
October 10, 2012, OCZ issued a press release announcing that it was delaying the filing of its financial results for the second quarter of fiscal year 2013, which ended August 31, 2012. The press release also disclosed that OCZ's second quarter revenue will be "materially lower" than its previous guidance released on September 5, 2012, which was in the range of $110 to $120 million, "principally due to the impact of customer incentive programs," and that OCZ expects to report a "significant net loss." Shortly after the release of this news, shares of OCZ dropped nearly 42 percent from a close of $3.15 on October 9, 2012 to close at $1.88 per share on October 10, 2012.
SEC's inverstigation possibly seeks to determine, among other things, whether OCZ or its officers and directors have violated the Securities Exchange Act of 1934 or any other federal securities laws.
"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," said Ralph Schmitt, OCZ president and chief executive officer. "We intend to cooperate fully regarding this non-public, fact-finding inquiry and are also continuing with our own internal investigation as previously announced," he added.
OCZ says it does not intend to comment further on this matter unless and until this matter is closed or further action is taken by the SEC which, in OCZ's judgment, "merits further comment or public disclosure."
