"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.