OCZ announced fiscal Q1 2012 revenue of $73.8 million, up 115 percent year-over-year, as SSD revenue soared 418 percent to $69.1 million. While the company's sales are rising, losses on the other hand are also rising:
OCZ also reported record revenues in their SSD business which raked in $69.1M and increase of 418% over the same period a year ago and a 19% increase compared to $58.2M in the previous quarter, fiscal 4Q 2011. This represents 94% of their total revenues, which appears to be the direction OCZ wishes to go in considering their announcement regarding their RAM business; which is now dead. They still have yet to announce what they are going to do with their Power Supply Business (PC Power and Cooling).
Even when taking all of this into consideration and all of these stellar figures, OCZ still remains to show any profitability. This may be their biggest weak point as they have struggled to show profitability in this move towards being an SSD company. Their acquisition of Indilinx may have had a part in that last quarter, but OCZ actually widened their operating losses compared to the previous quarter increasing them from $3.4M in the 1Q 2011 to $4.3M in 1Q 2012. Their net losses were an even worse story. OCZ reported $9.1M losses in 1Q 2012 compared to $4.8M in the same quarter a year ago. These can mostly be attributed to OCZ’s paying off of many previously existing debts and decreasing their financing costs by 20% from last year and 60% from 4Q 2011. This was partially possible as a result of a second round of share offerings which yielded them $93M in net proceeds.