DV Hardware - bringing you the hottest news about processors, graphics cards, Intel, AMD, NVIDIA, hardware and technology!
   Home | News submit | News Archives | Reviews | Articles | Howto's | Advertise
DarkVision Hardware - Daily tech news
July 18, 2019 
Main Menu
News archives

Who's Online
There are currently 69 people online.


Latest Reviews
Ewin Racing Flash gaming chair
Arctic BioniX F120 and F140 fans
Jaybird Freedom 2 wireless sport headphones
Ewin Racing Champion gaming chair
Zowie P-TF Rough mousepad
Zowie FK mouse
BitFenix Ronin case
Ozone Rage ST headset

Follow us

OCZ shares collapse 40 percent on earnings mis

Posted on Thursday, October 11 2012 @ 14:10:16 CEST by

OCZ logo
Yesterday OCZ Technology named Ralph Schmitt its new CEO but the news was almost immediately followed by an announcement that issues with the company's customer incentive program would result in a significant loss for the second quarter that ended August 31. Reuters reports OCZ didn't go into the details, other than that the revenue for fiscal Q2 would be "materially lower" than anticipated due to unspecified problems.

Benchmark Co analyst Gary Mobley suggests the earnings shortfall was caused by pumped up incentive programs initiated by prior CEO Ryan Petersen, an attempt to gain marketshare at a significant financial cost.

OCZ's shares fell 42 percent and closed the day at $1.88.
The customer incentive programs, which include rebates and price adjustments, will continue, Schmitt said, but they have been redesigned to achieve better results.

The latest issue at OCZ follows a string of quarterly earnings below expectations, which had already helped drive down the value of its shares by two-thirds since early February.

"OCZ has turned into a train wreck, to put it succinctly," Benchmark Co analyst Gary Mobley wrote in a note.

The prior CEO tried to gain market share by boosting incentive programs and lost sight of how this would impact second-quarter revenue, Mobley said.



DV Hardware - Privacy statement
All logos and trademarks are property of their respective owner.
The comments are property of their posters, all the rest © 2002-2019 DM Media Group bvba