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.