OCZ "back on track", taps more NAND chip suppliers
By Sruthi Ramakrishnan and Sriraj Kalluvila
(Reuters) - Solid-state hard drive maker OCZ Technology Group Inc is sourcing a critical component from multiple vendors after a supply shortage caught it off guard, contributing to a near 60 percent drop in its share price.
"Recently we haven't had any significant NAND supply issues, mostly because we diversified ourselves to multiple suppliers. That was part of the issue before. We were overly reliant on one supplier," Ralph Schmitt, who was named CEO in October after the resignation of co-founder Ryan Petersen, said in an interview.
OCZ shares rose as much as 30 percent to $1.76 on the Nasdaq on Thursday.
The company, known for its Vertex brand, warned in September that it expected second-quarter revenue to be below its prior forecast due to a shortage of NAND chips, used for general storage and data transfer in memory cards and solid-state drives.
The company later said it expected a "significant" loss in its second quarter due to issues in its customer incentive programs, and also delayed filing the results.
Schmitt said a third-party review of OCZ's investigation into customer incentive programs at the heart of the expected loss had taken longer than expected, so it was unclear when the company would report its second-quarter results.
"I wish I knew the answer to that question," Schmitt said, adding that the review may end by next week.
OCZ said last week that it was being investigated by the Securities and Exchange Commission because of the delayed results and had received a subpoena requesting certain documents and information. Continued...