Subject: General Tech | October 10, 2013 - 01:51 PM | Jeremy Hellstrom
Tagged: ocz, turnaround, SEC
OCZ's new CEO Ralph Schmitt has been quite successful in turning the company around from the financial pickle they found themselves under Ryan Petersen's leadership. Back in February of this year OCZ was about to be delisted from the stock exchange due to the fact that they had not filed an acceptable financial statement in a full year. This was caused from a variety of problems from mismanaged incentive programs to internal miscommunications which caused the company's leadership to be unaware of costs and profits which lead to the SEC coming down hard on OCZ.
With the new leader OCZ has really managed to turn their finances around and more importantly they are now able to file accurate financial reports. This has not happened painlessly, the new accurate financials show OCZ suffering significant losses prior to 2012 and the chart from The Register reveals an odd trend which showed that the more revenue OCZ made the larger their loss at the end of the quarter. This trend has ceased thanks to a complete restructuring of OCZ's management and business plans as well as a trend to a more focused consumer product line as well as testing out Enterprise products.
OCZ is no longer in danger of disappearing from the market and while revenue will be down compared to the previous few years Net Income is rising towards showing a profit, even in the current shrunken PC market. Hopefully their venture into the Enterprise market will help them grow even more and make the company as truly successful as it once appeared that they were.