OCZ might have made some money ... maybe ... we think so anyways ... possibly (UPDATED)
Subject: General Tech | February 6, 2013 - 01:20 PM | Jeremy Hellstrom
Tagged: fud, ocz, income, doom
OCZ is hours away from being delisted from the stock exchange and it will be very difficult for them to make the deadline as they have to submit a plan detailing how they will provide an accurate accounting of their quarterly profits by Feb 28th. This is a bit of a problem considering that they do not seem to have submitted an accurate profit statement since Q1 of 2012 at the most recent. In Q2 Ryan Petersen originally forecasted profits between $110-120m but after Petersen left and Ralph Schmitt took over those predicted profits dropped drastically to somewhere around $65-$85m, not accurate enough for Wells Fargo to consider it a proper financial statement. From what The Register has learned, OCZ cannot estimate Q2 or Q3 earnings at this time, nor are they quite sure what the economic impact incentive programme liabilities and inventory run-down charges will have. Things do not look good.
We heard from OCZ that they have indeed been working hard with Crowe Horwath LLP on getting their preliminary results for 2012 and Q1 of 2013 ready for the market. It was also brought to our attention that the Nasdaq is permitted to grant an extension of up to 180 days, which would be April 8th, for the Company to regain compliance with the SEC and other institutions. This lessens the danger that OCZ faces and while the stock has tumbled a bit over the past few months as of this update they are at $2.09/share, flat for the days trading, traders are exhibiting confidence in the company. According to Seeking Alpha last night it was announced that "The Company estimates that its quarterly revenue will range between $65 million to $85 million in each quarter for the second and third fiscal quarters of 2013." That is still a wide variance but you should not count OCZ out quite yet. We will continue to keep an eye on the market and OCZ's responses.
"Stifel Nicolaus analyst Aaron Rakers noted there was no announcement of a filing of the required Nasdaq update plan today. Unless that is handed in on time, OCZ is out of Nasdaq and, as a result, getting bank credit will be much more difficult. Wells Fargo could wave goodbye and consign OCZ to the scrap heap in a forced asset sale. This is about as bad as it gets, but OCZ's survival is still possible."
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