OCZ Continues to Shift Business Model Towards SSDs

OCZ’s previous investments include $20 Million in additional funding on top of their initial IPO to support the research and development of new Solid State technologies. As the shift occurs, OCZ has shifted their revenue guidance downward by $35M to a range of $165 to $180 Million. This initially risky move may, in the end, prove to reduce their overall return rate on products and likely improve their gross margins significantly. From taking a quick glance at OCZ's financials, we can see that they have been struggling to be profitable and achieve positive margins. The removal of this segment their DRAM business will in the short term reduce their revenue but have an immediate effect on their margins if the ceteris paribus assumption is applied.