OCZ Technology Group Sees Q1 Revenue To Be Sequentially Lower - Quick Facts

(RTTNews) - OCZ Technology Group Inc. (OCZ) announced the preliminary financial results for the first quarter ended May 31, 2013. Preliminary revenue for the first quarter of fiscal 2014 is estimated to be between $50 million and $55 million. The sequential decrease in revenue was primarily due to the continued tight supply of NAND flash.

The company said that its revenue mix continued to shift towards the mainstream and higher-end client markets, as well as enterprise and OEM solutions as the Company continued to focus on these end markets. At the end of the quarter there was an additional $23 million of shippable backlog that was unrealized in the quarter due to supply constraints.

Gross margin continued to improve and is estimated to be between 17% and 20% for the first fiscal quarter as revenue generated from our Enterprise solutions increased sequentially. The Company continued to reduce its operating expenses by further reducing non critical spending. The Company's break-even level continues to improve due to these actions. Operating expenses for the first quarter are estimated to be between $20 and $22 million, which include restatement related expenses of approximately $1.5 million and stock compensation charges of approximately $2 million.

"We expect to continue to experience supply constraints of NAND in the second quarter but have established strong supply commitments to adequately meet demand in the third and fourth quarters…..Our goal remains to break even in this fiscal year," said Ralph Schmitt, CEO of OCZ Technology.