OCZ to Stop Memory Biz, Focusing on SSDs
OCZ said on Monday that it's leaving the DRAM market.
Monday OCZ Technology Group reported its fiscal 2011 third quarter results, revealing that the company plans to bail out of the DRAM sector and phase out all remaining DRAM products by the end of its fiscal year of February 28, 2011.
"In August 2010, the Company announced a strategic optimization of its memory products whereby it discontinued certain unprofitable commodity memory module products with the intent to continue only with certain high-performance memory products. However, since that time, there has been well-chronicled, continued weakness in the global DRAM markets," the company said in the report.
After considering the capital needs of the company's growing SSD products against the weaknesses of the DRAM market, the board determined that it would be in the best interest of the stockholders to accelerate its plans to discontinue the remaining DRAM module products by the end of February as previously mentioned.
"Revenue generated from our Solid State Drive products for the third fiscal quarter more than doubled on a sequential basis," said Ryan Petersen, Chief Executive Officer of OCZ Technology. "SSD revenue accounted for 78-percent of our revenue and just by itself exceeds our historical quarterly revenue totals across all categories, thus reinforcing our decision to discontinue our remaining DRAM products."
An attached chart revealed the company's loss in the DRAM sector, showing a net revenue of $22.04 million in fiscal Q3 2009 that eroded over time down to $6.26 million in fiscal Q3 2011. Its SSD portion saw the exact opposite, showing a jump from $2.16 million in fiscal Q3 2009 to a hefty $41.47 million in fiscal Q3 2011.
OCZ said that its DRAM products are now expected to have minimal, if any, sales in the next fiscal year and beyond.
Because when the quality of your products goes down relative to the price of competing products, well, that's what happens.
Too bad- OCZ was one of the top-tier manufacturers of RAM, but not anymore.
Whether or not they'll pull a BFG on lifetime warranties on these DRAMs remains to be seen, I guess.
I liked their Reaper/Flex models.
But, at least they still make decent PSU rebadges and good SSD's.
I had to warranty some OCZ Platinum DDR2 a while back and was actually quite impressed with the service.
that and the only brand of SSD i will buy is Intel
I think this is good news really. OCZ modules have been plagued by compatibility issues and failure to perform to spec since 2004 or so.
after three RMA,... I told them to keep the reaper and give me basic memory.
So 128 dollars for two gigs of standard ddr2. Now that was two years ago. none the less havent though of ocz since then.
Blatantly telling the world SSD's are overpriced, nice.
The kit searched for: desktop DDR3 1600 at cas 8 2x4gb kits =~160$
was planning on running at pc 1564, 8-8-8-22, 1.6 v I can tweek on that some if a paticular kit won't go there.
Can't say I'll complain about OCZ and SSDs - they've been making fantastic drives recently.
I bought a 3x2GB 1600 set, and within a month one stick turned unstable, and at Cas9 1600 as they were advertised, the max I can run the remaining two is Cas9 1400.
I bought 6GB of 1600, and I run 4GB at 1400.
Byebye OCZ, won't miss you.