Feeds

Troubled OCZ now has feds up ass with microscope

Harsh cawing of lawyers fills the air

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Flash storage springbok OCZ, which suddenly lurched into the intensive care ward and ditched its founding CEO, now has less of a spring in its step; it's received news of an SEC probe into the company.

This is to do with OCZ's inability to file a required business report for its latest quarter - some background here - due to some customer incentive programmes which are hard to unravel. The SEC letter to OCZ mentioned other, unrevealed, matters as well.

New CEO Ralph Schmitt said:

"Since we delayed the filing of our second quarter 10-Q, we had proactively contacted the Commission and have been expecting them to conduct an investigation. We intend to cooperate fully regarding this non-public, fact-finding inquiry and are also continuing with our own internal investigation as previously announced."

Trading in OCZ shares was briefly suspended when the news came out.

Stifel Nicolaus' Aaron Rakers notes:

The company has recently stated that it would likely need additional financing. ... it is working on raising cash via inventory liquidation ... OCZ has announced a 28 per cent global workforce reduction, excluding production personnel, which has been reduced by 32 per cent including outside contractors. The company reduced its production from three shifts for six days a week to two shifts per day for five days a week. ... notification from Nasdaq provides the company until mid-December to be up to date on its financial filings.

With nearly two dozen ambulance chasing lawyers drumming up investor support for class action lawsuits against the company over share price falls when the CEO was ditched - trying to blame some improper actions by management - Schmitt has his work cut out to get OCZ back on an even keel and back to trading normally. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.