Feeds

Troubled OCZ now has feds up ass with microscope

Harsh cawing of lawyers fills the air

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.