Feeds

Troubled OCZ now has feds up ass with microscope

Harsh cawing of lawyers fills the air

  • alert
  • submit to reddit

HP ProLiant Gen8: Integrated lifecycle automation

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. ®

Reducing security risks from open source software

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
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.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.