Wednesday, November 27, 2013

OCZ declared bankruptcy, assets likely to be bought by Toshiba



Troubled SSD company comes to the end of roller coaster saga as lender seizes bank account and negotiations begin to sell off assets.





OCZ has finally declared that it has failed.

The troubled SSD maker reported that it was filing for bankruptcy at the end of the Wednesday trading day in New York, as it shares were suspended that morning pending a major announcement. In a news release, OCZ said that Toshiba had agreed to acquire all the assets of the company subject to a number of conditions including retention of all employees.

Last year during a conference call newly appointed CEO Ralph Schmitt admitted that his company had failed shareholders.

“We are here to generate value for shareholders, and we’ve failed at that mission,” he said. “We’ve lost credibility, but we’ll gain it back with consistent execution that will achieve effective results.”

OCZ has not declared a profit in five years, and has been rocked by a number of challenges and scandals in that time. It had been unable to secure a constant supply of NAND chips, a key ingredient in SSDs, and faced a CEO whose interests may not have been aligned with the company. Ryan Petersen is said to have axed a takeover deal from Seagate when he wasn’t granted a seat on the board. Subsequently, he took off for Panama and broke off contact with the company which was likely the cause of long delays in filing earnings reports with the SEC.

OCZ reported it lost $125.8 million while generating revenues of $334 million in the most recent fiscal year.

Source: OCZ



Read More: http://vr-zone.com/articles/ocz-decl...iba/65227.html






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