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OCZ Technology Group, Inc. (NASDAQ:OCZ) engages in the design, manufacture, and distribution of solid state drives (SSDs) and computer components primarily in the United States, Canada, Germany, the Middle East, Africa, and other European countries. It specializes in high-speed memory in the enterprise and consumer SSD markets, a technology that competes with traditional rotating magnetic hard disk drives.

It is scheduled to report its Q1 2013 results on July 10, 2012, after the bell. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $395.69M and is currently trading at $5.85 with a 52 week range of $4.14 - $10.94. The stock performance year to date: -11.50%. It is currently trading above 20 and 50SMA, but below 200SMA.

Key Metrics

  • Trailing P/E: N/A
  • Forward P/E: 5.74
  • Price/Sales: 0.97
  • Price/Book: 1.43
  • Annual dividend yield: N/A
  • Return on Equity: -13.61%
  • Return on Assets: -1.71%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last quarters. In the last quarter it reported ($0.11) loss per share, failing to meet analyst estimates of $0.00.

The consensus EPS is ($0.12) loss based on 11 analysts' estimates, down from $0.01 a year ago. Revenue estimates are $115.72M, up from $73.79M a year ago. The median target price by analysts for the stock is $13.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 24, 2012, The Benchmark Company reiterated Hold rating for the company.
  • On February 28, 2012, Dougherty & Company initiated Buy rating for the company.

Latest Developments

  • On June 27, 2012, OCZ Technology Group Inc announced that Dynamite Data, has selected OCZ's Deneva 2 SATA III SSDs as part of updated storage infrastructure.
  • On May 8, 2012, OCZ Technology Group Inc and IceWEB Storage Corporation announced that OCZ's SAS-based Talos 2 SSDs and SATA III-based Deneva 2 SSDs have been selected by IceWEB for inclusion in IceWEB's complete line of unified data storage systems.
  • On May 1, 2012, OCZ Technology Group Inc announced that for the first quarter of 2013, it expects net revenue to be in the range of $110 million to $120 million. For fiscal 2013, the Company expects net revenue to be in the range of $630 million to $700 million.
  • On April 23, 2012, OCZ Technology Group, Inc. announced that its SAS-based Talos Two SSDs have been selected by HyVE (Hybrid Virtualization Engine) Systems for implementation within three high-compute platforms targeted for virtual desktop infrastructure (VDI) academic and corporate end user compute solutions.
  • On March 29, 2012, OCZ Technology Group Inc announced that it has signed a distribution agreement with Promark Technology, which increases the availability of OCZ's enterprise SSDs to Promark's portfolio of VARs (value added resellers) and system integrators in the United States.
  • On February 13, 2012, OCZ Technology Group Inc announced closing of its previously announced common stock offering of 12,000,000 primary shares at a price of $9.00 per share.
  • On February 8, 2012, OCZ Technology Group Inc announced the upsizing and pricing of a common stock offering of 12,000,000 primary shares at a price of $9.00 per share, reflecting an upsize from the previously announced offering of 10,000,000 primary shares.
  • On January 9, 2012, OCZ Technology Group Inc announced that it has acquired SANRAD Inc., a privately held provider of flash caching and virtualization software and hardware.
  • On January 9, 2012, OCZ Technology Group Inc announced that for the fourth quarter of 2012, it expects revenue to be in the range of $105-$120 million. For fiscal 2012 it expects revenue to be in the range of $360-$375 million.

Competitors

OCZ Technology Group, Inc. operates in Data Storage Devices industry. The company could be compared to Dot Hill Systems Corp. (NASDAQ:HILL), Intel Corporation (NASDAQ:INTC), Quantum Corporation (NYSE:QTM), and STEC, Inc. (NASDAQ:STEC). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)OCZ Chart

OCZ data by YCharts

Competitors' Latest Development

  • On June 18, 2012, InterDigital Inc and Intel Corporation announced that certain of InterDigital`s subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.
  • On June 7, 2012, Phoenix Technologies Ltd., a company in UEFI firmware technology, products and tools, announced it has signed an agreement with Intel Corporation to be its collaborative partner for BIOS.
  • On June 5, 2012, Dot Hill Systems Corp. announced it has signed an agreement with PAC Data, a storage-focused North American distributor. Under the terms of the agreement, PAC Data will offer the full range of Dot Hill's AssuredSAN storage solutions, allowing Dot Hill to expand its reach to new resellers and focus on a variety of new markets.
  • On June 4, 2012, Avanquest Software SA has announced having signed a collaboration agreement with Intel Corporation for the marketing of Avanquest Software's flagship titles on the Intel AppUpSM center in France.
  • On May 9, 2012, Dot Hill Systems Corp announced that for the second quarter of 2012, it expects non-GAAP net revenue in the range of $48 million to $52 million and a non-GAAP EPS in the range of a loss of $(0.03) per share to a profit of $0.01 per share.
  • On May 8, 2012, STEC Inc announced that for second quarter of 2012, it expects revenue to range from $40 million to $42 million and non-GAAP diluted loss per share to range from $0.26 to $0.28.
  • On May 7, 2012, Intel Corporation announced that its board of directors has approved a 7% increase in the quarterly cash dividend to $0.225 per share ($0.90 per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2012.
  • On May 2, 2012, Cray Inc. announced that it has completed the previously announced transaction to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On April 27, 2012, Aware, Inc. announced that it has signed an agreement for the sale of selected patents and patent applications to Intel Corporation for approximately USD75,000,000.00, subject to customary closing conditions and any required regulatory approvals.
  • On April 25, 2012, Reuters reported that Intel Corporation will ask Europe's second-highest court in July to scrap a EUR1.06 billion ($1.4 billion) EU antitrust fine, arguing regulators failed to prove it blocked a rival in their 2009 decision.
  • On April 24, 2012, Cray Inc. announced that it signed a definitive agreement to sell its interconnect hardware development program and related intellectual property to Intel Corporation for $140 million in cash.
  • On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.
  • On April 18, 2012, Dot Hill Systems Corp announced that its AssuredSAN storage is being used by post production solutions developer SGO within its turn-key Mistika systems due to storage system flexibility and outstanding price/performance.
  • On April 18, 2012, SeeNews - The Corporate Wire reported that the shares of Apple Inc, Visa Inc, Intel Corp, The Coca-Cola Company and Bank of America Corp can be traded on the Bucharest bourse as of April 18, 2012.
  • On March 14, 2012, Dot Hill Systems Corp. announced that for fiscal 2012, it expects revenue of $205-$225 million and non-GAAP EPS of $0.02-$0.08. For first quarter of 2012, it expects net revenue in the range of $49-$53 million and a non-GAAP earning per share (NYSEARCA:EPS) in the range of $(0.02)-$0.02.
  • On February 28, 2012, STEC Inc announced that for the first quarter of 2012, it expects revenue to range from $49-$51 million. Diluted non-GAAP loss per share to range from $0.14 to $0.16.
  • On February 6, 2012, Dot Hill Systems Corp. updated the fourth quarter 2011 guidance and expects non-GAAP revenues to be approximately $48 million and non-GAAP loss per share to be between $0.02-$0.03.
  • On January 25, 2012, Quantum Corporation announced that for the fourth quarter of 2012, it expects revenue of $160 million to $170 million. According to I/B/E/S Estimates, analysts are expecting the Company to report $170 million for the fourth quarter of 2012.
  • On January 17, 2012, Dot Hill Systems Corp. announced it has entered into a supply agreement with Autodesk, Inc. Under the terms of the agreement, Autodesk will integrate Dot Hill's AssuredSAN 3000 Series 8Gb Fibre Channel storage offering as part of Autodesk's turnkey solution for 3D visual effects and finishing.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: OCZ Technology Group