OCZ pleaded bankrupt

Just crazy news before the end of the work week and year. The company OCZ , which is one of the leading manufacturers of solid-state drives (SSD) and memory modules (RAM), recently announced the beginning of a bankruptcy procedure .


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Recently, sales of the legend of the modern SSD market, the OCZ Technology Group, have grown more than ever, but the company’s management has decided to shut down the business due to its low profitability. In this connection, Toshiba has already offered to buy out the company along with all intellectual property and production facilities. In principle, this offer is beneficial for both companies.

What happened after all?

According to the Internet ( 1 and 2 ) in 2013, the company's revenue fell from $ 88.6 million in the second quarter of 2012 to $ 33.5 million in the same period of 2013. With the increase in costs, this forced OCZ management to borrow a loan of $ 30 million at 15% per annum from Hercules Technology Growth Capital , while OCZ itself was the key to this transaction. After an unsuccessful attempt on the part of OCZ to fulfill the conditions of the loan, on November 25, Hercules took control of all OCZ accounts, and on the 27th, trading in OCZ shares on the exchange was suspended.

According to this article , if I understand correctly, there are several main reasons for failures:

1. Strategic superiority of other NAND manufacturers, for example, Micron Technology
2. Bad business plan coupled with poor management
3. Saving the controller development unit when using chips manufactured by LSI Corporation in most products
4. Failure to reduce costs, lay off employees, etc., even when profits have waned

Also. According to Reuters, the company has not disclosed to the general public data on annual profits in the past 5 years.

Will Toshiba Infusions Help?

As soon as bankruptcy was announced, Toshiba offered the aforementioned Hercules to buy out fully OCZ Technologies. However, this is not so simple, since OCZ will first have to file for bankruptcy proceedings, and only in court will Toshiba's offer to buy out her property be the best in these circumstances. And what Toshiba will do with such a rich legacy is difficult to say. It is quite possible on the basis of OCZ, retaining the best traditions, a division will be organized within the Japanese giant, which will allow Toshiba to strengthen its position in the portable technology market.

What will happen next?

As representatives of the OCZ company themselves assure, at the moment, users do not have to worry. During the warranty period of all SSD drives, users will be provided with all the necessary support and assistance.

PS: Especially do not kick, wrote in a hurry ...
PPS: Still, Toshiba will buy OCZ within 2 months. Issue price for all-all-all - $ 35 million

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