OCZ Technology Provides Further Update

OCZ Technology Provides Further Update 
SAN JOSE, CA -- (Marketwire) -- 01/31/13 --  OCZ Technology Group,
Inc. (NASDAQ: OCZ), a leading provider of high-performance
solid-state drives (SSDs) for computing devices and systems, today
announced additional estimated financial information in an effort to
further communicate with key constituents of the Company.  
The following preliminary estimates are subject to further review by
the Company and its auditors. The Company estimates that its
quarterly revenue will range between $65 million to $85 million in
each quarter for the second and third fiscal quarters of 2013. This
range takes into effect the impacts of the reclassification of
certain customer costs from operating expenses to revenue, the
significant reduction of channel inventory, the timing of revenue
recognition, and the levels of reserves for product returns.  
As previously disclosed the Company had streamlined its business,
reduced its workforce and discontinued approximately 150 product
variations, including approximately 80% of its lower-end value
products. The Company estimates that inventory charges primarily due
to product discontinuance and market prices will be approximately $15
million in the second fiscal quarter and approximately $30 million in
the third fiscal quarter. As of the end of December, certain balance
sheet items were estimated to be at the following approximate levels:
cash of $9 million, trade receivables of $35 million, with related
day sales outstanding of 55, bank debt of $7 million, and trade
payables of $30 million.  
"We feel that it is appropriate to release information to our valued
investors, customers and suppliers in order to not only build
credibility but to be as transparent as possible during this period
of limited public information. We continue to improve the operating
aspects of the company and are making progress on releasing the
restated financial statements. The revenue levels of our two
unreported quarters were lower than previous revenue results due to
significant discounting and the reduction of channel inventory in Q3.
Both of these effects are now mostly behind us and moving forward
there will be a new revenue baseline which will be lower than
previous reported revenues due to the impact of the Company's refined
focus towards the mainstream and higher-end consumer SSD products, as
well as addressing enterprise and OEM solid state storage solutions.
We believe that this strategy will allow us to build a profitable
business within Fiscal 2014, which starts at the end of February, and
should allow the Company to grow between 20-30% on a year over year
basis," stated Ralph Schmitt, CEO of OCZ Technology.  
About OCZ Technology Group, Inc.
 Founded in 2002, San Jose, CA-based
OCZ Technology Group, Inc. (NASDAQ: OCZ) is a global leader in the
design, manufacturing, and distribution of high-performance
solid-state storage solutions and premium computer components.
Offering a complete spectrum of solid-state drives (SSDs), OCZ
provides SSDs in a variety of form factors and interfaces (i.e. PCIe,
SAS and SATA) to address a wide range of client and enterprise
applications. Having developed firmware and controller platforms, to
virtualization and endurance extending technologies, the Company
delivers vertically integrated solutions enabling transformational
approaches to how digital data is captured, stored, accessed,
analyzed and leveraged by customers. For more information, please
visit: www.ocztechnology.com. 
Forward Looking Statements
 Certain statements in this release relate
to future events and expectations and as such constitute
forward-looking statements involving known and unknown factors that
may cause actual results of OCZ Technology Group, Inc. to be
different from those expressed or implied in the forward-looking
statements. In this context, words such as "will," "would," "expect,"
"anticipate," "should" or other similar words and phrases often
identify forward-looking statements made on behalf of OCZ. It is
important to note that actual results of OCZ may differ materially
from those described or implied in such forward-looking statements
based on a number of factors and uncertainties, including, but not
limited to, the risk that additional information may arise from the
oversight of the audit committee; the risk that the process of
preparing and auditing the financial statements or other subsequent
events would require OCZ to make additional adjustments; the time and
effort required to complete the restatement of the financial reports;
the ramifications of OCZ's potential inability to timely file
required reports; including potential delisting of OCZ's common stock
on NASDAQ; the risk of litigation or governmental investigations or
proceedings relating to such matters; the risk that OCZ may not be
able to successful negotiate an amendment to its credit facility;
market acceptance of OCZ's products and OCZ's ability to continually
develop enhanced products; adverse changes both in the general
macro-economic environment as well as in the industries OCZ serves,
including computer manufacturing, traditional and online retailers,
information storage, internet search and content providers and
computer system integrators; OCZ's ability to efficiently manage
material and inventory, including integrated circuit chip costs and
freight costs; and OCZ's ability to generate cash from operations,
secure external funding for its operations and manage its liquidity
needs. Other general economic, business and financing conditions and
factors are described in more detail in "Item 1A -- Risk Factors" in
Part I in OCZ's Annual Report on Form 10-K filed with the SEC on May
14, 2012, and statements made in other subsequent filings. The filing
is available both at www.sec.gov as well as via OCZ's website at
www.ocztechnology.com. OCZ does not undertake to update its
forward-looking statements. 
All trademarks or brand names referred to herein are the property of
their respective owners. 
OCZ Press Contact:
Scott Harlin
Director of Marketing Communications - Enterprise
(408) 440-3484
sharlin@ocztechnology.com 
OCZ Investor Relations Contact:
Bonnie Mott
Senior Manager of Investor Relations
(408) 440-3428
bmott@ocztechnology.com 
 
 
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