OCZ Technology experienced a weak Christmas trading period, particularly in the UK and Russia.
OCZ had already put out a warning in November. It said falling prices and higher manufacturing costs would have a negative effect on the 2007 figures. The latest warning concerning weak demand has led OCZ to say that revenues will be between $111m and $113m in 2007, compared with forecasts of $126m. This still reflects strong growth during the year – 2006 revenues were $67.8m.
Profits excluding share-based payments are expected to be between $1.7m and $2.4m. That is well below what was expected and it seems a wide range for a trading period that has already ended.
At 34p, down 12p, the shares are trading at around one-fifth of their high for the year. The company is valued at £17.5m. That is equivalent to around one-third of revenues.
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