News

Small interim loss expected at OCZ

22 September 2008 09:02:00

High end PC components company OCZ expects to break even or register a slight operating loss at the interim stage.

The group expects to report revenues of between $79 and $81m for the six months to end-August 2008, up from $51m a year earlier.

OCZ expects non-memory based products will account for around one-third of all revenues, reflecting the group's move away from dependence on high-performance RAM.

The power supply unit product line is growing strongly, with revenues up by about 80%.

European revenues should show a 75% to 80% improvement at the interim stage while sales in the Asia Pacific region should show growth of about 70%.

Trading in June and part of July was hit by the move to larger but less expensive manufacturing facilities in Taiwan which necessitated the temporary suspension of manufacturing activity.

On the bright side, the benefits of the increased throughput and greater efficiency of the new plant showed through in August, leading to record margins as well as record sales.

In view of the current circumstances in credit markets the company has tightened up its payment terms and "as a result of strong demand, has also been able to reduce its exposure to customers who have not been willing to adhere to these more stringent terms."

The group is broadly on course to meet market expectations for the full financial year.

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