OCZ declared itself bankrupt



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



    Recently, sales of the legend of the modern SSD market, OCZ Technology Group, have grown more than ever, however, the company's management decided to curtail their business due to low profitability. In this connection, Toshiba has already proposed to buy the company together with all the intellectual property and production facilities. In principle, this offer is beneficial to both companies.

    What really happened?


    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 for the same period of 2013. With an increase in expenses, this forced OCZ management to take a loan of $ 30 million at 15% per annum from Hercules Technology Growth Capital , while OCZ itself was a pledge in this transaction. After an unsuccessful attempt by OCZ to nevertheless fulfill the loan conditions, on November 25, Hercules took control of all OCZ accounts, and trading on OCZ shares on the stock exchange was suspended on the 27th.

    According to this article , if I understand correctly, there are several main causes of failure:
    1. Strategic excellence from other NAND manufacturers such as Micron Technology
    2. Bad business plan coupled with incompetent leadership
    3. Maintaining the controller development unit using chips manufactured by LSI Corporation in most products
    4. Failure to cut costs, lay off employees, etc., even when profits have waned


    Also. According to Reuters, the company did not disclose to the general public data on annual profits over the past 5 years.

    Will Toshiba infusions help?


    As soon as the bankruptcy was announced, Toshiba offered the aforementioned Hercules to buy out completely OCZ Technologies. However, it is not so simple, since first OCZ will have to file for bankruptcy proceedings, and only in court Toshiba’s offer to buy its property can be considered the best in the circumstances. But what will Toshiba do with such a rich legacy is still difficult to say. It is possible on the basis of OCZ, while maintaining the best traditions, a unit will be organized within the Japanese giant, which will strengthen Toshiba's position in the portable equipment market.

    What will happen next?


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

    PS: Don’t particularly kick, I wrote in a hurry ...
    PPS: Still, Toshiba will buy OCZ within 2 months. Question price for all-all-all - $ 35 million


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