Monday OCZ Technology Group reported its fiscal 2011 third quarter results, revealing that the company plans to bail out of the DRAM sector and phase out all remaining DRAM products by the end of its fiscal year of February 28, 2011.
"In August 2010, the Company announced a strategic optimization of its memory products whereby it discontinued certain unprofitable commodity memory module products with the intent to continue only with certain high-performance memory products. However, since that time, there has been well-chronicled, continued weakness in the global DRAM markets," the company said in the report.
After considering the capital needs of the company's growing SSD products against the weaknesses of the DRAM market, the board determined that it would be in the best interest of the stockholders to accelerate its plans to discontinue the remaining DRAM module products by the end of February as previously mentioned.
"Revenue generated from our Solid State Drive products for the third fiscal quarter more than doubled on a sequential basis," said Ryan Petersen, Chief Executive Officer of OCZ Technology. "SSD revenue accounted for 78-percent of our revenue and just by itself exceeds our historical quarterly revenue totals across all categories, thus reinforcing our decision to discontinue our remaining DRAM products."
An attached chart revealed the company's loss in the DRAM sector, showing a net revenue of $22.04 million in fiscal Q3 2009 that eroded over time down to $6.26 million in fiscal Q3 2011. Its SSD portion saw the exact opposite, showing a jump from $2.16 million in fiscal Q3 2009 to a hefty $41.47 million in fiscal Q3 2011.
OCZ said that its DRAM products are now expected to have minimal, if any, sales in the next fiscal year and beyond.
