Edit Symbol List
Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.
Don't know the stock symbol? Use the
Symbol Lookup tool.
Alphabetize the sort order of my symbols
Investing just got easier…
Sign up now to become a NASDAQ.com member and begin receiving instant notifications when key events occur that affect the stocks you follow.Access Now X
OCZ Technology (OCZ)
F4Q11 Earnings Call
May 3, 2011 5:00 p.m. ET
Bonnie Mott – IR Director
Ryan Petersen – CEO
Arthur Knapp - CFO
Rich Kugele - Needham and Company
Aaron Rakers – Stiefel Nicolaus
Alex Kurtz – Sterne, Agee
Christian Schwab – Craig-Hallum Capital
Richard Shannon – Northland Capital
» OCZ Technology CEO Discusses F2Q11 Results - Earnings Call Transcript
» Smith Micro Software's CEO Discusses Q1 2011 Results - Earnings Call Transcript
I would now like to introduce your host for today’s conference, Ms. Bonnie. Mott, Investor Relations Manager at OCZ Technologies. Ms. Mott, you may begin your conference.
Good afternoon, and welcome everyone. On the call today are Ryan Petersen, CEO and Art Knapp, CFO. Ryan will provide a business overview and then Art will review the firm’s financial results. Following their formal remarks, we will open the floor to a few questions.
Before I turn the call over to them, I need to remind our listeners that the information is presented as of May 3, 2011. Please keep in mind that while being made available for listening after today, the information is current only as of today. Remarks made during this call may contain forward-looking statements that involved risks and uncertainties. Forward-looking statements on this call are made pursuant to this Safe Harbor Provisions of the Federal Securities Laws. Information contained in the forward-looking statements is based on current expectations and is subject to change and actual results may differ materially from forward-looking statements.
Some of the factors that could cause actual results to differ are discussed in the reports filed with the SEC. These documents are available on OCZ's website, www.ocztechnology.com.
With that, it is now my pleasure to turn the call over to Ryan Petersen.
Thanks, and good day to all of you. We’re pleased with the results during fiscal 2011, as we have transformed this company from a simple DRAM module business to a leader in the virgining SSD market.
We were able to introduce an array of leading-edge products, drive demand in new markets, and exit from our unprofitable DRAM module products ahead of plan. When looking at the core SSD business, our fourth quarter was the best quarterly performance in the history of OCZ, in terms of both revenue and profitability. And we believe that we’re well positioned to take advantage of continued secular growth in the market.
The additional working capital provided through our financings in fiscal 2011, allowed us not only to increase manufacturing capacity and support increased demand for our SSD product, but to further advance our R&D and marketing efforts, positioning us well for the expected growth in the SSD market.
We expect our current – our recent capital raise in April, which was completed after the end of our fiscal year, to further these efforts in fiscal 2012. As most successful companies are built on the experience, hard work, and dedication of their employees, management team, and Board of Directors, it’s worth noting that our recent success has elevated our company profile, allowing us to enhance our management team and Board of Directors.
In the past 12 months, we’ve had several key additions to our management team, including Chief Sales Officer Richard Singh, who has helped drive the dramatic sales growth in quarter – in the third and fourth quarters, and the recent additions of Senior Vice President of Product Management, Steven Lee, and Indilinx’s co-founders Bumsoo Kim and Hyun Mo Chung who joined OCZ through the Indilinx acquisition.
I’ll discuss the acquisition in greater detail in just a moment.
I’d also like to welcome Ralph Smith to our Board of Directors. Ralph is the CEO of PLX Technology, and shares the Global Semiconductor Alliance Emerging Company Council. His expertise in managing market-leading semiconductor companies is extremely valuable given our recent acquisition of Indilinx, and we look forward to his value contributions.
In regards to our financial progress, as previously announced in the fourth quarter, net revenue totaled a record $64.4 million, of which 58.2 million or approximately 90% was generated from our SSD products, also a quarterly record.
Our fourth quarter year-over-year SSD growth rate increased to 380%, even higher than the 325% year-over-year growth rate we reported in the third quarter. On a sequential basis, the 58.2 million of SSD revenue in Q4 grew 40% over third quarter’s revenue of – or our SSD revenue, 41.5 million.
We achieved overall revenues of 190.1 million in fiscal 2011, of which 133.2 million were SSD revenues.
Of particular importance, 100 million or 75% of SSD revenues were generated in the second half of the fiscal year. And while seasonality is always a factor, this rapid growth was facilitated by the working capital increases from our financings completed in fiscal ’11, which allowed us to better fill pre-existing demand for our SSD products.
Taking a look at our SSD revenue by region, it’s important to note that regional data is based on the delivery destination. For example, large OEM clients who manufacture in Asia or Europe, and export the final product could be recognized as APAC or EU sales, based on the delivery destination specified by the client. Thus, we would expect that the majority of our revenue will continue to be shown as outside of the U.S. in line with hard drive industry trends.
The highlights, keep [inaudible] on regional growth, as SSD sales in North America, increased 160% to $19.4 million in the fourth quarter, up from just 7.5 million in the fourth quarter of last year.