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OCZ quits the DRAM game

by Pete Mason on 11 January 2011, 18:27

Tags: OCZ (NASDAQ:OCZ)

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We've seen a lot of companies that started out selling system memory diversifying in recent years and moving into the SSD, chassis, audio, cooling and PSU markets. But now OCZ has taken this to its logical conclusion by announcing that it will be leaving its roots behind and departing the memory market all together.

The new comes on the back of the component-maker's third quarter financial report. The company's SSD business reported that revenues were up a massive 325 per cent over the same quarter last year for a total of $41.5 million. This also marked a 105 per cent increase over Q2 revenues, demonstrating just how quickly the solid-state market is growing.

The memory business fared poorly though, reporting revenues of just $6.26 million - a drop of over 50 per cent compared to Q2 and 71 per cent lower than the revenue in the same quarter a year ago. Although this is partly due to the highly competitive memory market, it's also a result of the company's decision in August to discontinue all but its high-performance memory products.

Overall OCZ generated $53.2 million in revenue this quarter, which translated to a non-GAAP operating income of $0.1 million. This compares to a loss of $1 million for the same quarter last year.

With the SSD market growing so quickly and flash storage now accounting for almost 80 per cent of the company's revenue, it's no surprise that OCZ would want to focus on that part of its business. All DRAM products will be discontinued by the end of the company's financial year on February 28, so should start disappearing from retailers over the coming months.



HEXUS Forums :: 22 Comments

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vdbswong
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Fair play to OCZ. In this global economy you need to move with the times and keep your business model where the most money can be made.
The DRAM game is pretty stagnant (in that it isn't growing) and Kingston pretty much rule the roost. The SSD market on the other hand is growing like mad, and no one company has really managed to establish a dominant position.

From a business perspective I guess it makes sense. Still a bit of a shame - I quite liked OCZ memory.
Did OCZ make any high performance RAM like HyperX or XMS ?
yeah OCZ Reaper :)