Trading Statement

RNS Number : 9212D
OCZ Technology Group, Inc.
22 September 2008

22 September 2008

OCZ Technology Group, Inc.

Half year trading update

OCZ Technology Group, Inc. ("OCZ" or "the Group", AIM: OCZ), a worldwide leader in innovative, ultra-high performance and
high-reliability computer components, announces a trading update for the six month period ended 31 August 2008.

Financial update

Trading finished strongly in the first half of the current financial year and the Group expects to report revenues of between $79
million and $81 million for the six month period (H1 2007: $51 million).

The Group's strategy to diversify the product range is gaining momentum. Non-memory based products are now expected to account for
approximately one-third of all Group sales in the first half of the financial year, of which power supply product revenues are expected to
increase by 80%.

European revenues have continued to grow strongly and are expected to increase by 75% to 80%. The Board also expects to report increases
in revenues in the Asia Pacific market of approximately 70%, over the corresponding period.

As previously announced in May, OCZ has continued to invest in both the operational infrastructure and human resources required to
support its continued rapid growth. In June, the Group moved its Taiwanese manufacturing facility to new larger, yet less expensive
premises, which has already allowed OCZ to achieve more efficient throughput of goods and contain costs as turnover grows. This relocation
and expansion, implemented during the traditionally slower summer season, resulted in the temporary suspension of manufacturing operations
and had an impact on trading in June and a portion of July.

The efficiencies from the new factory and the benefits from improvements to inventory turns implemented during the period benefited the
Group in August and are expected to continue into the second half of the financial year. August generated record sales and healthy margins.

The Board expects the Group to breakeven or report a slight loss at the EBITDA level for the six months period. This is broadly in line
with the Board's expectations due to traditional weaker sales during the summer months of June and July coupled with the recent factory
expansion.

The Group has tightened the payment terms it extends to its customers in reaction to turbulent credit markets 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 in advanced discussions with Silicon Valley Bank to increase its existing debt facilities from $10 million to $12 million.
The Board is confident that the Group's debt facilities, better working capital management and stronger purchasing power will ensure the
Group has sufficient working capital to support its growth in the medium term.

New products

OCZ released the first commercially available "brain computer interface", sold as the Neural Impulse Actuator ("NIA") during the first
quarter of the year. The NIA, which can be used in conjunction with the conventional mouse and keyboard, allows computer games players to
control on screen action with ocular, facial and brain signals. Initial sales demand has been in excess of production and the Group plans to
increase the production of NIA devices in the second half of the financial year.

In July, the Group launched its low cost Solid State Disk drives ("SSDs"). SSDs are generally recognized as offering faster data access
times and greater robustness than conventional internal hard disk drives, which they replace in both desktop and notebook computers, and are
more reliable, lighter and consume less power. By using its knowledge of flash technologies, OCZ's engineers were able to reduce production
costs and produce an excellent product at a competitive price. Initial consumer demand for SSDs significantly exceeded management
expectations and significant volumes of the product are now being delivered. Demand remains high.

In the high volume, high margin peripherals and associated products range, the Group has recently introduced its line of "whitebook" and
enthusiast Do It Yourself notebooks. The notebooks, which are assembled by a third party, offer premium performance and are highly
configurable. Although these notebooks are available through the Group's existing channels, under its Hypersonic brand, volume sales are
expected to be achieved through sales to OEMs. Early demand for the product has been encouraging. OEM deliveries are expected to commence
during this financial year.

Through the first half of the year, the Group has further developed its partnerships with leading platform partners including Intel, AMD
and NVIDIA. A highly successful collaboration with Intel resulted in the release of Intel/ OCZ co-branded "XMP" memory modules which are
optimized for the latest Intel based premium systems.

The Group continues to trade broadly in line with market expectations for the 12 month period ending 28 February 2009 and plans to
publish its results for the six month period ended 31 August 2008 in early November 2008.

Enquiries:

OCZ Technology Group, Inc
Ryan Petersen, Chief Executive Officer +1 408 733 8400
John East and Partners Limited
Bidhi Bhoma/John East +44 20 7628 2200
College Hill
Adrian Duffield +44 20 7457 2020

Note to editors
OCZ develops, produces, and distributes high-performance computer components including flash memory storage, memory modules, thermal
management solutions and computer power supplies, designed to make computers run faster, more reliably and more efficiently.
With a reputation for innovation and excellence in a demanding and discerning market, OCZ extended its market leadership when it
acquired PC Power & Cooling in May 2007, to become a global force in high-performance power supply and cooling products. In October 2007, it
acquired high performance laptop and desktop computer systems maker Hypersonic PC to further diversify its product offerings. Recently the
company released new products such as the Neural Impulse Actuator (NIA), Solid State Drives (SSD), DIY Notebook solutions, and Fatal1ty
memory solutions. These products were recently shown at Games Convention 2008 in Leipzig Germany and at NVISION in San Jose, CA.
Based in the heart of Silicon Valley, OCZ employs approximately 275 staff across offices in the USA (Sunnyvale and San Diego), Canada,
Holland and its manufacturing and logistics centre in Taiwan.
www.ocztechnology.com

This information is provided by RNS
The company news service from the London Stock Exchange

END

TSTKGGMLVLZGRZM

Ocz Technology (LSE:OCZ)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024