OCZ drops out of memory business to focus on SSDs


— 12:00 PM on January 12, 2011

So, that's why OCZ didn't have much in the way of new memory modules on display at CES this year. According to PC Perspective, the company has decided to exit the memory business entirely. Here's a snippet from the official press release:

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.

Having balanced this DRAM market weakness against the capital needs of the Company's growing SSD products, the board has determined that it is in the best interests of the stockholders to accelerate plans to discontinue its remaining DRAM module products by the end of its current fiscal year of February 28, 2011. Accordingly, our DRAM products are now expected to have minimal, if any, sales in the next fiscal year and beyond.

Over OCZ's last nine fiscal quarters, revenues from its memory business have declined more than 71%. The company's SSD revenues have grown by nearly a factor of 20 over the same time span. OCZ raked in over $41 million in SSD revenues in its last quarter but generated only $6.3 million from its memory department. If you compare those figures to just the previous quarter, revenues from solid-state drives doubled, while those from memory were cut in half.

Interestingly, OCZ's power supply business appears to be in decline, as well. PSU revenues have fallen from over $11 million a couple of years ago to $5.5 million for the last quarter. Don't expect OCZ and PC Power & Cooling PSUs to ride off into the sunset anytime soon, though. Vice President of Marketing and Communications Alex Mei told PC Perspective that SSDs and PSUs are both "strategic product categories" for OCZ.

Mei went on to say that OCZ will fully support customers who have purchased the company's memory modules. Lifetime warranties will be honored with replacement modules, credit toward other OCZ products, or refunds at "fair market value."

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