OCZ filing for bankruptcy, assets could go to Toshiba

The writing has been on the wall for a while, and the axe has finally swung. OCZ is filing for bankruptcy. The SSD maker failed to comply with the terms of its loan agreement with Hercules Technology Growth Capital, which has “disbursed the cash in [OCZ’s] respective accounts to accounts under the control of Hercules.”

According to the press release posted on Market Watch, Toshiba has made an offer to acquire “substantially all of [OCZ’s] assets in a bankruptcy proceeding.” The firms seem to have agreed on a deal, but it’s subject to numerous conditions, including Toshiba’s offer being accepted by the bankruptcy court as the “highest and best offer under the circumstances.” OCZ will formally file for bankruptcy after working out “final documentation” with Toshiba and Hercules. If the Toshiba deal falls through, OCZ will continue with bankruptcy proceedings and liquidate its assets. It’s unclear whether any other suitors have an interest in purchasing the remnants of OCZ.

Although the company has a checkered past, OCZ deserves some credit for helping to popularize SSDs. Its aggressive discounting practices touched off a price war that delivered some fantastic deals, especially last year. However, those discounts probably weren’t good for the company’s bottom line. OCZ is also responsible for the mistrust some folks have of SSDs. Early problems with the Vertex 2 and other drives didn’t inspire a lot of confidence.

Surprisingly, OCZ was named to Deloitte’s list of Technology Fast 500 (PDF) companies just last week. That list ranks the “fastest growing technology, media, telecommunications, life sciences, and clean technology companies” in North America, but it’s based on revenue growth between 2008 and 2012. As Seeking Alpha points out, OCZ financial statements during that period weren’t entirely accurate.

Comments closed
    • madgun
    • 6 years ago

    I feel sorry for PC Power and Cooling. Really loved their Turbo Cool 510 and the 750 Silencer.

      • JustAnEngineer
      • 6 years ago

      My old [url=https://techreport.com/review/13271/eleven-enthusiast-power-supplies-compared/14<]PC Power & Cooling Silencer 750CF[/url<] is still going strong, 4½ years on.

    • tygrus
    • 6 years ago

    I was going to say that the “fastest growing” award would greatly increase the risk of bankruptcy but..
    OCZ are #445 on the list so they are a long way from the top.

    • UnfriendlyFire
    • 6 years ago

    One drawback with OCZ disappearing, is one less major competitor…

    And that makes price fixing all the easier.

    “Hey, let’s start some fires to cover our tracks…”

    • PrincipalSkinner
    • 6 years ago

    Goodbye.
    [url<]http://www.youtube.com/watch?v=xdLWbG0YKiA[/url<]

    • Generic
    • 6 years ago

    ♪ So long. Farewell. Auf Wiedersehen. Goodbye. ♫

    • Rza79
    • 6 years ago

    After the 10 years or so I’m confronted with OCZ, it’s been highly negative. I’ve had the most failures of any brand from OCZ and that’s in anything they’ve ever made. Memory, PSU’s & SSD’s. After their memory fiasco, I stopped with selling OCZ. Then the PSU’s came. Much better but still having too many failures for my taste. Then the SSD’s … oh lord. Admittedly, I only used the cheap ones (Agility, …) but an higher than 50% failure rate is just ridiculous. Some series (like the Octane) had to be send back 100% because they were just broken by design. Just last night I was struggling with a machine and the problem turned out to be an OCZ Octane S2.
    I couldn’t be more happy to see them go. I just hope Toshiba picks up the controller tech.

      • HisDivineOrder
      • 6 years ago

      Now once Sandforce is retired by LSI, perhaps we’ll have only reliable SSD’s on the market…

        • just brew it!
        • 6 years ago

        I’ve not had any issues with the Sandforce-based SSD in my workstation at the office. It has seen some fairly heavy use too.

          • balanarahul
          • 6 years ago

          LSI’s third gen Sandforce Controllee are going to be really reliable. LSI knows that reliability, lack of 256-bit encryption and lack of completely functioning TRIM were HUGE drawbacks of the 1st and 2nd gen controllers. They won’t commit the same mistake again.

          But most of all, I don’t think they will let Samsung have a monopoly on the SSD market.

      • albundy
      • 6 years ago

      my 650w 80+ ocz psu failed and they immediately replaced it for free and paid shipping costs. if i went with a similarly priced psu, it probably would have been a generic brand where i would have been screwed on warranty.

      on the other hand, my 6 year old ocz platinum ram DDR3-1600 works really well. never had a problem.

      and i really hope toshiba doesnt pick up their controller tech. their current ssds work just fine. no need to bring themselves down.

    • albundy
    • 6 years ago

    Great customer service and great products, except for SSDs. I guess my ocz ram doesnt have lifetime warranty anymore.

      • WaltC
      • 6 years ago

      Good point–I had forgotten that. This is a prime example of why it’s best to steer clear of “lifetime warranties” because the lifetime they are actually speaking of is the lifetime of the company–not the product…;) And usually, after the word “lifetime” is invoked, they are already preparing to shut down the ventilator and pull the plug. Much better to stick with large, established 1st-tier company products with 3-5 year warranties as those warranties actually have meaning.

      From the start, OCZ advertising seemed sort of sleazy to me–unappealing to me personally–so I never got bitten by that particular bug, thankfully. But other bugs have bitten me in the past, oh, yes….;)

        • ludi
        • 6 years ago

        In most computing products, 3-5 years pretty much IS a lifetime warranty.

    • Bensam123
    • 6 years ago

    This is a shame. While OCZ has had some issues in the past, in general they’ve strived to push not only SSDs forward, but also things like Power Supplies. They really did push their company hard. I can’t imagine that they were horribly unprofitable given their product lineup, they must’ve just been skirting by and it wasn’t enough for their investors so they decided to dry up their funding.

    “The SSD maker failed to comply with the terms of its loan agreement with Hercules Technology Growth Capital…” could mean anything from not meeting growth requirements, to being completely unprofitable.

    I really hope Toshiba buys up the whole thing and re-funds them. If OCZ drops out of the SSD race, prices may start climbing back up, which isn’t good for anyone. OCZ has also been releasing some of their own technology to the SSD stream too adding diversity, which has been good (indilinx).

    The ‘watch it burn’ and ‘OCZ never did anything good’ statements from some people are very disheartening. I don’t think OCZ deserves to go under for all they’ve done. Their are a dozen or so other manufacturers that deserve that more.

      • Diplomacy42
      • 6 years ago

      i’ll tell you what it actually means: OCZ was in debt, and they missed a several million dollar loan payment.

    • Deo Domuique
    • 6 years ago

    At last, after 7-10 years, even Seagate and/or WD will be absorbed by Intel or Samsung. One or even both of course can survive, but you never know… HDD eventually will come to an end, too.

    • HisDivineOrder
    • 6 years ago

    The real shame of this whole mess is the end of PC Power & Cooling and that happened a while back.

    Everything else about OCZ has been one con after another, one bad product after another, and a small group of power users wishing desperately that a high performance product would be more value priced than the only decent quality game in town (ie., Intel). From there, OCZ spun it into a high dollar business… until others who were helping them do it saw they could do it and cheaper, too.

    Suddenly, OCZ had no leg to stand on.

    But it’s a damn shame about PC Power & Cooling being tied to these nitwits and letting them basically drown the quality goods they used to sell with all the crap that OCZ put out with the Silencer name…

      • davidbowser
      • 6 years ago

      I have several of their PSUs in my builds and I always liked the quality.

      I never did get their SSDs though. I admit that I was a bit spooked by their firmware issues. I got the same way with Seagate when they had their HDD issues a few years back.

      • PainIs4ThaWeak1
      • 6 years ago

      ^ :yeahthat:

      Both of my PCs still have PCP&C power supplies. (Silencer 750 “Quad” and Silencer 910)

      Call me a “fan boy”, but their PSUs were pretty much the best thing around at the time …until OCZ took the helm. And boy did they ever “take the helm” … drove it right into the ground, obviously.

      No sympathy for OCZ here [except for its employees who don’t get picked up by a buyer].
      (Even though I have three of their SSDs – Why it took me three times to realize that I dislike them most for their method of firmware updates, I don’t know.)

        • The Swamp
        • 6 years ago

        Back in the day, before OCZ bought out PCP&C, their power supplies were the best you could get. They were the gold standard of PSUs. I remember being horrified when I heard they had been bought out by OCZ. Perhaps the original owners of PCP&C can make an offer to buy back the product line and bring back the name. I only have one PSU from them, the 510, but it’s from before OCZ took over. I wish I had bought more.

          • HisDivineOrder
          • 6 years ago

          The only thing that kept PC Power & Cooling from greatness was their stubborn insistence not to change their fan layout and take on modular PSU’s.

          I get not wanting to do it and I get why they wouldn’t change their designs on their existing PSU’s, but they didn’t have to go as hard as OCZ did in screwing up the brand in order to meet people halfway in the modern design school of thought. They could have just introduced new lines and see if people liked them.

          Once OCZ had them, they basically rebranded their PSU’s with the PC P&C branding, which meant it was the same OCZ garbage PSU’s.

          That’s why I think PC P&C was dead long before now. It’s still a damn shame. I think Indilinx is probably a bargain price though given what OCZ will sell it for…

            • Krogoth
            • 6 years ago

            PC P&C became a brand for OCZ after the buyout. The original house and factory are still there. OCZ only handled the Retail and Distribution end. The Silencer line-up is pretty much the same expect PC P&C went with modular stuff (influenced by OCZ), but their units go through more Q&A and command a higher price than their OCZ counterparts. The Turbo-Cools are still the same old units (reliable, build-like a rock and loud).

            I think what will happen is PC P&C will either become independent again or get bought up by somebody else.

            FYI, most PSU manufacturers are actually ODMs. They usually rebrand units from (Seasonic, Topower, FSP, CWT etc), but some of them do their own custom work on fans and tweaking the pots. They sometimes put in high-quality components.

            In my experience, OCZ PSUs were pretty solid. To be honest though, any decent PSU works as long it isn’t an off-shelf, generic unit. The more powerful units just are overengineered with oversized heatsinks and capacitors. The server-grade stuff is rated for operating under 50C chassis temperate and have redundancy.

    • ronch
    • 6 years ago

    Wow. And just when we thought they were trying to get their act together and make a big comeback.

    • tootercomputer
    • 6 years ago

    All things considered, good riddance.

      • Srsly_Bro
      • 6 years ago

      My thoughts exactly. It’s about time the market did away with them.

      • albundy
      • 6 years ago

      yay! higher prices!

        • travbrad
        • 6 years ago

        yay! less failures!

          • NeelyCam
          • 6 years ago

          A tricky balance to maintain..

      • tootercomputer
      • 6 years ago

      I do feel badly about PC Power and Cooling. They made great products. I remember in 2007 I was interested in one of their PSUs. It was great, I called them with a question and quickly was talking to a staff member who answered my questions. She then directed me to the refurbs they had on hand, with their full warranty at a substantial discount. It was a Silencer 600W, and I still have it running in a SB system I built a couple of years ago. Farewell PC Power and Cooling. I don’t feel good riddance about them.

      • sjl
      • 6 years ago

      Ding, dong, the witch is dead …

    • Chrispy_
    • 6 years ago

    Yay; Indilinx-powered Toshiba drives.

    Toshiba NAND is good and healthy competition to Samsung/Micron but Toshiba always use weird controllers – now they’ll have real ones.

      • anotherengineer
      • 6 years ago

      But if they work well then who cares?

      Also I think they use some modified Marvell Controllers.

      [url<]http://www.techpowerup.com/reviews/Toshiba/THNSNH256GCST_256_GB/[/url<] [url<]http://www.techpowerup.com/reviews/Toshiba/THNSNH512GCST_512_GB/[/url<] Corsair Neutron also uses a "weird" Link A Media controller.

        • Chrispy_
        • 6 years ago

        The only two Tosh SSD’s I’ve used were like some of the old Kingston/JMicron combos: Okay on read and write speeds, but low IOPS.

        Indilinx worked out how to do high speeds and IOPS.

    • Star Brood
    • 6 years ago

    SSD’s won’t gain the market share they need to be profitable until they’re cheaper. Yes, you can shrink the process node to make them cheaper, but lose durability that way. One step forward, one step back.

    The “writing on the wall” for the SSD market in [i<]general[/i<] has been there for a while. OCZ's biggest mistake was that they were too heavily invested in the technology and that they were taking too much of a loss to get their coveted market share. (The second mistake was that their products were unreliable, but that doesn't speak for the market as a whole). OCZ makes some pretty good PSU's. While it isn't mentioned in the article, I'm curious to see if those have a future. Whatever the future of OCZ may be, patents willing we will see better technology than SSD's in the near future as SSD's are a dead end.

      • Ratfish
      • 6 years ago

      Do you mean we’re moving to pcie or SSDs altogether are going out?

        • Star Brood
        • 6 years ago

        ReRAM is one of the contenders for totally deprecating the technology. There are other types of RAM in the works that intend to the same – and many of them are on the horizon.

          • Pwnstar
          • 6 years ago

          But that’s just it: They are on the horizon. Who knows what will be successful?

          Plus, you keep saying SSD when you really mean Flash NAND. ReRAM will form SSDs as well.

            • Star Brood
            • 6 years ago

            I see what you guys are saying, now. Yes I did mean flash NAND. I don’t think of ReRAM like an SSD, I see it more like non-volatile RAM. Next time I’ll make sure I’m more clear with what I’m saying.

          • bwcbiz
          • 6 years ago

          So what you’re really saying is that flash-NAND based storage will fade, not that solid-state storage/memory will cease to exist. ReRAM is a solid-state technology just like TTL and CMOS – for those of you old enough to have heard of TTL.

            • Pwnstar
            • 6 years ago

            Why was I down-thumbed for saying the same thing you did? =P

            • Diplomacy42
            • 6 years ago

            neediness isn’t very attractive, pwnsy

            • Pwnstar
            • 6 years ago

            My point remains, though.

            • Diplomacy42
            • 6 years ago

            So needy.

      • Srsly_Bro
      • 6 years ago

      I wasn’t aware OCZ made any reliable products. My experience with them has been less than satisfactory.

      • f0d
      • 6 years ago

      “OCZ makes some pretty good PSU’s.”
      i have had better experience with their SSD’s than their PSU’s

      i had 2 gamextreme PS’s die on me within 6 months then went to thermaltake/seasonic without issue (both are still going strong years later)

      i still have my vertex 2 here chugging along without issues (although i dont trust it with all the issues others have had im still going to use until it dies)

      • smilingcrow
      • 6 years ago

      “OCZ makes some pretty good PSUs.”

      Do they actually make any PSUs as most companies use ODMs for that purpose.

        • Srsly_Bro
        • 6 years ago

        The use an ODM, and it’s not an upper tier ODM.

        • entropy13
        • 6 years ago

        OEMs they used in their PSUs:

        FSP, HEC, Sirtec, Greatwall, CWT, Impervio (by Etasis), Topower

      • tanker27
      • 6 years ago

      SSD’s are a dead end……..um yeah right. /eye roll

    • squeeb
    • 6 years ago

    Interesting. Didn’t know they were in trouble..my rig still has one of their PSUs…

      • MadManOriginal
      • 6 years ago

      They’ve had financial troubles for a while, and were even running afoul of the SEC. It still seems sudden, but I’m not terribly surprised.

    • smilingcrow
    • 6 years ago

    I said I’d never buy another of their products so will I need to boycott Toshiba now not that it would be difficult.

    • ssidbroadcast
    • 6 years ago

    Maybe they’ll start making video cards with the [i<]Hercules[/i<] brand again.

    • yokem55
    • 6 years ago

    So this probably means their warranties are worthless now?

      • nanoflower
      • 6 years ago

      Depends on what sort of deal the purchasing company signs. In some cases they will honor warranties and other debts, but not all.

      • Freon
      • 6 years ago

      [url<]https://www.youtube.com/watch?v=mEB7WbTTlu4[/url<]

    • balanarahul
    • 6 years ago

    Toahiba’s experience in building and validating SSDs + Toshiba owns a foundry + OCZ’s innovative employees = Finally. Someone who can compete with Samsung.

    Btw, any announcements about Phison PCIe controller based TLC SSDs? My confidence in TLC has grown after seeing Samsung’s efforts. But I don’t like either Turbowrite or RAPID.

    [b<]Edit:[/b<] Before anyone says 'Good Riddance. OCZ won't be missed.' Think again. OCZ is partially the reason we have such good SSD's today. They were the first one to push for random transfer speeds. They were responsible for pushing Sandforce to consumers and bringing on the speed revolution. And once again they are the first one to advertise and promote Sustained/Steady State Transfer Speeds with the Vector 150 in the enthusiast market. Intel being the first in enterprise space. Their controller, reliability, customer service etc. may be junk. But they are one of the most innovative companies I have ever seen. [i<] If a rich player like Toshiba acquires OCZ's SSD related resources and preserves the innovative employees, we are in for a real treat. [/i<] I do hope their Power Supply division goes to Seasonic or Flextronics or Corsair or some other reputed PSU company.

      • jjj
      • 6 years ago

      Not really.
      Marvell has a solid controller,used by many.
      LSI bought SandForce and they are trying to compete with Marvell just like they do in HDD SoCs.
      Sandisk is Toshiba’s partner in the NAND JV and they invested quite a lot in SSD lately and making plenty of money out of it so they are plenty serious and nobody knows NAND better than them.
      Hynix has it’s own controller since they bought LAMD.
      WD and Seagate are just starting to push.
      Micron cares quite a lot about SSD.
      So there is plenty of serious competition already.
      Besides , now it’s time to focus on 3D NAND , in the next few years some of the players might be left behind and others might rise because of it. Hard to say , from where we stand , who’s gonna have decent controllers.

        • balanarahul
        • 6 years ago

        Hynix is a joke. I have never seen their NAND being used. The exception being Corsair Neutron 2013 Edition.

        Marvell is used by many. Thats the problem. You don’t have a completely proprietary solution if you don’t own the controller.

        Micron doesn’t have their own controller for the consumer market.

        WD and Seagate could fall. Just like OCZ.

      • ikjadoon
      • 6 years ago

      Why don’t you like RAPID? I get how Turbowrite in the rare instance lose your data, but RAPID seems to be all benefits?

      It’s like a RAM disk cache, right?

        • balanarahul
        • 6 years ago

        RAM is volatile memory. Data gets lost the moment power runs out. There is a huge risk of losing data if you use RAPID. Thats why I hate it.

        Turbowrite uses a portion of NAND/Flash as cache, so it keeps the data even during power loss. I like it because it provides great write speeds for very short amount of time. Roughly 5 to 6 seconds. The data is than flushed out to rest of tje NAND/Flash. So you sort have a fast drive always.

        But since all writes hit that portion of NAND/Flash first, it will wear out extremely quickly within a few months of normal use. After that you risk losing/corrupting data or get much lower than advertised write speeds. Both situations are bad. Thats why I hate it.

      • Freon
      • 6 years ago

      What about Intel 335? They look pretty good.

      • indeego
      • 6 years ago

      Toshiba seems like it’s always been a third- or fourth- tier player in almost every market they’ve been in. I doubt buying assets/IP from a last-in-field will help them all that much.

    • jjj
    • 6 years ago

    Hope PCP&C doesn’t end up being killed off

      • ikjadoon
      • 6 years ago

      Oh, jeez, I forgot OCZ bought them.

      They have pretty quiet, though. Their flagship PSU, the Turbo-Cool 1200, brags how it’s compatible with GTX 280 Tri-SLI (http://www.pcpower.com/power-supply/turbo-cool-1200.html).

        • Farting Bob
        • 6 years ago

        Yea the brand has pretty much been killed off by OCZ and their talent was working on OCZ PSU’s for a while. Those teams that made good stuff will find their way into another company. Theres plenty of very good PSU’s out there these days, so the loss of PCP&P isn’t as bad as it would have been 5 years ago.

    • Sunburn74
    • 6 years ago

    Does this mean SSD prices will be rising?

      • Bauxite
      • 6 years ago

      [quote<]Does this mean overall SSD quality will improve?[/quote<] FTFY

        • DarkUltra
        • 6 years ago

        Cheeky bastard. (guess where I got this from!)

    • wrevilo
    • 6 years ago

    Sadly I think you really need to be manufacturing NAND to survive in the SSD game. That’s why OCZ left the RAM game I believe. Looks like the margins just aren’t there even with having a stake in your own controller.

      • chuckula
      • 6 years ago

      [quote<]o survive in the SSD game. [/quote<] In the game of SSDs, you either win or you get sold off during bankruptcy liquidation.

        • Pwnstar
        • 6 years ago

        Game of SSDs.

      • travbrad
      • 6 years ago

      A lot of OCZ’s problem was also their reputation for having very unreliable SSDs. Their recent products have been much better, but it’s hard to shake off that bad reputation. If they priced their SSDs the same as Crucial, Samsung, Intel, etc hardly anyone would buy them. So they basically had to undercut everyone eating up all of their profit margin.

    • SnowboardingTobi
    • 6 years ago

    Well that sucks for those that work there. =/ Not a way to start out Thanksgiving…

    • 5150
    • 6 years ago

    I for one am shocked, SHOCKED, by this news!

      • NeoForever
      • 6 years ago

      They went and copied our iPhone!

      • smilingcrow
      • 6 years ago

      YES, why has it taken so long for them to be rumbled!

    • chuckula
    • 6 years ago

    Begun the inevitable market consolidation has.

      • Wirko
      • 6 years ago

      And when only two or three manufacturers remain, there will be a big flood, fire, or earthquake.

        • [TR]
        • 6 years ago

        It will go earthquake -> fire -> flood.
        Then the Nuclear Plant where the SSD factory is housed (just because they can) will begin leaking radiation that will interact with the NAND to disturb the Earth’s magnetic field, activating an ancient stone intergalactic beacon that will summon our Ancient Alien Overlords. When they arrive they will once again teach us the true ways of storing information with the ultimate density: stone carvings.

          • Amazing Mr. X
          • 6 years ago

          All of which will somehow drive up the price of RAM another 10 to 15%.

            • entropy13
            • 6 years ago

            But the aliens are going to replace everything with stone carvings anyway, so it’s kind of a moot point then.

            • Stickmansam
            • 6 years ago

            My bookmarks rising 10-15% in price is still a big bummer though

          • Wirko
          • 6 years ago

          Nah, don’t be so pessimistic. These guys delivered the transistor to us (to Roswell, that is) just months before we apparently invented it. When they come again, we won’t let them leave until they give us the recipe for Kryptonite.

          If it’s improbable enough so it’s bound to happen.

          • Haserath
          • 6 years ago

          Stonehenge stores the entirety of the past, present, and future of Earth? I knew it!

            • Meadows
            • 6 years ago

            [url<]https://www.youtube.com/watch?v=mbyzgeee2mg[/url<]

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