OCZ plans to file for bankruptcy

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OCZ plans to file for bankruptcy

Postby Stupify » Wed Nov 27, 2013 12:25 pm

http://finance.yahoo.com/news/ocz-techn ... 54007.html

Solid-state hard drive maker OCZ Technology Group Inc said it would file for bankruptcy and that it had received an offer from Toshiba Corp to buy its assets in a bankruptcy proceeding.

OCZ said on Wednesday it has "substantially completed" negotiations with Toshiba on an asset purchase agreement.

The company said it expected to file a petition for bankruptcy shortly after completing final documentation with Toshiba and Hercules Technology Growth Capital Inc, one of its lenders.

The company said it had received notices that Hercules had taken control of its depository accounts at Silicon Valley Bank and Wells Fargo Bank, National Association as it was not in compliance with a loan agreement.
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Re: OCZ plans to file for bankruptcy

Postby DIREWOLF75 » Wed Nov 27, 2013 2:25 pm

Really not surprising. With half their hardware having issues repeatedly, they just couldn´t keep going forever.
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Re: OCZ plans to file for bankruptcy

Postby Sauron_Daz » Wed Nov 27, 2013 2:55 pm

Yes, but still.. didn't know they did that bad..
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Re: OCZ plans to file for bankruptcy

Postby Celt » Wed Nov 27, 2013 3:53 pm

They had it coming . . .
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Re: OCZ plans to file for bankruptcy

Postby Sauron_Daz » Wed Nov 27, 2013 4:03 pm

Is this just about their HDD division? Or all of OCZ?
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Re: OCZ plans to file for bankruptcy

Postby DIREWOLF75 » Wed Nov 27, 2013 5:34 pm

Sauron_Daz wrote:Yes, but still.. didn't know they did that bad..

They´ve had trouble with their RAM almost from the start, their PSUs were extremely shifty for a while, better now but still far too bad overall, their SSDs have been those with the most trouble, and IIRC there was one or two models that were outright bad...

Even some of their USB memory sticks had quality issues! :roll:

I mean, that´s just not going to result in a company with a healthy profit over time.
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Re: OCZ plans to file for bankruptcy

Postby sortkwikle » Wed Nov 27, 2013 8:55 pm

Yea I still have some of their bad memory. and there was no support. I gave up trying to RMA it way to big a hassle.
I really don't know why their stuff was so expensive.
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Re: OCZ plans to file for bankruptcy

Postby Hammer_Time » Thu Nov 28, 2013 12:20 pm

Celt wrote:They had it coming . . .


Not surprised at all...

Yes they did, Celt has 2 bad OCZ "petrol" ( or were they "octane" , can't remember which one offhand but it was one or the other ) SSD's in a row, before he got his current Edit Corsair End Edit SSD drive which works perfectly of course...unreal...

After researching the web heavily a while ago for Celt on this issue, I discover that the majority of OCZ drives that were DOA or failed within a few months time were of course the cheaper models such as Petrol, and Octane... The Vertex 4 and Vector drives were fine for the most part. Early Vertex drives had firmware issues, such as Vertex 1 , 2 , and even 3 and the customers were the "Guinea Pigs" for these drives. However later Vertex and Vector drives were fine...but it was too late , their rep. was already damaged from selling the defective cheaper models.. They flooded the market with these, and they sold for the cheapest price and also OCZ offered these enormous MIR ( rebates ) that killed all their profit margins for the most part. They wanted to get their brand/name "out there", and they surely did accomplish that, but not in the way they wanted. They got a really bad rep for bad drives years ago and could not shake that off unfortunately.

Also their initial line of power supplies had a high failure rate and were built uber-cheaply ( by a 3rd party but still, there should be some kind of quality control on them ). Anways as others have said their psu's have improved over the years ( won't be DOA or blow up in a shower of sparks and take out your whole system ) but I still will never buy one...

I had some OCZ ram years ago DDR 400 Mhz in my old Athlon XP box and it worked fine...working as a tech I had lots of issues getting OCZ ram to work in Asus mobo's back then ( Asus was very picky about ram brand, typically did not like Kingston or OCZ brand ram at all, remember this was many years ago and does not apply to Asus boards today. Those of you who worked as pc tech or built your own systems back then will remember this I am sure... cause of great headaches... ).

Bye Bye OCZ. "How NOT to grow a business" should be a book written by top management there methinks. :P

http://www.anandtech.com/show/7549/ocz- ... the-assets

OCZ Files for Bankruptcy - Toshiba Offers to Buy the Assets

by Kristian Vättö on November 27, 2013 3:30 PM EST

OCZ has just issued a press release announcing their filing for bankruptcy, which was expected since Nasdaq had halted the trading of OCZ stock earlier today. OCZ has had financial issues for quite a long time and it was just a matter of time before the inevitable happened. While OCZ did try to change its course by reforming their product portfolio when Ryan Petersen, the former CEO of OCZ, stepped down, it seems that the efforts weren't enough to make the business profitable.

OCZ leaves behind a noticeable amount of assets, most importantly its engineering teams in California, South Korea and Great Britain thanks to the prior acquisitions of PLX and Indilinx. Toshiba has already offered to buy OCZ's assets but currently there is no certainty on whether the deal will be completed. Toshiba's offer is, as expected, subject to various conditions such as retention of the employees because it obviously makes no sense to buy the assets unless Toshiba also gets the immaterial capital that is integrated into the employees. We'll have to wait and see how the deal turns out but at this point I recommend not buying any OCZ products because there is no guarantee that warranties will be honored.

It's sad to see OCZ going because they've been one of the pioneers in the consumer SSD industry. They were one of the most active companies when we started to see the first consumer SSDs in 2008/2009 but OCZ lost a ton of sales once Samsung and other major OEMs began to take the consumer SSD market seriously. It's hard to say what ultimately killed OCZ without knowing their exact cost structure but I believe it was a combination of bad strategy (too many products and high production volumes) and engineering choices (low reliability) along with other things.

What happens to OCZ now depends on the completion of the Toshiba deal. Even if Toshiba completes the purchase of OCZ's assets, I doubt we'll see the OCZ brand anymore. OCZ's brand image took a hit with the low reliability, so I doubt Toshiba will see the OCZ brand adding any value to its products. I do hope that the deal goes through because OCZ's Indilinx Barefoot 3 platform has a lot of potential and it would be lamentable to see all that hard work to be flushed down the toilet.



Sad but they burned too many people for too many years and screwed themselves...

http://www.theinquirer.net/inquirer/new ... bankruptcy

OCZ is the latest SSD casualty as firm declares bankruptcy

Its finances weren't in a solid state


By Chris Merriman
Thu Nov 28 2013, 15:19

SOLID STATE DISK (SSD) drive maker OCZ has filed for bankruptcy.
The company had an investment loan from Hercules Technology Growth Capital (HTGC), which seized the company's bank accounts and forced the company into bankruptcy on Monday after OCZ defaulted on payments.
Under the terms of the loan, HTGC was entitled to seize assets including bank accounts in the event of default. It appears, however, that OCZ might have a white knight in Toshiba, which has made an offer to buy the company out of bankruptcy.
According to an announcement on the OCZ website, "The agreement is subject to various conditions: the preservation of the value of the business, including the retention of employees, the negotiation and execution of definitive documentation, the filing of bankruptcy petitions by the Company and certain of its subsidiaries."
This suggests that all parties hope to keep OCZ as a going concern, although whether the name would disappear in the longer term remains to be seen. There is also no news yet as to whether existing customer warranties are affected.
OCZ shares resumed trading on Wednesday, but dropped 80 percent, over and above the 69 percent of company value lost year to date. OCZ has not posted an operating profit in nine years.
OCZ is not alone in battling a shortage of NAND flash memory, which is not being produced at a high enough rate to match demand for SSD drives. Western Digital bought STEC last summer, the fruits of which can be seen in its new hybrid Black2 drive. µ


We won't get to see these OCZ reps at trade shows anymore... :cry:

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Re: OCZ plans to file for bankruptcy

Postby Celt » Fri Nov 29, 2013 12:50 am

That was one product that worked :twisted:

BTW I have a Corsair SSD now . . .
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Re: OCZ plans to file for bankruptcy

Postby Sauron_Daz » Fri Nov 29, 2013 4:20 am

Probably rebadged then :twisted:
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Re: OCZ plans to file for bankruptcy

Postby Hammer_Time » Fri Nov 29, 2013 6:50 am

Ah right, Corsair SSD, not Samsung, sorry my bad... Corsair GT iirc right? :D
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Re: OCZ plans to file for bankruptcy

Postby Stupify » Fri Nov 29, 2013 6:58 am

I am grateful that OCZ existed in the SSD market as if it wasn't for them the prices of SSDs would still have been sky-high and not plummeted at the pace it did.
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Re: OCZ plans to file for bankruptcy

Postby DIREWOLF75 » Fri Nov 29, 2013 8:25 am

Stupify wrote:I am grateful that OCZ existed in the SSD market as if it wasn't for them the prices of SSDs would still have been sky-high and not plummeted at the pace it did.

Probably true. But would have been better if they had not also set the standard for what´s unacceptable in regards to quality so low.
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Re: OCZ plans to file for bankruptcy

Postby Stupify » Fri Nov 29, 2013 8:34 am

but then if they hadn't done that their drives would be of quality and hence lower risks of failure. With higher demand of consumers for their drives they would not have to drop the prices to attract consumers and so none of the other manufacturers would be forced to be within few $ of OCZ to ensure their prices are competitive. It's like American cars versus Japanese cars, Japanese carmakers cannot have their prices too high in comparisons to American lower quality cars else they lose their competitive edge, even after taking duties and currency fluctuations into considerations.
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Re: OCZ plans to file for bankruptcy

Postby Hammer_Time » Fri Nov 29, 2013 2:09 pm

Exactly true Stupe!!
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Re: OCZ plans to file for bankruptcy

Postby Sauron_Daz » Sat Nov 30, 2013 1:17 am

American cars have lower quality then Japanese??
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Re: OCZ plans to file for bankruptcy

Postby DIREWOLF75 » Sat Nov 30, 2013 3:10 am

Sauron_Daz wrote:American cars have lower quality then Japanese??

They´re catching up. Maybe.

Japanese carmakers started introducing a bunch of improvements in manufacture and quality control in the 70s (IIRC), which US makers rejected as "useless" and "far too expensive"

It paid off.

So on your basic question the answer is mostly a yes. 10-15 years ago it was a firm "yes" where you could easily find hyper expensive US luxury cars with lower quality than a Japanese ultracheap compact.
Guess one of the reasons why "big 3" almost bankrupted themselves in recent years...
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Re: OCZ plans to file for bankruptcy

Postby Hammer_Time » Sat Nov 30, 2013 12:52 pm

Sauron_Daz wrote:American cars have lower quality then Japanese??


Not anymore, decades ago, yes, very true... they have had to improve to compete of course.
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Re: OCZ plans to file for bankruptcy

Postby DIREWOLF75 » Sat Nov 30, 2013 2:45 pm

Hammer_Time wrote:
Sauron_Daz wrote:American cars have lower quality then Japanese??


Not anymore, decades ago, yes, very true... they have had to improve to compete of course.


"decades ago"(60s), US cars were the better ones. :mrgreen:
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Re: OCZ plans to file for bankruptcy

Postby Hammer_Time » Sat Nov 30, 2013 5:52 pm

:lol: I dunno, I would even take a vintage 60's Datsun ( Nissan ) over any American car of the period...my friend had one in high school and try as we might we just could not kill it. I think the 80's were the worst for American car quality vs Japanese car quality. Specifically, I am talking about those godawful death traps known as Chrysler "Reliant K" cars... damn they were the worst garabage to ever fall off an assembly line.. the Ford Pinto in the 70's was no raving hell either, gas tanks in the rear prone to exploding or catching on fire in any rear-end accidents, but the 80's GM/Chrysler products ( Ford too excepting their upper line models ) were the worst trash to ever hit the road over here in North America imho ( Korean imports excepted of course, same with Russian Ladas lol! ). Our family owned a 1978 Chevrolet "Chevette" ( yes, the snot-green color model ) with little 4 cylinder automatic and even though it was not very smooth, it was actually fairly reliable and would not break even after much punishment was given to it ( trust me you don't want to know the details! :twisted: ). I know that contradicts my theory but there are always exceptions. I am only talking about Japanese built car quality vs American made/built cars back in the 70's and 80's here specifically. I am sure Clone ( who works for Chrysler and they do make great products these days after being restructured after the bailouts ) can confirm this... :wink:
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