OCZ Technology Group Increases Sales but Misses Revenue Estimates

OCZ Technology Group (NAS: OCZ) reported earnings on July 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q1), OCZ Technology Group missed slightly on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.


Gross margin improved, operating margin shrank, and net margin grew.

Revenue details
OCZ Technology Group booked revenue of $113.6 million. The 11 analysts polled by S&P Capital IQ foresaw revenue of $115.6 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $73.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.17. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.09 for Q1 compared to -$0.20 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.0%, 500 basis points better than the prior-year quarter. Operating margin was -11.4%, 1,190 basis points worse than the prior-year quarter. Net margin was -5.5%, 680 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $134.3 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $646.4 million. The average EPS estimate is $0.12.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give OCZ Technology Group a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OCZ Technology Group is outperform, with an average price target of $11.95.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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