OCZ discontinues low-end memory

OCZ, the once overclocking memory company, spent most of its energy on SSDs in the past two years. The richness of its SSD product line is unrivalled throughout the world. Today, OCZ announced a new strategic decision that will completely shut down mainstream low-margin memory products, reduce the size of its memory business, and increase profitability.

OCZ stated that after experiencing the rapid development of the company's SSD business in the past two years, the company's board of directors unanimously decided that resources should be adjusted to focus on high-growth SSD business and reduce the non-core low-run product line size. Therefore, OCZ will phase out production of low-end mainstream DRAM by the end of November this year. The memory business will only retain high-margin high-performance products.

According to OCZ, its low-end mainstream memory accounted for about 70% of the company's sales revenue from its memory business, but its gross profit margin has been less than 3% in the past year and a half. After discontinuing production of low-end memory, the company’s expected revenue for the current fiscal year will be reduced from US$215 million to US$215 million to US$1.65 to US$180 million, but it is expected that the profit will increase.

While announcing the adjustment of its memory business strategy, OCZ’s new main business SSD has also made gains. The company announced that it has been selected as a supplier of supercomputers and workstations to sgi, and its Intrepid, Deneva and Z-Drive R2 series of enterprise-class SSDs will be used in SGI's Octane III desktop supercomputers, rack servers, and InfiniteStorage storage systems. .