OCZ Technology Group has released its financial results for the second quarter of fiscal 2014 showing decline in revenue and gross margin due to a difficult quarter in flash market.

The highlights of the financial Q4 2014 report from OCZ, in addition to a decline in revenue and gross margins, were an announced agreement in principle to settle the consolidated shareholder class action litigation, announcement of the upcoming Aeon series 3.5-inch SSD with non-volatile memory (NVM), unveiling of the smaller form factor Z-Drive R4 PCIe 4500 SSD as well as introduction of the new enterprise SATA III SSDs based on 19 nm NAND flash process geometry to the popular Deneva 2 Series.

The Q2 2014 highlights for OCZ included announcement of the general availability of the award winning ZD-XL SQL Accelerator, expansion of the partnership with SED International, raising of $13.1 million in a private placement, partnership with TechData and Joint Harvest as well as an agreement with shareholders that was glooming over OCZ for quite some time.

As far as the financial results are concerned, OCZ reported revenue of US $33.5 million which is way down from US $55.3 million in the last quarter and US $88.6 million in the same quarter last year. Gross margin dropped down to 4.2% which is also concerning considering the 14.7 percent in last quarter. Reported operating expenses were up to US $20.5 million.

According to Ralp Schmitt, CEO of OCZ Technology, Revenue and gross margins declined in the second quarter as revenue for our client SSD products continued to be impacted by our challenges in procuring flash. Revenue from our enterprise solutions accounted for roughly half of our SSD revenue, compared to about 60% in the first quarter, as a major data center customer completed its installation during the quarter. This has been a difficult quarter as demand for our products continues to be greater than our ability to supply, given our capital constraints."



Source: OCZ.com.