OCZ Stock Tumbles, but CEO Ryan Peterson Buys 100,000 More Shares
OCZ Technology took a dive on the stock London Stock Exchange today as share prices were down over 51% on news that its full-year pretax will be significantly below market expectations. OCZ did say they they were confident of strong trading in the next three months and added that chief executive Ryan Petersen has lifted his stake in the company to 23.46 pct with the purchase of 100,000 shares or 0.19 pct in the company at 68 pence each. Shares of the company are at 65.5 pence at the time of writing.
The cost of DRAM influences pricing of the Groups memory products. Significant falls in the DRAM spot market, with the resulting reduction in the average selling price (ASP) of DRAM memory products, have resulted in lower than expected revenues, gross product margins and profits. The average ASP per unit was reduced by approximately 42 per cent. from the first quarter to the third quarter of the calendar year. From an average ASP per unit of $125 in the first quarter of the calendar year, the Group experienced an ASP of $57 in September, which recovered to $68 in October. The Board is not expecting any significant increase in memory ASPs in the short term.
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