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OCZ Vertex 3 Pro
Strong SSD revenues prompt OCZ to quickly abandon DRAM products

When it comes to performance upgrades for computing systems, enthusiasts have been moving in large numbers to solid state drives. Upgrading a system from an "archaic" hard disk drive (HDD) to a solid state drive (SSD) can make an immediate difference in boot speeds, application launch times, and overall system performance.

OCZ Technology, once primarily known for its DRAM/memory products, has in recent years expanded its product portfolio to include cooling products and power supplies. Another product category that has seen large gains for the company has been the SSD market.

OCZ Technology saw a 325 percent increase in revenues from its SSD business for fiscal Q3 2011 versus the previous year. Q3 2011 SSD revenues were also up 105 percent compared to Q2 2011. 

"SSD revenue accounted for 78% of our revenue and just by itself exceeds our historical quarterly revenue totals across all categories, thus reinforcing our decision to discontinue our remaining DRAM products," said OCZ Technology CEO Ryan Peterson. 

Thanks to the strong performance of its SSD portfolio, and the overall weakness in the global DRAM market, OCZ is accelerating its plans to exit the DRAM market.

"We still have some commitment on the memory side moving forward and will continue with certain SKUs for a period of time, but the amount of memory sales are going to be non-material to our overall business," said OCZ CMO Alex Mei in a phone interview with DailyTech. "Memory sales continues to shrink as an overall portion of our business to the point where it was not as significant."

OCZ showcased its SSD prowess last week with the announcement of the Vertex 3 Pro SSD family. The new drives feature a SandForce SF-2582 SATA III/6Gbps compliant controller that provides maximum read speeds of 550MB/sec and maximum write speeds of 525MB/sec.

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RE: Holy Crap!
By vol7ron on 1/10/2011 10:47:05 PM , Rating: 2
It might be equally cutthroat, but it is still new and there are many ways to refine it. It's probably the best opportunity any company has had in a number of years. It might not be smart to do away with another market entirely, but it's probably very lucrative to get out in front in SSD market, especially since SSDs will be used in mobile devices, which is really the market of today and tomorrow.

There are more mobile devices then desktops and they sell at a higher profit margin. From a company standpoint, why wouldn't you try to get in on that? It's the goldrush of the millenium.

RE: Holy Crap!
By azander on 1/11/2011 8:42:23 PM , Rating: 2
Thanks for the comments both AstroCreep and vol7ron, all good points. SSD’s have been replacing our memory segment for quite some time now and we have had a lot of growth both on the consumer and enterprise side. That said I totally hear you and one thing I always say is that memory is one of the reasons why we are a leader in the space currently, it’s a major part of why we had the ability to jump into this arena so quickly. There are many synergies between the product lines from a procurement, design and manufacturing standpoint. At the end of the day we feel we can add more value to consumers in the SSD segment and you can see we are innovating much like we did when we started producing memory. With products like the RevoDrive and IBIS (HSDL) we are coming out with solutions that really push the storage envelope and we hope to continue that trend.

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