"Next year's average estimate for revenue is $646.4 million. The average EPS estimate is $0.12."
Just look at operating margins. Ugly. Would be surprised if they even make a profit for fiscal 2013. I'm still baffled as to what exactly their business strategy is assuming of course their ultimate goal is to become highly profitable. At the moment it ain't working.
They are spending it on marketing.
OCZ gross margin is low at about 22% and of that 80% is spent on sales & marketing.
It is not surprising that their market share and revenue are growing.
Probably typical strategy if you want to be bought-out.
Presumably, at some point they don't need to spend so much on marketing and can crank that % down and then make a profit.
Making a regular loss in the early phase has the advantage of not paying taxes.
Ok as long as they don't run out of cash.
On one hand you say " typical strategy if you want to be bought-out" and then on the other hand you say "Ok as long as they don't run out of cash". Why would an acquirer want a company that may have issues down the line with cash? The big picture looks ugly here.
"why doesn't any enterprise competitor consider OCZ a threat? "
You mean STEC who is slowly disappearing into obscurity or FIO who is constantly worrying about how they are supposedly better than OCZ? Please clarify.
How are your $5 puts doing btw?
FIO is STEC problem. OCZ is no one's problem as they don't compete with anyone in the enterpise market. NO ONE.
3rd rate me too products are not wanted in the market place.
next question loser?
I was just showing where 22% comes from.
The net income is negative as you point out. I don't think OCZ is trying to make profit right now. I think they think they will be better off borrowing and buying market share. Their retail pricing strategy seems very aggressive. Whether this turns out to be successful is anyone's guess.
When companies are small in a new market the net income isn't as good an indicator as when the market or company is well-established. So I am not too worried that the income is "ugly" as you put it. I guess I'd like to see how their revenue growth and gross margins compare to their competitors.
" show me where ocz has ever signed a big contract with microsoft. "
With anemic revenue of STEC and FIO, they don't need contracts that big to cause an impact. I heard FIO is now turning into a software company?