So even though the last update was heralded by some as a huge positive, others have pointed to their liquidity as a major concern. Of these, the most alarming and almost straggle hold like to me would be around buying power. With a net cash position of $2 million, dwindling borrowing power from WF, and the continued expected loss from operations, what would one anticipate OCZ's ability is to buy parts and supplies for their products at a good price? I would think their vendors would also have them on a short leash as far as accounts payable. Couple this with their inability to access cash when they need it and where does that put us as far as the promised future growth numbers RS put out there in the same release? Is anyone really buying these numbers?
You can never deny numbers such as those that is true. They positioned AR as 35 million and AP as 30 million and I do not know if that is total or YTD but you would assume they are saying they have an additional 4 or 5 million in AR. The debt covenants say 10 million and they said 9 million so that makes you wonder. With lower sales projections and different strategy to a degree you would think inventory would be lower. Essentially this company has alot of information to give out and quit spinning everything. This is a hugh year to mess up but it could be the best year because HDD are projected to decrease by 10 to 15% and SSD growth is going to 20% and above but the whole problem which I think FIO has really verified is that this companies will not be able to compete on the service sector because of the likes of EMC, IBM and who knows who else one.