OCZ off of life support but not healthy. Will need infusion of Cash
The company is losing $35 to $45M per quarter and break even, $100M-110M, does not look possible for the first half of FY 2014 and maybe not the second half either. A big chunk of the loses are write-downs/write offs but obviously there is still bleeding going on. Falling below $2 is a deffinite posibility with big loses in the 2Nd & 3Rd Q's of 2013 and $20-25M in write-offs for Q4 of 2013 and Q1 of 2014.
How much dilution and when is the question not if.
They are not losing 35 to 45 million per quarter. They were apparently doing something with their inventory to mislead the growth numbers. Essentially they were losing about 8 to 15 a quarter and somekind of stupid inventory stuff. They probably are going back to the cost structure around August of 2011.
hokie they never been profitable. then add in the R&D spending you need to be competitive in this sector, they will lose that much. this why they trimming things down to 8 lines, want to bet you hear of another massive layoff within two weeks or so? i'd say they reduce headcount by 50% this in itself will save ocz a lot of cash but limits opportunities.
they a good year and half away for any type of solid PCIe solution, SAS/SATA are not money makers, consumer lines need a OEM. best they can do is get as lean as possible and hope for the best in that time.
wrm all you need to do is look at how many shares they have registered to sell. from past prospectus you can see they have 5,218,395 Shares of Common Stock in one and 7,139,960 Shares of Common Stock in the other. they also have the ability to sell warrants under both prospectuses.
so they could sell 12,358,355 if they ever file! although i am not sure if these are immune to sec rules of selling shares into a dark company since they have a prior registration that is current for this year.
I believe they will file on or about 1/28/2013 to put fileings current. If they miss that is a whole different can of worms that places Indilinx in the can as worm food. They have worn out their welcome in the secondary market with the exception of PIPES and with continuing loses going forward with a hope for a profitable quarter sometime in FY 2014 you have to wonder what dilution will look like to provide the capital needed to sustain viabilty and growth. They have 60M shares in the AS trough and can always increase AS to whatever they believe they can sell and need to survive.
They will clean up the books and pump up the prospectus. Your stock numer is a good one as I figured 13M Shares for a total of about 80M shares. However the AS is:
Common stock, $0.0025 par value; 120,000,000 shares authorized, 21,278,642 shares issued and outstanding as of November 30, 2009.