With a $23mm back log, sales would have been $73mm to $78MM for the quarter. That puts them on a $300MM run rate for the year and at 17% margin a gross profit of about $51MM. Back log is 41% of booked revenue. A NAND supplier could come in here and buy OCZ and immediately boost sales by at least 41% overnight and improve the margin on those sales dramatically. In the hands of a NAND supplier, this could easily grow to a $1b run rate in 24 months. Sounds pretty attractive to me. MU, you listening?
What matters is what you can ship and what you get paid for. Sales are important but it is like Teeing off in golf: Hit for show, putt for dough. You'll find the dough on the bottom line in the financials and right now there is none.
Profitability is not the most important issue for a technology company in a disruptive space like OCZ. They are not going to continue as a stand alone company. As I've said before, these assets in the hands of a better capitalized company would be worth billions. They need to stay viable long enough to get an attractive buy out offer for all stakeholders. If you look at the recent deals that have gone down in the space, OCZs assets, revenue and market position look pretty compelling. MU could essentially double their market share overnight by buying OCZ. I believe that came out with the statement yesterday because the are nearing a deal. Why else would they need make another partial release.