OCZ Technology shares fall on weak results
(Reuters) - Shares of OCZ Technology Group Inc OCZ.O fell as much as 20 percent on Wednesday after the solid-state device maker reported first-quarter results below analysts' estimates.
At least five brokerages, including Piper Jaffray and Needham & Co, cut their price targets on the stock.
The company reported a bigger-than-expected quarterly loss on Tuesday, citing supply chain shortages.
The shortage of power regulators at the end of the quarter lowered revenue by several millions, Sterne Agee analyst Alex Kurtz said in a note to clients. Kurtz cut his price target on the company's stock to $11 from $13.
"Without the shortage, revenue could have been as high as $140 million," FBN Securities analyst Shelby Seyrafi wrote in a note. He downgraded the stock to "sector perform" from "outperform."
OCZ Technology's quarterly revenue was $113.6 million.
Piper Jaffray and Needham cut their price targets, citing working capital constraints, increasing competition and low research and development spending compared to rivals.
San Jose, California-based OCZ, which competes with STEC Inc STEC.O, Seagate Technology Plc (STX.O) and Western Digital Corp (WDC.O), specializes in making high-end storage-media known as solid-state drives, or SSDs, which do not have movable parts like traditional hard-disk drives.
Shares of the company were down 16 percent at $4.59 on Wednesday on the Nasdaq. The stock, which touched a low of $4.36 earlier, was one of the biggest percentage losers on the Nasdaq.
(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)