OCZ Technology shares drop on earnings delay

SAN JOSE, Calif. -- Shares of OCZ Technology Group Inc. tumbled Wednesday after the flash memory maker delayed filing its earnings report for its second quarter and said its revenue had fallen short of its previous guidance.

OCZ said it fell short of its guidance because of the effects of customer incentive programs. The company said it expects to post a "significant net loss" for the second quarter that ended Aug. 31.

The company also named board member Ralph Schmitt as its president and CEO. Ryan Petersen, who helped found OCZ, resigned as president and CEO in mid-September. The company did not give a reason for Petersen's departure.

OCZ Technology shares dropped $1.31, or 41.8 percent, to $1.84 in midday trading Wednesday after falling as low as $1.80 earlier in the session, its lowest price since going public in early 2010.

OCZ originally expected $130 million to $140 million in revenue for the quarter. In September it lowered that estimate to a range of $110 million to $120 million. On Wednesday, the company said its revenue will be "materially lower" than that.

It said the effects of the customer incentive programs were discovered after the company issued its latest guidance.

Analysts expected OCZ Technology to report a loss of 15 cents per share and revenue of $119.7 million, according to FactSet.

The company said it requested an extension from the Securities and Exchange Commission for its second-quarter filing. If OCZ gets the extension, the deadline for its filing will be Oct. 15.

Schmitt has been on the OCZ board since April 2011. He was president and CEO of PLX Technology Inc. since 2008, but resigned that post Tuesday.