OCZ Raises FY11 Revenue Guidance

OCZ Technology Group, Inc. is raising revenue guidance based on recently executed agreements for a private placement of approximately $22 million of its common stock and warrants. For fiscal 2011 ending on February 28, 2011, OCZ’s prior revenue guidance was in the range of $165 million to $180 million. The Company now raises that guidance to a range of $170 million to $190 million.

OCZ recently announced it intends to sell approximately 7.1 million shares of its common stock at $3.08125, along with warrants to purchase approximately 1.8 million additional shares at $5.25 per share. After payment of transaction related fees and expenses, the net proceeds are expected to be  approximately $20.3 million. The Company agreed to file a registration statement with the Securities and Exchange Commission, registering the resale of these shares and the shares underlying the warrants.

Merriman Capital, Inc., a wholly-owned subsidiary of Merriman Holdings, Inc. (Nasdaq:MERR), acted as the exclusive placement agent for the transaction.

The net proceeds from the transaction will be used primarily for working capital, capital expenditures, and general corporate purposes, including to support increased sales of core SSD product lines, increase manufacturing capabilities for existing and prospective OEM clients at the Company’s newly expanded Taiwan-based facilities, and accelerate product development.

"As we stated upon executing the purchase agreements for this financing, OCZ continues to experience rapid growth globally in multiple markets with the introduction of innovative solid state products. The proceeds from the financing will favorably impact both revenue and gross margins, and also provide critical support for current and future enterprise OEM opportunities," said Ryan Petersen, President and Chief Executive Officer of OCZ Technology Group.