NEW YORK ( TheStreet) -- Computer storage provider OCZ Technology Group (OCZ) and hard-drive makers Western Digital (WDC) and Seagate Technology (STX) are trading lower after OCZ lowered guidance for the quarter that ended Aug. 31.
As of Thursday's market open, OCZ is down about 30% from highs on Wednesday. Shares in Seagate are lower in sympathy, down 4%. Western Digital's are lower by less than 1%.
Intel (INTC), which has a strong enterprise presence in the solid-state storage space, opened higher to trade up over 1%. Intel's relative revenue stream from solid-state drives is minimal.
OCZ CEO Ryan Petersen stated in the preliminary second-quarter earnings report:"Despite achieving bookings in excess of our expectations for our second fiscal quarter, we were not able to meet our previously stated revenue guidance due primarily to constraints in NAND flash supply. "During the month of August we experienced a significant shortage on certain NAND flash components, based on industry wide tightening of supply, leaving OCZ with an undersupply of the 2xnm MLC NAND used in our Vertex and Agility Line of products. "While we believe that the situation will resolve itself, subject to market conditions, we plan to hasten our transition to new process nodes in order to help ease these supply constraints." According to the preliminary report, revenue for OCZ's fiscal second quarter is $110 million to $120 million, down $20 million from the previous estimate of $130 million to $140 million. You could have seen this coming before it happened. TheStreet.com's Dick Arms wrote
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