The Deal: OCZ's Going Nowhere Fast
But on Sept. 5, 2012 OCZ said its second quarter revenue would instead likely clock in at $110 million to $120 million. The company closed down 19% the next day at $4.35 per share. The stock now trades at around $1.60, well off its 52-week high of $7.67.
Petersen had already weathered a potential scandal when news broke in April 2012 that he had been arrested in 1998 and charged in Idaho with several felonies--Idaho online court records list the charges as grand theft, forgery and possession of drug paraphernalia--that were later amended to a misdemeanor. In a secondary share offering, the prospectus referred only to his "youthful indiscretions."
OCZ's founder redeemed himself somewhat with investors when he candidly told Bloomberg that the charges stemmed from trying to swap a stolen car radio for marijuana when he was in his early 20's.
Youthful indiscretions are one thing; bad accounting practices are another.About two weeks after OCZ said it was off on its revenue predictions, Petersen was out as CEO. A month after that OCZ said it was reviewing its financial statements, mostly because of issues about customer incentive programs and the way they were accounted for in revenue. A Securities and Exchange Commission investigation followed soon thereafter. OCZ originally said that Petersen would be part of a technology advisory committee, but a person with knowledge of the situation said he no longer has anything to do with the company. Petersen did not respond to an e-mail seeking comment. Reshuffling at the top continued with board member Ralph Schmitt, the former head of semiconductor manufacturer PLX Technology (PLXT), taking over the top role. The chief sales officer for the company left, and, earlier this year OCZ said CFO Arthur Knapp was also retiring. But it has now been more than six months and no financials have appeared. In fact, on July 1, OCZ said it was going to have to expand its restatements from 2012 and the first quarter of 2013 all the way back to 2009. That effort would mean its financials would be filed, at the earliest by the end of August.
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