OCZ stock prices fall by 40% in an hour

OCZ is facing crisis after announcing that it will face significant losses in the second quarter of fiscal 2013.

According to the Inquirer, the hard drive manufacturer told investors that its earnings forecast had not accounted for customer incentive programmes, which would result in both significant losses to the company but also negative gross margins on products.

The company immediately appointed a new CEO but that didn’t stop its stock prices dropping by 40 per cent in the space of an hour as investors bailed out.

“We will overcome some near term tactical challenges, and we will focus relentlessly on increased value to both our investors and customers,” said OCZ’s replacement CEO, Ralph Schmitt.

“We have an amazing opportunity in front of us and we will take full advantage of our position, products and people to be successful.”