OCZ sees significant 2Q loss
OCZ Technology Group Inc.(NASDAQ:OCZ) has said that its second quarter net loss will be ‘significant’ and that revenue will be much lower than originally forecast due to certain problems with its customer incentive program.
Shares of the solid-state hard drive maker plummeted as much as 46 percent in the pre-market trading session on Wednesday. The company which had earlier seen revenue for the quarter ending last month between $130 million and $140 million, now sees it at somewhere between $110 million and $120 million.
Although the company was to report its results today, it is said that its financial statements are still under review.
The San Jose, California based company has also named a new CEO, PLX Technology Inc Chief Executive Officer Ralph Schmitt. Cofounder Brian Peterson had resigned as CEO last month.
OCZ shares were trading at $1.88, down 40.37 percent at mid day session.
Cummins falls on proposed job cuts and lower outlook
Cummins Inc.(NYSE:CMI) has said that it expects to cut around 1500 jobs by the end of 2012 and has lowered its revenue and profit forecasts for the year. The engine maker’s shares fell to a 3 month low on this news.
The shares had gained 3.2 percent this year through yesterday. But today, the stock fell to a low of $86.50, but then recovered to $88.68, down 2.38 percent.
Yesterday, the company cut its full year revenue forecast to about $17 billion from $18 billion and its earnings before interest and tax to 13.5 percent from its earlier estimate in the range of 14.25 percent to 14.75 percent.
“We continued to see weak economic data in a number of regions during the third quarter, increasing the level of uncertainty regarding the direction of the global economy,” CEO Tom Linebarger said in a statement. “As a result of the heightened uncertainty, end customers are delaying in a number of markets, lowering demand for our products.”