OCZ Quite optimistic About Its FY 2011 Performance

As always, companies are posting their financial results or revealing their expectations for the upcoming quarters or whole Fiscal Years, and it seems that OCZ is among the more optimistic of companies.

Apparently, the maker of solid state drives raised its revenue guidance for Fiscal Year 2011 after a recently-announced stock placement.

Not long ago, it was revealed that the company reached certain agreements which will yield about $22 million in common stock and warrants.

This prompted the IT player to modify its outlook for the ongoing fiscal year.

Previously, the maker of storage units had set a revenue guidance of between $165 million and $180 million.

Now that this stock placement has been agreed upon, however, the range has turned into $170 to $190 million.

"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,” said Ryan Petersen, President and Chief Executive Officer of OCZ Technology Group.

“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," he added.

For those interested in numbers, OCZ plans to sell about 7.1 million shares of its common stock at $3.08125, as well as warrants to purchase about 1.8 million additional shares at $5.25 per share.

The net proceeds, after the transaction related fees and expenses are taken care of, should leave the company with about $20.3 million.

These funds will be used in capital expenditures, working capital, to accelerate product development and to boost manufacturing capabilities.

What remains to be seen is if the new revenue guidance turns out as expected, albeit it will take several months for the result to become apparent, considering that OCZ's Fiscal year 2011 ends on February 28, 2011.