UPDATE 1-OCZ sees NAND flash memory shortage hitting 1st-qtr revenue
* Sees 1st-qtr revenue $50 mln-$55 mln vs est $81.0 mln
* Sees NAND flash shortage continuing into current quarter
* Shares down 8.4 pct premarket
July 15 (Reuters) - Solid-state hard drive (SSD) maker OCZ Technology Group Inc forecast first-quarter revenue way below analysts' estimates, citing a tight supply of NAND flash chips, the primary raw material used in making SSDs.
OCZ shares, which closed at $1.65 on Friday on the Nasdaq, were down 8.4 percent premarket on Monday.
The company estimated revenue of between $50 million and $55 million for the quarter ended May 31, well below the $81.8 million analysts were looking for.
OCZ, which has not reported results for the last three quarters because of an accounting problem, has been battling a supply shortage of NAND chips for about a year.
The market for NAND memory chips, used for general storage and data transfer in memory cards and solid-state drives (SSDs), has tightened on booming demand from mobile devices.
The company has also been trying to diversify its NAND supply base.
"We have established strong supply commitments to adequately meet (NAND) demand in the third and fourth quarters," Chief Executive Ralph Schmitt said.
OCZ counted Micron Technology, LSI Corp and Samsung Electronics Co as its main suppliers for the year ended February 2012.
The company is also in the process of restating results since 2009 due to wrong accounting of certain customer incentive programs. It also said it is trying to access more capital to fund its operations.
The SSD industry has been undergoing a consolidation. Hard drive maker Western Digital Corp announced plans to buy troubled SSD maker Stec Inc for $340 million last month.
Memory chipmaker Sandisk Corp also said earlier this month that it would buy privately held SSD maker Smart Storage Systems for about $307 million.