OCZ Technology Group (Nasdaq: OCZ) is lower today following issuance of preliminary Q1 results. Revs of $50 million to $55 million are expected, while the Street was higher at $74.2 million.

Lazard Capital's Edward Parker is out with a few comments on OCZ following the update. He notes that Q2 revs came in at less than half of the level reported a year ago and a far cry away from the $165M quarterly run-rate implied in the company's original F2013 guidance. Much of this is the rationalization of the product portfolio away from consumer products, but NAND flash shortages have been worse than anticipated.

Parker is still positive that SSD is a powerful growth segment, but OCZ is clearly a few quarters away from a strong turnaround story.

OCZ said gross margin in the enterprise segment are expected to be 17 percent to 20 percent. Parker said, OCZ suffers from reputational issues in the enterprise and we're not convinced that OCZ can compete on a differentiated product basis, but focus on the enterprise market is the correct strategy.

Lazard has OCZ at Neutral with no price target. The firm moved FY13 loss from $1.38 to $1.51 per share, while FY14 loss expectations tighten from $0.50 to $0.34 per share.

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Shares of OCZ Technology Group closed at $1.65 yesterday, with a 52 week range of $1.11 - $7.67.