STEC, Inc. Under Shareholder Investigation

PRLog (Press Release) - Nov 06, 2009 -
An investigation on behalf of investors in shares of STEC, Inc. (Public, NASDAQ:STEC) over potential violations of Federal Securities laws by STEC, Inc. was announced.

If you are a current long term investor in shares of STEC, Inc. (Public, NASDAQ:STEC) and/or purchased STEC common stock between August 3, 2009 and November 3, 2009, you should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com  or at: +1 (858) 779 – 1554

The investigation by a law firm focuses on potential claims against STEC, Inc. (Nasdaq: STEC), concerning possible securities violations in relation to public statements made by STEC inc between August 3, 2009 and November 3, 2009 and whether that statements regarding STEC’s business, operations, and prospects were false and misleading. On November 3, 2009, STEC Inc. lost over thirty percent of their value after STEC lowered its 2009 guidance below Wall Street's outlook, citing inventory surpluses at one of its largest customers, EMC (NYSE: EMC), which accounts for 90 percent of STEC’s Zeus IOPS SSD business and which had placed a $120 million order for the second half of 2009, therefore would carry 2009 inventory into 2010, and thus would placing STEC’s 2010 first quarter results at risk. Shares of STEC declined from $24.41 per share on November 03,2009 to about $14.50 per share on November 04, 2009, and were down from its 52weekHigh of $42.50 per share. According to the investigation while analysts expected some inventory build by the first quarter of 2010, the surplus of inventory in the third quarter of 2009 came as a complete surprise to analysts and investors. STEC, Inc., located in Santa Ana, California, designs, develops, manufactures and markets custom memory solutions based on flash memory and dynamic random access memory (DRAM) technologies. STEC, Inc. specializes in developing flash drives and memory cards used in sensitive and highly volatile environments and high-density DRAM modules. STEC, Inc. reported in 2007 Total Revenue of $188.65million with a Net Income of $4.29million and in 2008 Total Revenue of $227.44million with a Net Income of $10.01million.

Those who are a current long term investor in shares of STEC, Inc. (Public, NASDAQ:STEC) and/or purchased STEC common stock between August 3, 2009 and November 3, 2009, should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com  or at: +1 (858) 779 - 1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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