Computer component supplier OCZ Technology has warned full-year profits will be lower than expected due to weak retail sales.

The AIM-listed company, which is headquartered in California and makes computer memory technology, said it expects revenue in the range of $111-113 million for the year to 31 December.

'Although trading in the fourth quarter of 2007 was at record levels, the group experienced much weaker than expected sales in November and December primarily due to a slowdown in retail sales, particularly in the UK and Russian markets,' the company said in a trading update.

It added that, as a result, net profit is expected to range from $1.7-2.4 million, excluding non-cash items related to share-based payments. Analysts expected net profit of around $3 million, according to an OCZ spokesman.

OCZ shares were down 7 pence, or 15% at 39p.