Year – Over – Year Net Income Increased by
809.4%
Qualstar Corporation (NASDAQ: QBAK), a leading manufacturer of
data storage solutions and high-efficiency power supplies, today
announced its financial results for the three and six months ended
June 30, 2018.
(All amounts are in thousands, except per share
data):
Results for the Three Months Ended June 30, 2018 vs.
2017
- Net revenue increased 42.5% to $3,231
from $2,267
- Total operating expenses increased
13.1% to $948 from $838
- Net income of $474 or $0.23 per basic
and diluted share vs. net income of $59 or $0.03 per basic and
diluted share
Results for the Six Months Ended June 30, 2018 vs.
2017
- Net revenue increased 31.0% to $6,166
from $4,706
- Total operating expenses increased 6.9%
to $1,786 from $1,670
- Net income of $1,064 from of $117, an
increase of 809.4%, or $0.52 per basic and $0.51 per diluted share
vs. $0.06 per basic and diluted share
- Cash provided by operations of $820 vs.
$768
Highlights for the Three and Six Months Ended June 30,
2018
- Strong balance sheet and no debt
- Cash, restricted cash and cash
equivalents increased by 18% to $5,647 from $4,798 as of December
31, 2017
- Revenue growth in the data storage
segment is strong for both products and services
- Increased gross profit margins for the
three months ended June 30, 2018 from the same period last year by
4.4% to $1,422 from $897 and for the six months ended June 30, 2018
by 8.2% to $2,850 from $1,787 for the same period last year
“We are extremely pleased by our strong financial performance
and the foundation that we have in place. We continue to experience
strong momentum in our Data Storage business unit,” said Steven N.
Bronson, CEO and President of Qualstar. “We also continue to
explore external growth opportunities,” Mr. Bronson stated.
Cash, cash equivalents and restricted cash increased $1,090 to
$5,647 as of June 30, 2018 compared to $4,557 at June 30, 2017.
About Qualstar Corporation
Qualstar, founded in 1984, is a diversified electronics
manufacturer specializing in data storage and power supplies.
Qualstar is a leading provider of high efficiency and high-density
power supplies marketed under the N2Power™ brand, and of data
storage systems marketed under the Qualstar™ brand. Our N2Power
power supply products provide compact and efficient power
conversion for a wide variety of industries and applications
including, but not limited to, telecom, networking, broadcast,
industrial, lighting, gaming and test equipment. Our Qualstar data
storage products are used to provide highly scalable and reliable
solutions to store and retrieve very large quantities of electronic
data. Qualstar’s products are known throughout the world for high
quality and Simply Reliable™ designs that provide years of
trouble-free service. More information is available at
www.qualstar.com or www.n2power.com or by phone at
805-583-7744.
Cautionary Statement Concerning Forward-Looking
Statements
Statements used in this press release that relate to future
plans, events, financial results, prospects or performance are
forward-looking statements as defined under the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical fact, are statements that could be deemed
forward-looking statements. These forward-looking statements are
based upon the current expectations and beliefs of Qualstar's
management and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements.
Notwithstanding changes that may occur with respect to matters
relating to any forward looking statements, Qualstar does not
expect to, and disclaims any obligation to, publicly update any
forward-looking statements whether as a result of new information,
future events or otherwise. Qualstar, however, reserves the right
to update such statements or any portion thereof at any time for
any reason. In particular, the following factors, among others,
could cause actual or future results to differ materially from
those suggested by the forward-looking statements: Qualstar’s
ability to successfully execute on its strategic plan and meet its
long-term financial goals; Qualstar’s ability to successfully
implement and recognize cost savings; Qualstar’s ability to develop
and commercialize new products; industry and customer adoption and
acceptance of Qualstar’s new products; Qualstar’s ability to
increase sales of its products; the rescheduling or cancellation of
customer orders; unexpected shortages of critical components;
unexpected product design or quality problems; adverse changes in
market demand for Qualstar’s products; increased competition and
pricing pressure on Qualstar’s products; and the risks related to
actions of activist shareholders, including the amount of related
costs.
For further information on these and other cautionary
statements, please refer to the risk factors discussed in
Qualstar’s filings with the U.S. Securities and Exchange Commission
including, but not limited to, Qualstar’s Annual Report on Form
10-K for the period ending December 31, 2017, the “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” sections of such Form 10-K, and any subsequently filed
reports. All of Qualstar’s filings are available without charge
through the SEC’s website (www.sec.gov) or from Qualstar’s website
(www.qualstar.com).
QUALSTAR CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In
thousands, except per share data) Three Months
Ended Six Months Ended June 30,
June 30, 2018 2017 2018
2017 Net revenues $ 3,231 $ 2,267
$ 6,166 $ 4,706 Cost of goods sold 1,809
1,370 3,316 2,919
Gross profit 1,422 897
2,850 1,787 Operating expenses: Engineering 128 110
249 296 Sales and marketing 354 279 649 526 General and
administrative 466 449
888 848 Total operating expenses 948
838 1,786 1,670 Income
from operations 474 59 1,064 117 Other expenses -
- - - Income before
income taxes 474 59 1,064 117 Provision for income taxes -
- - - Net income $
474 $ 59 $ 1,064 $ 117 Earnings per
share: Basic $ 0.23 $ 0.03 $ 0.52 $
0.06 Diluted $ 0.23 $ 0.03 $ 0.51 $
0.06 Shares used in per share calculation: Basic 2,048
2,042 2,048 2,042
Diluted 2,094 2,042 2,098
2,042
QUALSTAR CORPORATION AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In
thousands, except share amounts) June 30,
December 31, 2018 2017
(Unaudited) Assets Current assets: Cash and cash
equivalents $ 5,547 $ 4,698 Restricted cash 100 100 Accounts
receivables, net 1,948 1,802 Inventories, net 1,679 1,564 Prepaid
expenses and other current assets 124
163 Total current assets 9,398
8,327 Non-current assets: Property and equipment, net 129
172 Other assets 120 68 Total
assets $ 9,647 $ 8,567
Liabilities
and Shareholders’ Equity Current liabilities: Accounts payable
$ 1,056 $ 1,065 Accrued payroll and related liabilities 300 173
Deferred service revenue, short-term 712 834 Other accrued
liabilities 464 454 Total
current liabilities 2,532 2,526
Long-term liabilities: Other long-term liabilities 39 52 Deferred
service revenue 77 93 Total
long-term liabilities 116 145
Total liabilities 2,648 2,671
Shareholders’ equity: Preferred stock, no par value;
5,000,000 shares authorized; no shares issued - - Common stock, no
par value; 50,000,000 shares authorized, shares issued and
outstanding 2,048,118 at June 30, 2018 and 2,042,019 shares at
December 31, 2017 19,519 19,480 Accumulated deficit (12,520
) (13,584 ) Total shareholders’ equity 6,999
5,896 Total liabilities and
shareholders’ equity $ 9,647 $ 8,567
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version on businesswire.com: https://www.businesswire.com/news/home/20180808005164/en/
Qualstar CorporationSteven N. BronsonChief Executive
Officer805-617-4419IR@Qualstar.com
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