Qualstar: Fiscal 1Q16 Financial Results

Qualstar Corporation, manufacturer of storage solutions and power supplies, reported financial results for the first quarter ended March 31, 2016.

Results for the Three Months Ended March 31, 2016 vs 2015
(in thousands, except per share amounts)

• Revenue decreased 23%, or $655, to $2,150 from $2,805
• Gross profit decreased 29%, or $268, to $649 from $917
• Total operating expenses decreased 23%, or $310, to $1,064 from $1,374
• Net loss was $414, or ($0.03) per basic and diluted share versus $487, or ($0.04) per basic and diluted share, a 15% decrease in net loss
• Cash and cash equivalents at March 31, 2016 was $3,746 versus $3,963 at December 31, 2015

Highlights for the Quarter Ended March 31, 2016

• Qualstar has completed the launch of the competitively priced Q-series product line with the introduction of the Q80 in January 2016. The Q80 is scalable; therefore, it offers storage capacity to markets from mid-size to enterprise. The significant increase in the data transfer rate of the Q80 makes it comparable to the spinning disc.
• The release of the LTO-7 has sparked new interest in tape-based storage solutions. With 6TB native capacity per cartridge and 300MB/sec data transfer rate, robotic tape libraries can now compete with low end HDD RAID systems and offer the best cost ratio per terabyte.
• N2 Power, Qualstar’s power supply segment, had an increase in open orders of 49% or $696 thousand, to $2,107 thousand at March 31, 2016 from $1,411 thousand at December 31, 2015.
• N2 Power officially kicked off its new engineering and product development footprint in Singapore.

“Despite the challenging business climate, we continue to strengthen our product offerings, reduce our costs, and lay the foundation for future growth,” stated Steven N. Bronson, CEO and president.