Qualstar: Fiscal 2Q16 Financial ResultsCompany in bad financial shape to pursue divestures or potential acquisitions
This is a Press Release edited by StorageNewsletter.com on 2016.08.15
|(in $ million)||2Q15||2Q16||6 mo. 15||6 mo. 16|
|Net income (loss)||(0.3)||(0.3)||(0.7)||(0.8)|
Qualstar Corporation announced its financial results for the second fiscal quarter ended June 30, 2016.
(All amounts are in thousands, except per share data
Results for the Three Months Ended June 30, 2016 vs. 2015
- Net revenue decreased 27% to $2,370 from $3,249
- Total operating expenses decreased 21% to $1,099 from $1,383
- Net loss was $336 or ($.16) per basic and diluted share vs. $254 or ($.12) per basic and diluted share
Results for the Six Months Ended June 30, 2016 vs. 2015
- Net revenue decreased 25% to $4,520 from $6,054
- Total operating expenses decreased 22% to $2,163 from $2,757
- Net loss increased slightly to $750 from $741 or ($.37) per basic and diluted share vs. ($.36) per basic and diluted share
- The use of cash decreased 16% to $459 from $546 year-over-year
Highlights for the Quarter and Six Months Ended June 30, 2016
- Storage business segment reduced loss before taxes to $3
- Nonrecurring expenses of severance, inventory reserves and legal expenses were $262 and $384, for the quarter and the six months, respectively
- Implemented one-for-six reverse stock split
- Regained compliance with NASDAQ continued listing requirements
Qualstar's board of directors has determined to pursue divestures or potential acquisitions that are either synergistic to our business or represent an attractive growth industry. As the firm works on this strategy, it intend to simultaneously work to increase its product offerings and evaluate operating expenses for cost savings.
"We are encouraged by the ongoing reduction in our net loss, and remain confident in our ability to return the company to profitability once our restructuring efforts are complete," said Steven N. Bronson, CEO and president. "For the second quarter the net loss was under $75,000, excluding the $262,000 of nonrecurring expenses. This is in line with our expectations, given the soft business conditions that existed during the period for both business segments."