Qualstar: Fiscal 3Q15 Financial Results

(in $ million)	3Q14	3Q15	9 mo. 14	9 mo. 15
Revenues	2.6	2.8	8.2	9.7
*Growth*		8%		*18%*
Net income (loss)	(2.2)	(0.5)	(4.9)	(1.1)

Qualstar Corporation announced its financial results for the third fiscal quarter ended March 31, 2015.

Results for Three Months Ended March 31, 2015 vs. 2014

Net revenue increased 7.7% to $2.8 million from $2.6 million
Total operating expenses decreased 30.0% to $1.4 million from $2.0 million
Net loss decreased by 77.3% to $0.5 million from $2.2 million, or ($.04) per basic and diluted share vs. ($.18) per basic and
diluted share

Results for Nine Months Ended March 31, 2015 vs. 2014

Net revenue increased 18.3% to $9.7 million from $8.2 million
Total operating expenses decreased 35.8% to $4.3 million from $6.7 million
Rent restructuring changed from a $26,000 expense to a $245,000 recovery
Net loss decreased 77.6% to $1.1 million from $4.9 million or ($.09) per basic and diluted share vs. ($.40) per basic and diluted share
Cash Used in Operations decreased 72.9% to $1.6 million from $5.9 million year-over-year
Cash, cash equivalents and marketable securities were $5.5 million at March 31, 2015, down $1.7 million from $7.2 million at June 30, 2014. The decrease in cash is attributed to operating activities and the $0.2 million of asset purchases in connection with the company’s move to new facilities.

During the quarter ended March 31, 2015, the company continued to increase revenue, manage operating expenses and improve the bottom line. To keep the momentum going, it plans on expanding internationally and have signed on two new distributors in Asia and added several new international partners. The company shall continue to look for additional products to expand the company’s product portfolio.

“We are working to improve top line growth and increase margins. We recently announced end-of-service of two of our older storage product models. As a result, we experienced a reduction in the extended warranty service revenue associated with these models. However, this allows our customers to purchase our new products with newer technology,” stated Steven N. Bronson, CEO and president. “Our emphasis on expanding Qualstar’s world-wide presence is demonstrated by the enthusiastic reception we experienced from our new sales partners in Asia, Europe and Australia.”