Qualstar: Fiscal 2Q17 Financial Results

(in $ million)	2Q16	2Q17	6 mo. 16	6 mo. 17
Revenue	2.4	2.3	4.5	4.7
*Growth*		-4%		4%
Net income (loss)	(0.3)	0.1	(0.7)	0.1

Qualstar Corporation announced its financial results for the second fiscal quarter ended June 30, 2017.

(All amounts are in thousands, except per share data)

Results for the Three Months Ended June 30, 2017 vs. 2016

Net revenue decreased 4.3% to $2,267 from $2,370
Total operating expenses decreased 23.7% to $838 from $1,099
Net income of $59 or $0.03 per basic and diluted share vs. net loss of $336 or ($.16) per basic and diluted share

Results for the Six Months Ended June 30, 2017 vs. 2016

Net revenue increased 4.1% to $4,706 from $4,520
Total operating expenses decreased 22.8% to $1,670 from $2,163
Net income of $117 from net loss of $750, an increase of 116%, or $0.06 per basic and diluted share vs. ($0.37) per basic and diluted share
Cash provided by operations of $768 vs. cash used by operations of $432

Highlights for the Three and Six Months Ended June 30, 2017

Strong balance sheet and no debt
Cash, restricted cash and cash equivalents increased by $766 to $4,557 from $3,791 as of December 31, 2016
Continued sales growth and product expansion within our power supply subsidiary
Increased gross profit margins for the three months ended June 30, 2017 from the same period last year by 6.9% and for the six months ended June 30, 2017 by 6.5% from the same period last year

“We continue to make substantial progress improving our operating efficiencies and positioning our business for long term success. This is our second consecutive profitable quarter and we have had positive cash flow for the last twelve months,” said Steven N. Bronson, CEO and president. “We also continue to explore acquisition opportunities.”