Qualstar: Fiscal 1Q18 Financial Results

Qualstar Corporation announced its financial results for the three months ended March 31, 2018.

Quarter Ended March 31, 2018 Financial Results
Revenues for the quarter ended March 31, 2018 were $2.9 million, compared with $2.4 million for the quarter ended March 31, 2017, an increase of $0.5 million or 20.8%. Income from operations for the quarter ended March 31, 2018 was $0.6 million compared with $0.1 million for the quarter ended March 31, 2017, an increase of $0.5 million or 500%. Net income per basic share for the quarter ended March 31, 2018 was $0.29 and $0.03 for the quarter ended March 31, 2017. Net income per diluted share for the quarter ended March 31, 2018 was $0.28 and $0.03 for the quarter ended March 31, 2017.

Storage segment revenues were $1.6 million for the quarter ended March 31, 2018, compared with $0.7 million for the same period last year, an increase of $0.9 million or 128.6%, primarily due to the increased product development service revenue received from our partnership with Sony Imaging Products & Solutions for the development of an enterprise optical disc archive library.

Power supply segment revenues were $1.3 million for the quarter, compared with $1.7 million in the quarter ended March 31, 2017, a decrease of $0.4 million, or (23.5)%, due to delayed order deliveries caused by a global electronic component shortage.

Gross margin was 48.3% of revenues or $1.4 million for the quarter ended March 31, 2018, an increase from the gross margin of 37.5% of revenues or $0.9 million for the quarter ended March 31, 2017. Operating expenses for the three months ended March 31, 2018 were $0.8 million or 27.6% of revenues, and $0.8 million, or 33.3% of revenues for the three months ended March 31, 2017.

Steven N. Bronson, CEO and president, said: “We are delighted with our solid financial results for the first quarter of 2018. We benefited from an increase in revenues from data hardware sales and product development services, which revenues were partially offset by a decline in power supply revenues caused by component shortages. We expect our product development services revenues and income to vary in future periods based upon the timing of projects and our completion of project milestones. We continue to gain traction in expanding our storage partners and momentum in the custom power supply space.”

He added: “We continue to pursue new product opportunities and acquisitions.”

Cash, cash equivalents and restricted cash increased $1.5 million for the quarter ended March 31, 2018 to $5.3 million compared to $3.8 million at March 31, 2017.