Qualstar: Fiscal 2Q20 Financial Results

(in $ thousands)	2Q19	2Q20	6 mo. 19	6 mo. 20
Revenue	3,439	1,908	6,295	3,962
*Growth*		-45%		*-37%*
Net income (loss)	(11)	99	130	(57)

Qualstar Corporation announced its financial results for the three and six months ended June 30, 2020.

GAAP net income for 2FQ20 was $99 thousand or $0.05 per share, reflecting improved gross margins and more efficient operations.

Highlights for 2FQ20 and 1FH20
• Cash, restricted cash and cash equivalents increased by 23.2% to $4,881 from $3,963 as of December 31, 2019
• Revenue decreased for 2FQ20 from 2FQ19 by 44.5% to $1,908 from $3,439, and for 1FH20 by 37.1% to $3,962 from $6,295 for 1FH19 challenges as a result of Covid-19 and completion of the Sony project.
• Gross profit decreased for 2FQ20 from 2FQ19 by only 5.0% to $765 from $805, and for 2FH20 by 16.8% to $1,435 from $1,725 for 2FH19. The decrease in gross profit for 2FQ20 and 2FH20 is primarily attributable to lower revenue due to market challenges brought on by Covid-19, partially offset by higher gross margins.
• Income from operations was $98 for 2FQ20, compared with loss of $27 in 2FQ19, primarily due to more efficient operations, operating expenses decreased 19.8% as compared to 2FQ19, and decreased 7.1% as compared to 1FH19.
• In 2FQ20, net income was $99 or $0.05 per basic and diluted share, compared to a net loss of $11 or $0.01 per basic and diluted share in 2FQ19.

“We faired well in the second quarter despite key customers in our N2 Power business unit delaying shipments to the end of this year and into 2021,” said Steven N. Bronson, CEO and president. “We are gearing up for growth as we continue to invest in human capital and product development for both business groups.”