Steven N. Bronson Interim CEO and President, Qualstar

Steven N. Bronson Interim CEO and President, Qualstar
Qualstar Corporation announced the appointment of Steven N. Bronson as interim CEO and president of Qualstar.

He replaces outgoing CEO, Lawrence D. Firestone.

The newly elected board of directors initiated its first step to reduce Qualstar’s cost structure by terminating the employment of Firestone for cause as of July 10, 2013, and several other executives as of July 31, 2013. All of these executives were based in Denver, CO and were hired in the last 12 months while Firestone served as CEO and president of Qualstar.

The board estimates that these measures should result in annual savings of approximately $1,000,000.

Since taking control of Qualstar, the board learned for the first time that on May 9, 2013, Firestone entered into a two year lease (with a one year minimum) on a 3,000 square foot office in the Denver, CO that was used by Firestone and his executive management team. Firestone opened the Denver office even though Qualstar was losing money, in the midst of a proxy contest for control and its HQs and a majority of its employees and operations are based in Simi Valley, CA.

"I believe that it is vital for any successful turnaround that executive management works closely with the rest of their team and that expenses need to be controlled and reduced wherever possible," said Bronson.

Bronson continued: "We expect to close the recently opened Denver, CO office within the next 90 days. We believe that the results of the 2013 annual meeting constitute a shareholder mandate to reverse Qualstar’s negative financial trend, and the board is committed to delivering on this directive. The board will continue to take the appropriate actions to right-size Qualstar, support its current and future business, build a solid foundation and preserve its liquidity base."

Separately, Qualstar announced that on July 3, 2013, the board amended the Rights Agreement, dated February 5, 2013 between Qualstar and Corporate Stock Transfer, Inc., as rights agent, by advancing the final expiration date of the Rights Agreement from the close of business on January 31, 2014 to the close of business on July 3, 2013. Effective on the close of business on July 3, 2013, the Rights Agreement is no longer effective.