Qualstar: Fiscal 4Q18 Financial Results

(in $ million)	4Q17	4Q18	FY17	FY18
Revenue	2.9	3.2	10.6	12.2
*Growth*		10%		*15%*
Net income (loss)	0.7	0.02	0.6	1.5

Qualstar Corporation, announced its financial results for the three and twelve-month periods ended December 31, 2018.

It reported revenues of $12.2 million for FY18, an increase of 15.1% compared with $10.6 million for the year ended December 31, 2017. Net income for FY018, was $1.5 million or $0.73 per basic and $0.72 per diluted share. This compares with a net income for FY17, of $0.6 million, or $0.31 per basic and diluted share.

Storage segment revenues were $6.3 million for FY18, compared with $4.3 million for the same period last year, an increase of $2.0 million or 46.5%, primarily due to new reseller relationships, whose customers have a high demand for tape libraries and our partnership with Sony Imaging Products & Solutions Inc. to develop an enterprise optical disk archive library.

Power supply segment revenues were $5.9 million for FY018, compared with $6.3 million in FY17, a decrease of $(0.4) million, or (6.3)%, primarily due to the variable life cycles of customer’s production.

Gross margin was 41.0% of revenues, or $5.0 million, for FY018, an increase from the gross margin of 39.6% of revenues, or $4.2 million, for FY017.

Cash, cash equivalents and restricted cash were $4.9 million at December 31, 2018, compared to $4.8 million of cash, cash equivalents and restricted cash at December 31, 2017.

In December 2018, the company entered into a stock buyback program permitting to repurchase shares on the open market. The firm has repurchased 52,206 shares at an average share price of $5.26. Total spending for the program through March 1, 2019, was $0.3 million.

4FQ18 Financial Results
Revenues for the 4FQ18, were $2.9 million, compared with $3.2 million for 4FQ17, a decrease of $(0.3) million or (9.4)%. Income from operations for 4FQ18, was $0.02 million compared with $0.7 million for 4FQ17. Basic and diluted net income per 4FQ17.

Storage segment revenues were $1.6 million for 4FQ18, compared with $1.5 million for the same period last year, an increase of $0.1 million or 6.7%, primarily due to new reseller relationships, whose customers have a high demand for tape libraries.

Power supply segment revenues were $1.3 million for the quarter, compared with $1.6 million in 4FQ17, a decrease of $(0.3) million, or (18.8)%, due to the production cycles of customers.

Gross margin was 31.0% of revenues or $0.9 million for 4FQ18, a decrease from the gross margin of 43.8% of revenues or $1.4 million for 4FQ17.

“We are extremely pleased with our overall performance for 2018, and groundwork that has been put in place for future growth. We will continue to expand our product offerings through organic efforts and pursue complementary acquisitions,” said Steven N. Bronson, CEO and president.