Welcome!

Mobile IoT Authors: Liz McMillan, JT Ripton, Sematext Blog, Elizabeth White, PagerDuty Blog

News Feed Item

Qualstar Reports Fiscal 2013 First Quarter Results

SIMI VALLEY, CA -- (Marketwire) -- 11/07/12 -- Qualstar® Corporation (NASDAQ: QBAK), a manufacturer of data storage solutions and high-efficiency power supplies, today reported financial results for its first fiscal quarter ended September 30, 2012.

Fiscal 2013 First Quarter Financial Results
Revenues for the first quarter of fiscal 2013 were $3.5 million, compared to $4.6 million for the same quarter of fiscal 2012, a decrease of $1.2 million or 25.3 percent. Loss from operations was $1.9 million compared to income from operations of $13,000 in the first quarter of fiscal 2012. GAAP net loss was $1.9 million or $0.16 per basic and diluted share. Excluding charges of $325,000 in inventory reserves, $94,000 in legal settlement fees and $882,000 in facility restructuring expenses, non-GAAP net loss was $645,000 or $0.05 per share. This compares to GAAP net income of $57,000, or $0.00 per basic and diluted share for the first quarter of fiscal 2012.

Storage revenues were $1.9 million for the first quarter compared to $2.4 million in the first quarter of fiscal 2012, a decrease of $500,000, or 21.1 percent. This year-over-year decrease in revenues was a result of legacy products that were discontinued in the fourth quarter of fiscal 2012, as well as lower sales of XLS tape libraries, media and service. This decline was partially offset by strong sales of our RLS library products, which increased 15.5 percent from the same quarter last year. N2Power revenues were $1.5 million for the quarter, compared to $2.2 million in the prior year quarter, a decrease of $700,000, or 29.9 percent. The decrease in revenues was due to an inventory tightening by our OEM customers in two of our stronger markets, servers and telecom.

Gross profit decreased to $944,000 or 27.3 percent of revenues, for the three months ended September 30, 2012, from $1.7 million, or 37.1 percent of net revenues, for the three months ended September 30, 2011. The decrease was due to higher inventory reserves and lower absorption of manufacturing overhead.

Engineering expenses for the first quarter of fiscal 2013 were $666,000, or 19.3 percent of revenues, comparable to $648,000 or 14.0 percent of revenues, for the first quarter of fiscal 2012. Sales and marketing expenses were $531,000, or 15.4 percent of revenues, compared to $461,000 or 10.0 percent of revenues, in the corresponding period last year. The increase was due to compensation, advertising and promotional expenses. General and administrative expenses were $740,000 or 21.4 percent of revenues, compared to $592,000, or 12.8 percent of revenues, for the same period last year. The increase in G&A expenses was attributed to an increase in compensation expenses.

Cash, cash equivalents and marketable securities were $19.6 million at September 30, 2012, down $1.3 million from $20.9 million at June 30, 2012. Inventory, net of reserves, at September 30, 2012 was $4.1 million, compared to $4.5 million at June 30, 2012.

"While the lingering effects of the proxy contest impacted our fiscal first quarter performance, we are encouraged by our growing bookings and long-term trends in our markets," said Larry Firestone, President and CEO. "With the recently initiated strategic plan and new management in place we have taken significant steps to restructure the company and lower our breakeven with much more to come. We are expanding Qualstar's portfolio of products across its power conversion and storage markets and are targeting a variety of new market opportunities to drive long-term growth and profitability."

Qualstar Corporation Conference Call
Company management will hold a conference call to discuss its first quarter and fiscal year 2013 results today at 2:00 p.m. Pacific (5:00 p.m. Eastern). Investors are invited to listen to the call live via the Internet using the link under the "Investors" section at www.qualstar.com. Please go to the Website at least 15 minutes early to register, download and install any necessary audio software. A replay of the Webcast will be available after the live conference call. Additionally, participants can dial into the live conference call by calling 877-941-8631 or 480-629-9723. An audio replay will be available through November 21, 2012, by calling 800-406-7325 or 303-590-3030 and entering access code 4572757.

About Qualstar Corporation
Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies. The company's products are known throughout the world for high quality and Simply Reliable designs that provide years of trouble-free service. More information is available at www.qualstar.com or www.n2power.com or by phone at 805-583-7744.

Forward-Looking Statements
Statements concerning the future business, operating results and financial condition of the Company are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the Company's actual results include the Company's ability to increase sales of its products; rescheduling or cancellation of customer orders; unexpected shortages of critical components; unexpected product design or quality problems; and, adverse changes in market demand for its products. The Company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise. Further information on these and other potential factors that could affect the Company's financial results or condition are included in Qualstar's filings with the Securities and Exchange Commission. In particular, reference is made to the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2012, and to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its Form 10-K.


QUALSTAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)

                                               -----------------------------
                                                     Three Months Ended
                                               -----------------------------
                                                       September 30,
                                                    2012           2011
                                               -------------  --------------

Net revenues                                   $       3,453  $        4,624

Cost of goods sold                                     2,509           2,910
                                               -------------  --------------

Gross profit                                             944           1,714
                                               -------------  --------------

Operating expenses:
  Engineering                                            666             648
  Sales and marketing                                    531             461
  General and administrative                             740             592
  Restructuring Expense                                  882               -
                                               -------------  --------------
    Total operating expenses                           2,819           1,701
                                               -------------  --------------

(Loss) income from operations                         (1,875)             13

Other (expense) income                                   (71)             44
                                               -------------  --------------

(Loss) income before income taxes                     (1,946)             57

Provision for income taxes                                 -               -
                                               -------------  --------------

Net (loss) income                              $      (1,946) $           57
                                               =============  ==============

Loss per share:
                                               -------------  --------------
  Basic and Diluted                            $       (0.16) $         0.00
                                               =============  ==============

Shares used to compute earnings per share:
                                               -------------  --------------
  Basic and Diluted                                   12,253          12,253
                                               =============  ==============



                            QUALSTAR CORPORATION
                          CONDENSED BALANCE SHEETS
                               (in thousands)

                                               -------------- --------------
                                                September 30,    June 30,
                                                    2012           2012
                    ASSETS                       (Unaudited)     (Audited)
                                               -------------- --------------

Current assets:
  Cash and cash equivalents                    $        8,241 $        7,381
  Marketable securities, short-term                     7,709          7,135
  Receivables, net of allowance for doubtful
   accounts of $54 as of September 30, 2012
   and $38 as of June 30, 2012                          2,616          2,995
  Inventories, net                                      4,121          4,475
  Prepaid expenses and other current assets               287            151
                                               -------------- --------------

    Total current assets                               22,974         22,137
                                               -------------- --------------

Property and equipment, net                               293            268
Marketable securities, long-term                        3,649          6,369
Other assets                                               52             50
                                               -------------- --------------

    Total assets                               $       26,968 $       28,824
                                               ============== ==============

     LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                             $        1,158 $        2,039
  Accrued payroll and related liabilities                 458            332
  Other accrued liabilities                             2,198          1,374
                                               -------------- --------------

    Total current liabilities                           3,814          3,745
                                               -------------- --------------

Other long-term liabilities                                26             26
Commitments and contingencies
Shareholders' equity:
  Common stock, no par value; 50,000 shares
   authorized, 12,253 shares issued and
   outstanding as of September 30, 2012 and
   June 30, 2012                                       18,892         18,878
  Accumulated other comprehensive income                   16              9
  Retained earnings                                     4,220          6,166
                                               -------------- --------------
    Total shareholders' equity                         23,128         25,053
                                               -------------- --------------

    Total liabilities and shareholders' equity $       26,968 $       28,824
                                               ============== ==============



                            QUALSTAR CORPORATION
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                   THREE MONTHS ENDED SEPTEMBER 30, 2012
                  (in thousands, except per share amounts)
                                (UNAUDITED)

Non-GAAP net earnings are GAAP net earnings with the following
 modifications: (1) elimination of inventory reserve; (2) elimination of
 litigation settlement expense and (3) restructuring expenses.


                     ------------------------------------------------------
                              Three Months Ended September 30, 2012
                     ------------------------------------------------------

                                             (2)
                                 (1)      Litigation      (3)
                              Inventory   Settlement Restructuring    Non-
                       GAAP    Reserve     Expense      Expenses      GAAP
                     -------  ---------  ----------- -------------  -------

Net revenues         $ 3,453          -            -             -  $ 3,453

Cost of goods sold     2,509       (325)           -             -    2,184
                     -------  ---------  ----------- -------------  -------

Gross profit             944        325            -             -    1,269
                     -------  ---------  ----------- -------------  -------

Operating expenses:
  Engineering            666          -            -             -      666
  Sales and
   marketing             531          -            -             -      531
  General and
   administrative        740          -            -             -      740
  Restructuring
   Expenses              882          -            -          (882)       -
                     -------  ---------  ----------- -------------  -------
    Total operating
     expenses          2,819          -            -          (882)   1,937
                     -------  ---------  ----------- -------------  -------

Loss from operations  (1,875)       325            -           882     (668)

Other (expense)
 income                  (71)         -           94             -       23
                     -------  ---------  ----------- -------------  -------

Loss before income
 taxes                (1,946)       325           94           882     (645)

Provision for income
 taxes                     -          -            -             -        -
                     -------  ---------  ----------- -------------  -------

Net loss             $(1,946) $     325  $        94 $         882  $  (645)
                     =======  =========  =========== =============  =======

Loss per share*:
                     -------  ---------  ----------- -------------  -------
  Basic and Diluted  $ (0.16) $    0.03  $      0.01 $        0.07  $ (0.05)
                     =======  =========  =========== =============  =======

Shares used to
 compute loss per
 share:
                     -------  ---------  ----------- -------------  -------
  Basic and Diluted   12,253     12,253       12,253        12,253   12,253
                     =======  =========  =========== =============  =======

* Financial measures have not been provided for the three months ended
 September 30, 2011 as no non-GAAP financial measures were reported.

For more information, contact:

Nicki Andalon
Vice-President & CFO
Qualstar Corporation
(805) 583-7744
Email Contact

Vanessa Lehr/Annie Leschin
Investor Relations
StreetSmart Investor Relations
(415) 775-1788

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...