SIMI VALLEY, CA — (Marketwire) — 08/31/11 — Qualstar® Corporation (NASDAQ: QBAK), a manufacturer of automated tape storage solutions and high efficiency power supplies, today reported financial results for the fourth quarter and the fiscal year ended June 30, 2011.
Revenues for the fourth quarter of fiscal 2011 were $4.7 million, compared to $4.0 million for the same quarter of fiscal 2010, an increase of $0.7 million or 17.9%. Loss from operations was $0.1 million compared to $0.6 million in the fourth quarter of fiscal 2010. Net loss was $37,000 or $0.00 per basic and diluted share, compared to a net loss of $0.6 million, or $(0.05) per basic and diluted share for the fourth quarter of fiscal 2010.
Tape library segment revenues were $2.04 million for the fourth quarter, compared to $2.26 million for the prior year quarter, a decrease of $223,000 or 9.9%. Power supply segment revenues were $2.67 million for the quarter, compared to $1.73 million in the same quarter last year, an increase of $939,000 million, or 54.4%.
Gross profit increased to $1.6 million, or 34% of net revenues, for the three months ended June 30, 2011, from $1.3 million, or 32.1% of net revenues, for the three months ended June 30, 2010. The increase in gross profit is attributed to an increase in revenues, a change in product mix, a decrease in inventory reserves, and higher absorption of labor and overhead. Research and development (“R&D”) expenses for the fourth quarter of fiscal 2011 were $656,000, or 13.9% of revenues, compared to $749,000, or 18.8% of revenues, for the fourth quarter of fiscal 2010. Sales and marketing expenses were $506,000, or 10.7% of revenues, compared to $528,000 or 13.2% of revenues, in the corresponding period last year. General and administrative expenses in the fourth quarter of fiscal 2011 were $563,000, or 12% of revenues, compared to $631,000, or 15.8% of revenues, for the same period last year.
Qualstar reported revenues of $18.3 million in fiscal 2011, compared with $15.3 million in fiscal 2010, an increase of $3 million, or 19.9%. The Company-s net loss in fiscal 2011 was $0.7 million or $(0.06) per basic and diluted share, compared with a net loss in fiscal 2010 of $3.1 million, or $(0.25) per basic and diluted share.
Cash, cash equivalents and marketable securities were $22.7 million at June 30, 2011, down $1.6 million from $24.3 million at June 30, 2010. Inventory, net of reserves, at June 30, 2011 was $5.7 million, compared to $4.8 million at June 30, 2010.
Commenting on the Company-s business results, Bill Gervais, President and Chief Executive Officer of Qualstar said, “Notable highlights during the year were a 51% increase in revenues from our XLS enterprise level product line and a 46% increase in our N2Power power supply segment revenues. I am pleased with the overall growth of about 20% year over year, benefiting in part, from the investments we have made in new products and product enhancements over the last few years.”
Company management will hold a conference call to discuss its fourth quarter and fiscal year 2011 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 . 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 877-941-0844 or 480-629-9835. An audio replay will be available through September 7, 2011, by calling 800-406-7325 or 303-590-3030 and entering access code 4467254.
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 or or by phone at 805-583-7744.
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, 2011, and to the “Management-s Discussion and Analysis of Financial Condition and Results of Operations” sections of its Form 10-K.
-Financial Tables to Follow-
Nicki Andalon
Vice-President & CFO
Qualstar Corporation
(805) 583-7744
Marilynn Meek
General Information
Financial Relations Board
(212) 827-3773
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