Qualstar: Fiscal 2Q15 Financial Results

(in $ million)	2Q14	2Q15	6 mo. 14	6 mo. 15
Revenue	3.4	3.5	5.6	6.8
*Growth*		3%		*21%*
Net income (loss)	(0.3)	(0.2)	(2.8)	(0.6)

Qualstar Corporation announced its financial results for the second fiscal quarter ended December 31, 2014.

Results for the Three Months Ended December 31, 2014 vs 2013

Net revenue increased 2.9% to $3.5 million from $3.4 million
Total operating expenses decreased 11.1% to $1.6 million from $1.8 million
Rent restructuring changed from a $26,000 expense to a $245,000 recovery
Net loss was slightly lower at $245,000 or ($.02) per basic and diluted share vs $251,000 or ($.02) per basic and diluted share

Results for the six months ended December 31, 2014 vs 2013

Net revenue increased 21.4% to $6.8 million from $5.6 million
Total operating expenses decreased 35.4% to $3.1 million from $4.8 million
Rent restructuring changed from a $26,000 expense to a $245,000 recovery
Net loss decreased 78.6% to $0.6 million from $2.8 million or ($.05) per basic and diluted share vs ($.23) per basic and diluted share
Cash used in operations decreased 42.4% to $1.9 million from $3.3 million year-over-year
Cash, cash equivalents and marketable securities were $5.2 million at December 31, 2014, down $2.0 million from $7.2 million at June 30, 2014. The majority of the decrease in cash is attributed to operating activities, which includes an increase in accounts receivables.

Qualstar has taken substantial action to reduce overhead spending. The company has entered into agreements that will reduce its leased space by 63.8% to 20,560 square feet from 56,845 square feet. The company’s base rent payments will be reduced to $20,000 compared to $44,000 per month, a 54.9% reduction. In addition to rent, overall operating expenses related to facilities costs will be reduced. Also, in December, litigation costs were reduced following the recent litigation settlement reached with the company’s former CEO, Lawrence Firestone.

The company continues to execute on its commitment to expand product offerings. The XL and PL series of High Wattage Power supplies were recently added to the N2Power product portfolio.

Steven N. Bronson, CEO and president, Qualstar, said: “We are pleased to see the significant progression of our financial turnaround, and expect that our strategic decisions will continue to benefit Qualstar and enhance shareholder value through 2015 and the years to follow.”