QUALSTAR CORPORATION Qualstar Corporation Reports 2020 Third Quarter Results
IRVINE, Calif., November 30, 2020 - Qualstar Corporation(OTC Markets: QBAK), a leading manufacturer of data storage solutions and high-efficiency power supplies, today announced its financial results for the three and nine months ended September 30, 2020. GAAP net loss for the quarter was $189 thousand, or $0.10 per share, reflecting lower revenue due to the economic impact of the pandemic, partially offset by higher gross margin percentages based on the product mix.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages) | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
Consolidated Financial Results | 2020 | 2019 | $ ∆ | % ∆ | 2020 | 2019 | $ ∆ | % ∆ | ||||||||||||
(49.9)% | (41.8)% | |||||||||||||||||||
Net revenue | $ | 1,855 | $ | 3,703 | $ | (1,848) | $ | 5,817 | $ | 9,998 | $ | (4,181) | ||||||||
Gross profit | $ | 779 | $ | 954 | $ | (175) | (18.3)% | $ | 2,214 | $ | 2,679 | $ | (465) | (17.4)% | ||||||
Gross margin | 42.0% | 25.8% | 38.1% | 26.8% | ||||||||||||||||
nm% | nm% | |||||||||||||||||||
Income (loss) from operations | $ | (189) | $ | 37 | $ | (226) | $ | (255) | $ | 146 | $ | (401) | ||||||||
nm% | nm% | |||||||||||||||||||
Net income (loss) | $ | (189) | $ | 49 | $ | (238) | $ | (246) | $ | 179 | $ | (425) | ||||||||
Earnings (loss) per share (basic | ||||||||||||||||||||
and diluted) | $ | (0.10) | $ | 0.03 | $ | (0.13) | nm% | $ | (0.13) | $ | 0.09 | $ | (0.22) | nm% | ||||||
Highlights for the Three and Nine Months Ended September 30, 2020
- Revenue decreased for the three months ended September 30, 2020 by 49.9% to $1,855 from $3,703 for the same period last year, and for the nine months ended September 30, 2020 by 41.8% to $5,817 from $9,998 for the same period last year, primarily due to the market challenges as a result of the COVID-19 pandemic and completion of the Sony project.
- Gross profit decreased for the three months ended September 30, 2020 by 18.3% to $779 from $954 for the same period last year, and for the nine months ended September 30, 2020 by 17.4% to $2,214 from $2,679 for the same period last year. The decrease in gross profit for the three and nine months ended September 30, 2020 from the same periods last year is primarily attributable to lower revenue, while higher gross margin percentages due to product mix helped improve gross profit.
- The Company reported a loss from operations of $189 for the third quarter of 2020, compared with income from operations of $37 in the same period in 2019, and a loss from operations of $255 for the nine months ended September 30, 2020, compared with income from operations of $146 in the corresponding period last year. The declines in operating income were primarily due to lower revenues resulting from lower demand caused by the COVID-19 pandemic. Operating expenses increased 5.6% compared to the same three months period last year, and decreased 2.5% for the same nine months period last year.
- In the third quarter of 2020, net loss was $189, or $0.10 per share, compared to net income of $49 thousand, or $0.03 per share in the same quarter last year.
- Cash, restricted cash and cash equivalents increased by 22.1% to $4,716 from $3,863 as of December 31, 2019.
"We faired well in the third quarter despite key customers in our N2 Power business unit delaying shipments to the end of this year and into 2021," said Steven N. Bronson, CEO and President of Qualstar. "We continue to invest in human capital and product development for both business groups and feel we are well positioned for growth, both domestic and international."
Qualstar makes available its annual financial statements, quarterly financial statements, and other significant reports and amendments to such reports, free of charge, on its website as soon as reasonably practicable after such reports are prepared. Please visit www.qualstar.com to view the Company's financial results in more detail.
About Qualstar Corporation
Qualstar, founded in 1984, is a diversified electronics manufacturer specializing in data storage and power supplies. Qualstar is a leading provider of high efficiency and high-density power supplies marketed under the N2Power™ brand, and of data storage systems marketed under the Qualstar™ brand. Our N2Power power supply products provide compact and efficient power conversion for a wide variety of industries and applications including, but not limited to, telecom, networking, broadcast, industrial, lighting, gaming and test equipment. Our Qualstar data storage products are used to provide highly scalable and reliable solutions to store and retrieve very large quantities of electronic data. Qualstar'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.comor www.n2power.comor by phone at 805-583-7744.
Non-GAAP Financial Information
A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with GAAP, this press release presents EBITDA and EBITDA margin, each of which is a non-GAAP measure. EBITDA is determined by taking net income and adding interest, income taxes, depreciation and amortization, and EBITDA margin is determined by dividing EBITDA by net revenue. Interlink believes that these non-GAAP measure, viewed in addition to and not in lieu of net income and gross margin, provide useful information to investors by providing more focused measures of operating results. These metrics are an integral part of Quarter's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of EBITDA to net income, the most comparable GAAP measure, is available in the financial statements on its webisite under Investor Relations. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies.
Contact Information:
Steven N. Bronson Chief Executive Officer Qualstar Corporation 805-617-4419IR@Qualstar.com
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Qualstar Corporation published this content on 30 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 December 2020 17:46:06 UTC
