Qualstar Reports Fiscal 2011 Fourth Quarter and Full Year Results
Qualstar Corp. reported financial results for the fourth quarter and the fiscal year ended June 30, 2011.
Fiscal 2011 fourth quarter financial results 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.
Fiscal 2011 Full Year Financial Results 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."
