UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: August 31, 2011
(Date of earliest event reported)
Qualstar Corporation
(Exact name of registrant as specified in its charter)
CA
(State or other jurisdiction
of incorporation)
000-30083
(Commission File Number)
95-3927330
(IRS Employer
Identification Number)
3990-B Heritage Oak Court
(Address of principal executive offices)
93063
(Zip Code)
805-583-7744
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On August 31, 2011, Qualstar Corporation issued a press release regarding results of operations and financial condition for the 2011 fiscal fourth quarter and year ended June 30, 2011. A copy of this press release is being furnished as Exhibit 99.1 to this Current Report on Form 8 K. In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: August 31, 2011 |
QUALSTAR CORPORATION
By: /s/ William J. Gervais |
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| Exhibit No. | Description |
| 99.1 | Press Release of Qualstar Corporation dated August 31, 2011 |
SIMI VALLEY, CA -- (Marketwire - August 31, 2011) - 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.
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."
Qualstar Corporation Conference Call
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 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 877-941-0844 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.
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, 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-
QUALSTAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(UNAUDITED)
Three Months Ended Twelve Months Ended
-------------------- --------------------
June 30, June 30,
2011 2010 2011 2010
--------- --------- --------- ---------
Net revenues $ 4,707 $ 3,991 $ 18,302 $ 15,270
Cost of goods sold 3,078 2,710 11,573 10,626
--------- --------- --------- ---------
Gross profit 1,629 1,281 6,729 4,644
--------- --------- --------- ---------
Operating expenses:
Research and development 656 749 2,744 3,150
Sales and marketing 506 528 2,327 2,294
General and administrative 563 631 2,534 2,632
--------- --------- --------- ---------
Total operating expenses 1,725 1,908 7,605 8,076
--------- --------- --------- ---------
Loss from operations (96) (627) (876) (3,432)
Investment Income 54 52 191 311
--------- --------- --------- ---------
Loss before income taxes (42) (575) (685) (3,121)
Benefit for income taxes (5) - (5) -
--------- --------- --------- ---------
Net loss $ (37) $ (575) $ (680) $ (3,121)
========= ========= ========= =========
Loss per share:
--------- --------- --------- ---------
Basic and Diluted $ (0.00) $ (0.05) $ (0.06) $ (0.25)
========= ========= ========= =========
Shares used to compute loss per
share:
--------- --------- --------- ---------
Basic and Diluted 12,253 12,253 12,253 12,253
========= ========= ========= =========
--------- --------- --------- ---------
Cash dividends declared per
common share $ - $ - $ - $ 0.12
--------- --------- --------- ---------
QUALSTAR CORPORATION
CONDENSED BALANCE SHEETS
(in thousands)
June 30, June 30,
2011 2010
ASSETS (Audited) (Audited)
---------- ----------
Current assets:
Cash and cash equivalents $ 4,970 $ 2,234
Marketable securities, short-term 10,713 12,033
Receivables, net of allowance for doubtful accounts
of $180 as of June 30, 2011 and $113 as of June 30,
2010 3,005 2,829
Inventories, net 5,673 4,823
Prepaid expenses and other current assets 312 299
---------- ----------
Total current assets 24,673 22,218
---------- ----------
Property and equipment, net 232 260
Marketable securities, long-term 6,981 9,997
Other assets 49 46
---------- ----------
Total assets $ 31,935 $ 32,521
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,293 $ 1,225
Accrued payroll and related liabilities 495 521
Other accrued liabilities 945 903
---------- ----------
Total current liabilities 2,733 2,649
---------- ----------
Other long-term liabilities 22 25
Commitments and contingencies
Shareholders' equity:
Common stock, no par value; 50,000 shares
authorized, 12,253 shares issued and outstanding as
of and June 30, 2011 and June 30, 2010 18,869 18,830
Accumulated other comprehensive income 38 64
Retained earnings 10,273 10,953
---------- ----------
Total shareholders' equity 29,180 29,847
---------- ----------
Total liabilities and shareholders' equity $ 31,935 $ 32,521
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For more information, contact: Nicki Andalon Vice-President & CFO Qualstar Corporation (805) 583-7744 nandalon@qualstar.com Marilynn Meek General Information Financial Relations Board (212) 827-3773 mmeek@mww.com