-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, En1l7b29+AuvRKiPXkGdSye1rt3lGFWhr/tBPZ5kGc+X3w6t//Sred40CFlkNJF4 ifQPFTkegy4IMA2TyDvxMQ== 0001157523-07-011202.txt : 20071113 0001157523-07-011202.hdr.sgml : 20071112 20071113160524 ACCESSION NUMBER: 0001157523-07-011202 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071113 DATE AS OF CHANGE: 20071113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUALSTAR CORP CENTRAL INDEX KEY: 0000758938 STANDARD INDUSTRIAL CLASSIFICATION: MAGNETIC & OPTICAL RECORDING MEDIA [3695] IRS NUMBER: 953927330 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30083 FILM NUMBER: 071238233 BUSINESS ADDRESS: STREET 1: 3990-B HERITAGE OAK COURT CITY: SIMI VALLEY STATE: CA ZIP: 93063 BUSINESS PHONE: 805-583-7744 MAIL ADDRESS: STREET 1: 3990-B HERITAGE OAK COURT CITY: SIMI VALLEY STATE: CA ZIP: 93063 8-K 1 a5545809.txt QUALSTAR CORPORATION, 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) November 13, 2007 QUALSTAR CORPORATION (Exact name of registrant as specified in its charter) California 000-30083 95-3927330 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 3990-B Heritage Oak Court, Simi Valley, CA 93063 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (805) 583-7744 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Exhibit Index on page 3 1 Item 2.02 Results of Operations and Financial Condition. On November 13, 2007, Qualstar Corporation issued a press release regarding results of operations and financial condition for the fiscal first quarter ended September 30, 2007. 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. (d) Exhibits. Exhibit Number Description 99.1 Press release of Qualstar Corporation dated November 13, 2007. SIGNATURES 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. QUALSTAR CORPORATION November 13, 2007 By: /s/ Andrew Farina ------------------------ Andrew Farina Vice President & CFO 2 EXHIBIT INDEX Exhibit Number Description 99.1 Press release of Qualstar Corporation dated November 13, 2007. 3 EX-99.1 2 a5545809-ex991.txt EXHIBIT 99.1 Exhibit 99.1 Qualstar Reports Fiscal 2008 First Quarter Results SIMI VALLEY, Calif.--(BUSINESS WIRE)--Nov. 13, 2007--Qualstar(R) Corporation (Nasdaq: QBAK), a manufacturer of automated tape storage solutions, today reported financial results for the first quarter of fiscal 2008 ended September 30, 2007. Fiscal 2008 First Quarter Financial Results Revenues for the first quarter of fiscal 2008 were $5.3 million, compared to $4.7 million for the same quarter of fiscal 2007, an increase of $673,000 or 14.4%. Loss from operations was $602,000 compared to a $960,000 in fiscal 2007. Net loss was $206,000, or $(0.02) per basic and diluted share, compared to a net loss of $579,000, or $(0.05) per basic and diluted share for the first quarter of fiscal 2007. Tape library segment revenues were $4.6 million for the quarter up from $3.9 million for the same quarter of the prior year. The increase was due primarily to sales of the Company's XLS, RLS and TLS tape libraries and drives along with higher media revenues. Power supply segment revenues decreased 8.0%, or $63,000, to $724,000 for the quarter from $787,000 for the same quarter of the prior year. Gross margin in the fiscal 2008 first quarter was 30.5 percent, compared to 27.9 percent in the year-ago quarter. The increase in gross margin percentage was primarily attributable to better material management partially offset by lower overhead absorption. Research and development expenses for the first quarter of fiscal 2008 were $728,000, or 13.7 percent of revenues, compared to $750,000 or 16.1 percent of revenues, for the first quarter of fiscal 2007. Sales and marketing expenses were $759,000, or 14.2 percent of revenues, compared to $768,000 or 16.5 percent of revenues, in the corresponding period last year. General and administrative expenses in the first quarter of fiscal 2008 were $739,000 or 13.9 percent of revenues, compared to $744,000, or 16.0 percent of revenues, for the same period last year. Cash, cash equivalents and marketable securities were $33.7 million at September 30, 2007, compared with $33.3 million at June 30, 2007. Days' sales outstanding (DSO) were approximately 56 days at September 30, 2007, compared to approximately 42 days at September 30, 2006. Inventory turns were 2.5 times on an annualized basis for the three-month period ended September 30, 2007, compared to 1.8 times for the period ended September 30, 2006. "Our first quarter results were within expectations," said Bill Gervais, president and chief executive officer of Qualstar. "While the year-over-year revenue growth generated in the quarter was not enough to push the business to profitability, I continue to be encouraged by our ability to carefully manage expenses and conserve cash. Revenues were driven by our core library business and bolstered by our XLS product line, which continues to gain traction in the marketplace. During the quarter we shipped eight additional XLS units and we are pleased to report that all units in the field are meeting or exceeding our customers' expectations. We continue to see the XLS appealing to a broad array of end users and we are not reliant on any single business segment or application to drive demand. Moreover, recent international marketing activities have expanded our XLS pipeline to include European-based customers, which we believe will be an important source of demand for XLS in fiscal 2008 and beyond." Mr. Gervais concluded, "Our N2Power business is poised to resume its growth after several quarters of declining revenues as we transitioned from the 250-watt unit to a new 275-watt product line. This new product line offers more power in a smaller package than any other competing product on the market today and we believe N2Power products are positioned to excel in the future due to strong worldwide demand for more energy efficient electronic devices." Qualstar Corporation Conference Call Company management will hold a conference call to discuss its fiscal 2008 first quarter 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 for 30 days. Additionally, participants can dial into the live conference call by calling 800-240-6709 or 303-262-2130. An audio replay will be available through November 20, 2007, by calling 800-405-2236 or 303-590-3000, and entering passcode 11101938. About Qualstar Corporation Qualstar is a manufacturer of automated tape libraries used for backup, archival storage, data protection and disaster recovery. Its products are known throughout the world for their rugged, Simply Reliable design yielding years of trouble-free operation. Qualstar tape libraries are sold, installed and supported worldwide by selected Value Added Resellers, Systems Integrators, Distributors and Original Equipment Manufacturers. Qualstar also designs, manufactures and sells ultra small, high efficiency open-frame switching power supplies under the "N2Power" brand name to OEMs. Qualstar Corporation is publicly traded on the NASDAQ National Market under the symbol QBAK. More information is available at www.qualstar.com or by phone at 805-583-7744. Forward-Looking Statements Statements in this press release 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 tape libraries which incorporate LTO and SAIT tape drives; whether the Company's initiatives to maintain and increase sales of its tape libraries based on AIT tape technology will be successful; whether development of the Company's new enterprise-class tape libraries will be completed on time and achieve customer acceptance; rescheduling or cancellation of customer orders; unexpected shortages of critical components; unexpected product design or quality problems; and, adverse changes in market demand for tape libraries or other Qualstar 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, 2006, and to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its Form 10-K and its most recent Quarterly Report on Form 10-Q. QUALSTAR CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In Thousands, except per share data) (Unaudited) ------------------ Three Months Ended September 30, 2007 2006 ------------------ Net revenues $ 5,332 $ 4,659 Cost of goods sold 3,708 3,357 ------------------ Gross profit 1,624 1,302 ------------------ Operating expenses: Research and development 728 750 Sales and marketing 759 768 General and administrative 739 744 ------------------ Total operating expenses 2,226 2,262 ------------------ Loss from operations (602) (960) Investment Income 413 381 ------------------ Loss before income taxes (189) (579) Provision for income taxes 17 ------------------ Net loss $ (206) $ (579) ================== Loss per share: Basic $ (0.02) $ (0.05) ================== Diluted $ (0.02) $ (0.05) ================== Shares used to compute loss per share: Basic 12,253 12,253 ================== Diluted 12,253 12,253 ================== QUALSTAR CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) September 30, June 30, 2007 2007 ASSETS (Unaudited) (Audited) ----------------------- Current assets: Cash and cash equivalents $ 8,602 $ 7,697 Marketable securities, short-term 8,377 9,574 Receivables, net of allowances of $129 as of September 30, 2007 and $170 as of June 30, 2007 3,231 3,462 Inventories, net 5,707 5,928 Prepaid expenses and other current assets 767 576 Prepaid income taxes 134 137 ----------------------- Total current assets 26,818 27,374 ----------------------- Property and equipment, net 590 601 Marketable securities, long-term 16,703 15,994 Other assets 94 94 ----------------------- Total assets $44,205 $44,063 ======================= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,127 $ 654 Accrued payroll and related liabilities 299 455 Other accrued liabilities 1,008 1,113 ----------------------- Total current liabilities 2,434 2,222 ----------------------- Other long-term liabilities 45 - Commitments and contingencies Shareholders' equity: Common stock, no par value; 50,000 shares authorized, 12,253 shares issued and outstanding as of September 30, 2007 and June 30, 2007 18,626 18,593 Accumulated other comprehensive loss 39 (55) Retained earnings 23,061 23,303 ----------------------- Total shareholders' equity 41,726 41,841 ----------------------- Total liabilities and shareholders' equity $44,205 $44,063 ======================= CONTACT: Qualstar Corporation William J. Gervais, President & CEO 805-583-7744 gervais@qualstar.com or Financial Relations Board Lasse Glassen, 213-486-6546 (General Information) lglassen@frbir.com -----END PRIVACY-ENHANCED MESSAGE-----