Qualstar Delivers Earnings of $0.13 Per Share
IRVINE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Qualstar Corporation (OTC Markets: QBAK), a leading manufacturer of data storage solutions and high-efficiency power supply solutions, today announced its financial results for the three months ended March 31, 2025.
Consolidated Financial Results (Unaudited)
(Amounts in thousands except per share data and percentages)
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | $ ∆ | % ∆ | ||||||||||||
| Revenues | $ | 1,659 | $ | 2,287 | $ | (628 | ) | (27.5 | )% | ||||||
| Gross profit | $ | 609 | $ | 700 | $ | (91 | ) | (13.0 | )% | ||||||
| Gross margin | 36.7 | % | 30.6 | % | |||||||||||
| Income (loss) from operations | $ | 135 | $ | (195 | ) | ||||||||||
| Net income (loss) | $ | 183 | $ | (100 | ) | ||||||||||
| Earnings (loss) per share | $ | 0.13 | $ | (0.07 | ) | ||||||||||
| Adjusted EBITDA | $ | 62 | $ | (144 | ) | ||||||||||
Key Highlights:
- Revenue decreased 28% for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, due primarily to lower shipments of our power supplies products in 2025 compared to 2024 and also in part to lower shipments of our data storage products. In our power supplies business, as previously reported, we experienced the loss of a large customer in 2024, and this is expected to significantly reduce revenues for the foreseeable future.
- Gross margin percentage improved to 37% for the three months ended March 31, 2025, compared to 31% for the three months ended March 31, 2024, due to changes in the mix of our products, services, and customers.
- Net income/loss for the three-month periods ended March 31, 2025 and 2024 was impacted by revenue levels and also by certain non-routine expenses and non-cash charges. As discussed below, we use an Adjusted EBITDA financial measure to evaluate our core operating performance. Adjusted EBITDA for the three months ended March 31, 2025 was $62,000, compared to negative $144,000 for the three months ended March 31, 2024.
- We continue to pursue acquisitions and partnerships with companies in the data management software and hardware systems spaces.
- We ended the quarter with $2.3 million in cash and cash equivalents.
“Qualstar is excited to announce an impressive earnings report, delivering $0.13 per share for the first quarter 2025. This robust performance underscores our commitment to driving growth and creating value for our shareholders,” said Steven Bronson, CEO & President.
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 Corporation, founded in 1984, manufactures and markets data storage system products and compact, high efficiency power solutions.
Our data storage systems are marketed under the Qualstar™ brand and include highly scalable automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in the network computing environment. Our products, sold through resellers, system integrators and OEMs, range from entry-level to enterprise and are a cost-effective solution for organizations requiring backup, recovery and archival storage of critical electronic information.
The Company’s power solutions, marketed under the N2Power™ brand, include standard, semi-custom and custom versions and provide OEM designers with increased functionality while reducing thermal loads and cooling requirements and lowering operating costs. These products are sold to OEMs in a wide range of markets, including telecom/networking equipment, audio/visual, industrial, gaming and medical.
More information is available at www.qualstar.com and www.n2power.com or by phone at 805-583-7744.
Non-GAAP Financial Measure
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (“GAAP”), we use the following non-GAAP financial measure: Adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted EBITDA for a particular period as net income (loss) before interest, taxes, depreciation and amortization, and as further adjusted for non-routine expenses that may not be indicative of our core business operating results such as severance compensation, provisions (recoveries) for inventory net realizable value, gains/losses on marketable securities, gains/losses on foreign currency transactions, and non-cash expenses such as stock-based compensation expense.
We use this non-GAAP financial measure for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that this non-GAAP financial measure provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business operating results. We believe that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting, and analyzing future periods. This non-GAAP financial measure also facilitates management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe this non-GAAP financial measure is useful to investors both because (1) is allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) it is used by our investors to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
The following table reconciles Net Income (Loss) to Adjusted EBITDA for the three months ended March 31, 2025 and 2024:
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Net income (loss) | $ | 183 | $ | (100 | ) | |||
| Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA): | ||||||||
| Interest income | (40 | ) | (16 | ) | ||||
| Depreciation and amortization expense | 2 | 10 | ||||||
| EBITDA | 145 | (106 | ) | |||||
| Adjustments to arrive at Adjusted EBITDA: | ||||||||
| Employee Retention Credits | (145 | ) | — | |||||
| Provisions for inventory net realizable value | 24 | 10 | ||||||
| (Gains) losses on marketable securities, net | 11 | (86 | ) | |||||
| (Gains) losses on foreign currency transactions, net | (19 | ) | 7 | |||||
| Stock-based compensation expense | 46 | 31 | ||||||
| Adjusted EBITDA | $ | 62 | $ | (144 | ) | |||
CONTACT: Contact Information: Steven N. Bronson Chief Executive Officer Qualstar Corporation 805-617-4419 IR@Qualstar.com
