Qualstar Corp (QBAK) SEC Filing 8-K Material Event for the period ending Tuesday, May 7, 2019

Qualstar Corp

CIK: 758938 Ticker: QBAK

Exhibit 99.1


Qualstar Reports Fiscal 2019 First Quarter Results


Simi Valley, CA, May 7, 2019Qualstar Corporation (NASDAQ: QBAK), a leading manufacturer of data storage solutions and high-efficiency power supplies, today announced its financial results for the three months ended March 31, 2019.


(All amounts are in thousands, except per share data):


Results for the Three Months Ended March 31, 2019 vs. 2018



Net revenue decreased 2.7% to $2,856 from $2,935


Total operating expenses decreased 6.4% to $784 from $838


Net income of $141 or $0.07 per basic and diluted share vs. net income of $590 or $0.29 per basic and $0.28 per diluted share


Highlights for the Three Months Ended March 31, 2019



Strong balance sheet and no debt


Cash, restricted cash and cash equivalents decreased by 2.4% to $4,765 from $4,881 as of December 31, 2018


Data storage product revenue grew 51.7% to $783 from $516


Power supply revenue grew 4.2% to 1,370 from $1,315


“We are pleased with the growth in our Data Storage Product segment. We continue to expand our customer base and market share by providing a quality and competitive product offering,” according to Steven N. Bronson, President and CEO. “Our strong financial position enables us to support our channel partners by maintaining ample inventory to meet their needs in a timely fashion,” he continued.


Under the Stock Repurchase Program, 58,734 shares were repurchased during the three months ended March 31, 2019 and as of May 2, 2019 a total of 89,097 shares have been purchased since the program began. The program expires December 5, 2019.



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 or or by phone at 805-583-7744.


Cautionary Statement Concerning Forward-Looking Statements


Statements used in this press release that relate to future plans, events, financial results, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. These forward-looking statements are based upon the current expectations and beliefs of Qualstar's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Qualstar does not expect to, and disclaims any obligation to, publicly update any forward-looking statements whether as a result of new information, future events or otherwise. Qualstar, however, reserves the right to update such statements or any portion thereof at any time for any reason. In particular, the following factors, among others, could cause actual or future results to differ materially from those suggested by the forward-looking statements: Qualstar’s ability to successfully execute on its strategic plan and meet its long-term financial goals; Qualstar’s ability to successfully implement and recognize cost savings; Qualstar’s ability to develop and commercialize new products; industry and customer adoption and acceptance of Qualstar’s new products; Qualstar’s ability to increase sales of its products; the rescheduling or cancellation of customer orders; unexpected shortages of critical components; unexpected product design or quality problems; adverse changes in market demand for Qualstar’s products; increased competition and pricing pressure on Qualstar’s products; and the risks related to actions of activist shareholders, including the amount of related costs.





For further information on these and other cautionary statements, please refer to the risk factors discussed in Qualstar’s filings with the U.S. Securities and Exchange Commission including, but not limited to, Qualstar’s Annual Report on Form 10-K for the period ending December 31, 2018, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such Form 10-K, and any subsequently filed reports. All of Qualstar’s filings are available without charge through the SEC’s website ( or from Qualstar’s website (


Contact Information:

Steven N. Bronson

Chief Executive Officer

Qualstar Corporation




-Financial Tables to Follow-








  (In thousands, except per share data)




Three Months Ended

March 31,






Net revenues

  $ 2,856     $ 2,935  

Cost of goods sold

    1,936       1,507  

Gross profit

    920       1,428  

Operating expenses:



    123       121  

Sales and marketing

    308       295  

General and administrative

    353       422  

Total operating expenses

    784       838  

Income from operations

    136       590  

Other income

    5       -  

Income before income taxes

    141       590  

Provision for income taxes

    -       -  

Net Income

  $ 141     $ 590  

Earnings per share:



  $ 0.07     $ 0.29  


  $ 0.07     $ 0.28  

Shares used in per share calculation:



    1,971       2,048  


    1,971       2,101  








(In thousands, except share amounts)





March 31,



December 31,







Current assets:


Cash and cash equivalents

  $ 4,665     $ 4,781  

Restricted cash

    100       100  

Accounts receivables, net

    1,745       1,809  

Inventories, net

    2,775       2,897  

Prepaid expenses and other current assets

    188       180  

Total current assets

    9,473       9,767  

Non-current assets:


Property and equipment, net

    99       112  


    363       -  

Other assets

    132       119  

Total non-current assets

    594       231  

Total assets

  $ 10,067     $ 9,998  

Liabilities and Shareholders’ Equity


Current liabilities:


Accounts payable

  $ 943     $ 1,023  

Accrued payroll and related liabilities

    175       185  

Deferred service revenue, short-term

    740       736  

Lease liabilities, current

    229       -  

Other accrued liabilities

    524       559  

Total current liabilities

    2,611       2,503  

Long-term liabilities:


Other long-term liabilities

    40       40  

Lease liabilities, long term

    152       -  

Deferred service revenue

    124       127  

Total long-term liabilities

    316       167  

Total liabilities

    2,927       2,670  

Shareholders’ equity:


Preferred stock, no par value; 5,000,000 shares authorized; no shares issued

    -       -  

Common stock, no par value; 50,000,000 shares authorized, shares issued and outstanding 1,971,283 at March 31, 2019 and 2,030,017 shares at December 31, 2018

    19,097       19,426  

Accumulated deficit





Total shareholders’ equity

    7,140       7,328  

Total liabilities and shareholders’ equity

  $ 10,067     $ 9,998  



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Qualstar Corp provided additional information to their SEC Filing as exhibits

Ticker: QBAK
CIK: 758938
Form Type: 8-K Corporate News
Accession Number: 0001437749-19-008991
Submitted to the SEC: Tue May 07 2019 4:12:40 PM EST
Accepted by the SEC: Tue May 07 2019
Period: Tuesday, May 7, 2019
Industry: Magnetic And Optical Recording Media
  1. Earnings Release
  2. Financial Exhibit

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