Qualstar Corporation Reports Second Quarter 2024 Results
Qualstar (OTC: QBAK) reported its Q2 2024 financial results, highlighting a 26% increase in revenue to $2.37 million compared to Q2 2023. The company achieved positive Adjusted EBITDA of $38,000 for the quarter, an improvement from ($197,000) in the same period last year. However, Qualstar reported a net loss of $327,000 or $0.23 per share. For the first half of 2024, revenue increased by 14.3% to $4.65 million.
The company's power supplies business saw growth, offset by lower revenues from the data storage segment. Qualstar warned of an expected significant revenue reduction in its power supplies business for the remainder of 2024 due to the completion of existing orders from a legacy customer. The company has implemented cost reductions to target breakeven operations. Qualstar ended the quarter with $2.4 million in cash and cash equivalents and continues to pursue acquisitions in the data management software and hardware systems spaces.
Qualstar (OTC: QBAK) ha riportato i risultati finanziari del Q2 2024, evidenziando un aumento del 26% del fatturato a 2,37 milioni di dollari rispetto al Q2 2023. L'azienda ha ottenuto un EBITDA rettificato positivo di 38.000 dollari per il trimestre, un miglioramento rispetto ai ($197.000) nello stesso periodo dell’anno scorso. Tuttavia, Qualstar ha riportato una perdita netta di 327.000 dollari, ovvero 0,23 dollari per azione. Nella prima metà del 2024, il fatturato è aumentato del 14,3% a 4,65 milioni di dollari.
Il business delle alimentazioni elettriche dell'azienda ha visto una crescita, compensata da ricavi più bassi nel segmento dello stoccaggio dei dati. Qualstar ha avvertito di una riduzione significativa dei ricavi nel suo settore delle alimentazioni elettriche per il resto del 2024 a causa del completamento di ordini esistenti da un cliente storico. L'azienda ha implementato riduzioni dei costi per mirare a operazioni in pareggio. Qualstar ha chiuso il trimestre con 2,4 milioni di dollari in contante e equivalenti di cassa e continua a perseguire acquisizioni nel settore della gestione dei dati e dei sistemi hardware.
Qualstar (OTC: QBAK) informó sobre sus resultados financieros del Q2 2024, destacando un incremento del 26% en los ingresos a 2.37 millones de dólares en comparación con el Q2 2023. La compañía logró un EBITDA ajustado positivo de 38,000 dólares para el trimestre, una mejora respecto a (-197,000 dólares) en el mismo periodo del año pasado. Sin embargo, Qualstar reportó una pérdida neta de 327,000 dólares o 0.23 dólares por acción. En la primera mitad de 2024, los ingresos aumentaron un 14.3% a 4.65 millones de dólares.
El negocio de fuentes de energía de la compañía vio crecimiento, compensado por menores ingresos en el segmento de almacenamiento de datos. Qualstar advirtió sobre una reducción significativa de ingresos en su negocio de fuentes de energía para el resto de 2024 debido a la finalización de pedidos existentes de un cliente antiguo. La empresa ha implementado reducciones de costos para apuntar a operaciones de equilibro. Qualstar terminó el trimestre con 2.4 millones de dólares en efectivo y equivalentes de efectivo y continúa buscando adquisiciones en el espacio de software y sistemas de gestión de datos.
Qualstar (OTC: QBAK)는 2024년 2분기 재무 결과를 보고하며 매출이 26% 증가하여 237만 달러에 달했다고 발표했습니다. 이 회사는 분기 동안 38,000달러의 조정 EBITDA를 기록하였으며, 이는 지난해 같은 기간의 (-197,000달러)에서 개선된 수치입니다. 그러나 Qualstar는 327,000달러의 순손실을 기록했으며, 이는 주당 0.23달러에 해당합니다. 2024년 상반기 동안 매출은 14.3% 증가한 465만 달러에 도달했습니다.
회사의 전원 공급 시스템 사업은 성장세를 보였으나, 데이터 저장 부문에서 매출이 감소했습니다. Qualstar은 현재 주문 완료로 인해 2024년 나머지 기간 동안 전원 공급 사업부의 매출이 크게 줄어들 것으로 예상한다고 경고했습니다. 회사는 손익 분기점을 목표로 비용 절감을 시행했습니다. Qualstar은 분기를 마감하며 240만 달러의 현금 및 현금성 자산을 보유하고 있으며, 데이터 관리 소프트웨어 및 하드웨어 시스템 분야에서 인수합병을 계속 추진하고 있습니다.
Qualstar (OTC: QBAK) a annoncé ses résultats financiers du deuxième trimestre 2024, mettant en évidence une augmentation de 26% des revenus atteignant 2,37 millions de dollars par rapport au deuxième trimestre 2023. L'entreprise a enregistré un EBITDA ajusté positif de 38 000 dollars pour le trimestre, une amélioration par rapport à (-197 000 dollars) lors de la même période l'année précédente. Cependant, Qualstar a signalé une perte nette de 327 000 dollars ou 0,23 dollar par action. Pour le premier semestre de 2024, le chiffre d'affaires a augmenté de 14,3% atteignant 4,65 millions de dollars.
Le secteur des alimentations électriques de l'entreprise a connu une croissance, compensée par des revenus plus faibles dans le segment du stockage de données. Qualstar a prévenu d'une réduction significative des revenus dans son secteur des alimentations électriques pour le reste de 2024 en raison de l'achèvement des commandes existantes d'un client historique. L'entreprise a mis en œuvre des réductions de coûts pour viser un équilibre opérationnel. Qualstar a terminé le trimestre avec 2,4 millions de dollars en espèces et équivalents de liquidités et continue de rechercher des acquisitions dans le domaine des logiciels et systèmes de gestion des données.
Qualstar (OTC: QBAK) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und einen Umsatzanstieg von 26% auf 2,37 Millionen Dollar im Vergleich zum 2. Quartal 2023 hervorgehoben. Das Unternehmen erreichte ein positives bereinigtes EBITDA von 38.000 Dollar für das Quartal, eine Verbesserung gegenüber (-197.000 Dollar) im gleichen Zeitraum des Vorjahres. Qualstar meldete jedoch einen Nettoverlust von 327.000 Dollar oder 0,23 Dollar pro Aktie. Für das erste Halbjahr 2024 stieg der Umsatz um 14,3% auf 4,65 Millionen Dollar.
Das Geschäft mit Stromversorgungen des Unternehmens verzeichnete Wachstum, das durch niedrigere Einnahmen im Bereich Datenspeicherung ausgeglichen wurde. Qualstar warnte vor einer erheblichen Reduktion der Einnahmen im Bereich der Stromversorgung für den Rest des Jahres 2024 aufgrund des Abschlusses bestehender Aufträge von einem Bestandskunden. Das Unternehmen hat Kostensenkungen umgesetzt, um die Betriebsbilanz zu erreichen. Qualstar schloss das Quartal mit 2,4 Millionen Dollar in Bargeld und Barmitteln ab und verfolgt weiterhin Akquisitionen im Bereich der Datenmanagement-Software und -Hardware.
- 26% increase in Q2 2024 revenue compared to Q2 2023
- Positive Adjusted EBITDA of $38,000 in Q2 2024, improved from ($197,000) in Q2 2023
- 14.3% increase in revenue for the first half of 2024 compared to the first half of 2023
- $2.4 million in cash and cash equivalents at the end of Q2 2024
- Net loss of $327,000 in Q2 2024, increased from $277,000 in Q2 2023
- Expected significant revenue reduction in power supplies business for the remainder of 2024
- Lower revenues from data storage business compared to the previous year
- Gross margin decreased to 22.1% in Q2 2024 from 23.0% in Q2 2023
Achieved Positive Adjusted EBITDA for the Quarter
Consolidated Financial Highlights (Unaudited) | |||||||||||||||||||||||||||
(Amounts in thousands except per share data and percentages) | |||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
Consolidated Financial Results | 2024 | 2023 | $ ∆ | % ∆ | 2024 | 2023 | $ ∆ | % ∆ | |||||||||||||||||||
Revenues | $ | 2,366 | $ | 1,878 | $ | 488 | 26.0 | % | $ | 4,653 | $ | 4,070 | $ | 583 | 14.3 | % | |||||||||||
Gross profit | $ | 523 | $ | 432 | $ | 91 | 21.1 | % | $ | 1,223 | $ | 1,086 | $ | 137 | 12.6 | % | |||||||||||
Gross margin | 22.1 | % | 23.0 | % | 26.3 | % | 26.7 | % | |||||||||||||||||||
(Loss) from operations | $ | (292) | $ | (271) | $ | (488) | $ | (328) | |||||||||||||||||||
Net (loss) | $ | (327) | $ | (277) | $ | (427) | $ | (290) | |||||||||||||||||||
Earnings (loss) per share | $ | (0.23) | $ | (0.17) | $ | (0.30) | $ | (0.18) | |||||||||||||||||||
Adjusted EBITDA | $ | 38 | $ | (197) | $ | (107) | $ | (223) | |||||||||||||||||||
Key Highlights:
- Revenue increased
26% for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, and increased14% for the first half of 2024 compared to the first half of 2023. Revenues were up for our power supplies business on shipments of more units in 2024 versus 2023, offset slightly by lower revenues from our data storage business this year compared to last year. For the remainder of 2024 we expect a significant revenue reduction in our power supplies business due to the completion of existing orders in the first half of 2024 from a legacy customer. We anticipate the annual revenue run-rate of our power supplies business will decline substantially. We have made cost reductions that correspond to the lower sales forecast in order to target operating at breakeven. - Net losses for the three- and six-month periods ended June 30, 2024, were impacted by certain non-routine expenses and non-cash charges. We use an Adjusted EBITDA financial measure to understand and evaluate our core operating performance. Adjusted EBITDA for the quarter ended June 30, 2024, improved to
$38,000 $197,000 $107,000 $223,000 - In August 2024, our independent registered public accounting firm completed its audits of our consolidated financial statements for the years ended December 31, 2023 and 2022.
- We continue to pursue acquisitions of companies in the data management software and hardware systems spaces.
- We ended the quarter with
$2.4 million
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
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 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 (Loss) to Adjusted EBITDA for the three- and six-month periods ended June 30, 2024 and 2023:
Three Months Ended | Six Month Ended | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands) | ||||||||||||
Net (loss) | $ | (327) | $ | (277) | $ | (427) | $ | (290) | ||||
Adjustments to arrive at earnings before interest, taxes, | ||||||||||||
Interest income | (18) | (2) | (35) | (4) | ||||||||
Depreciation and amortization expense | 9 | 9 | 19 | 19 | ||||||||
EBITDA | (336) | (270) | (443) | (275) | ||||||||
Adjustments to arrive at Adjusted EBITDA: | ||||||||||||
Severance compensation | 57 | — | 57 | 9 | ||||||||
Provisions for inventory net realizable value | 218 | 65 | 228 | 77 | ||||||||
(Gains) losses on marketable securities, net | 45 | 4 | (40) | (26) | ||||||||
(Gains) losses on foreign currency transactions, net | 8 | 4 | 14 | (8) | ||||||||
Stock-based compensation expense | 46 | — | 77 | — | ||||||||
Adjusted EBITDA | $ | 38 | $ | (197) | $ | (107) | $ | (223) | ||||
Contact Information:
Steven N. Bronson
Chief Executive Officer
Qualstar Corporation
805-617-4419
IR@Qualstar.com
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SOURCE Qualstar Corporation
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