Qualstar Corporation Reports Third Quarter 2024 Results
Qualstar (QBAK) reported its Q3 2024 financial results, showing significant revenue declines. Revenue decreased 57% to $1.36 million for Q3 2024 compared to Q3 2023, and fell 17% to $6.01 million for the nine months ended September 30, 2024. Despite revenue challenges, gross margin improved to 41% in Q3 2024 from 31% in Q3 2023. The company reported a net loss of $34,000 in Q3 2024 compared to a net income of $161,000 in Q3 2023. The decline in revenues was primarily attributed to lower shipments of power supplies products and the loss of a major customer. The company ended the quarter with $2.2 million in cash.
Qualstar (QBAK) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando significative diminuzioni dei ricavi. I ricavi sono diminuiti del 57% a 1,36 milioni di dollari per il Q3 2024 rispetto al Q3 2023, e sono scesi del 17% a 6,01 milioni di dollari per i nove mesi terminati il 30 settembre 2024. Nonostante le difficoltà nei ricavi, il margine lordo è migliorato portandosi al 41% nel Q3 2024 rispetto al 31% nel Q3 2023. L'azienda ha registrato una perdita netta di 34.000 dollari nel Q3 2024 rispetto a un utile netto di 161.000 dollari nel Q3 2023. Il calo dei ricavi è stato principalmente attribuito a minori spedizioni di prodotti per alimentatori e alla perdita di un grosso cliente. L'azienda ha chiuso il trimestre con 2,2 milioni di dollari in contanti.
Qualstar (QBAK) reportó sus resultados financieros del tercer trimestre de 2024, mostrando importantes caídas en los ingresos. Los ingresos disminuyeron un 57% a 1,36 millones de dólares en el Q3 2024 en comparación con el Q3 2023, y cayeron un 17% a 6,01 millones de dólares para los nueve meses finalizados el 30 de septiembre de 2024. A pesar de los desafíos en los ingresos, el margen bruto mejoró al 41% en el Q3 2024 desde el 31% en el Q3 2023. La empresa reportó una pérdida neta de 34,000 dólares en el Q3 2024 en comparación con una ganancia neta de 161,000 dólares en el Q3 2023. La disminución de los ingresos fue atribuida principalmente a menores envíos de productos de fuentes de alimentación y la pérdida de un cliente importante. La empresa finalizó el trimestre con 2,2 millones de dólares en efectivo.
Qualstar (QBAK)는 2024년 3분기 재무 실적을 발표하며 상당한 매출 감소를 보였습니다. 2024년 3분기의 매출은 2023년 3분기 대비 57% 감소하여 136만 달러에 달했고, 2024년 9개월(9월 30일 기준) 매출은 17% 감소하여 601만 달러에 이르렀습니다. 매출 감소에도 불구하고, 2024년 3분기 총 마진은 2023년 3분기의 31%에서 41%로 개선되었습니다. 회사는 2024년 3분기에 34,000달러의 순손실을 보고했으며, 2023년 3분기에는 161,000달러의 순이익을 기록했습니다. 매출 감소는 주로 전원 공급 장치 제품의 배송 감소와 주요 고객의 상실 때문으로 분석됩니다. 회사는 220만 달러의 현금을 보유하며 분기를 종료했습니다.
Qualstar (QBAK) a annoncé ses résultats financiers du troisième trimestre 2024, montrant des baisses de revenus significatives. Les revenus ont diminué de 57 % pour atteindre 1,36 million de dollars au T3 2024 par rapport au T3 2023, et ont chuté de 17 % à 6,01 millions de dollars pour les neuf mois se terminant le 30 septembre 2024. Malgré ces défis en matière de revenus, la marge brute s'est améliorée, passant de 31 % au T3 2023 à 41 % au T3 2024. L'entreprise a enregistré une perte nette de 34 000 dollars au T3 2024, contre un bénéfice net de 161 000 dollars au T3 2023. La baisse des revenus a été principalement attribuée à une diminution des expéditions de produits d'alimentation et à la perte d'un client majeur. L'entreprise a terminé le trimestre avec 2,2 millions de dollars en liquidités.
Qualstar (QBAK) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die einen erheblichen Rückgang der Einnahmen zeigen. Die Einnahmen sind im dritten Quartal 2024 um 57 % auf 1,36 Millionen Dollar im Vergleich zum dritten Quartal 2023 gesunken und fielen im Zeitraum von neun Monaten bis zum 30. September 2024 um 17 % auf 6,01 Millionen Dollar. Trotz der Herausforderungen im Umsatz verbesserte sich die Bruttomarge im dritten Quartal 2024 auf 41 % von 31 % im dritten Quartal 2023. Das Unternehmen berichtete von einem Nettoverlust von 34.000 Dollar im dritten Quartal 2024 im Vergleich zu einem Nettoertrag von 161.000 Dollar im dritten Quartal 2023. Der Rückgang der Einnahmen wurde hauptsächlich auf niedrigere Lieferungen von Stromversorgungsprodukten und den Verlust eines wichtigen Kunden zurückgeführt. Das Unternehmen schloss das Quartal mit 2,2 Millionen Dollar in bar ab.
- Gross margin improved to 41% in Q3 2024 from 31% in Q3 2023
- Maintained strong cash position of $2.2 million
- Achieved operational efficiencies through lower production-related labor costs
- Revenue declined 57% year-over-year in Q3 2024
- Net loss of $34,000 in Q3 2024 compared to net income of $161,000 in Q3 2023
- Loss of a major customer in power supplies business
- Negative Adjusted EBITDA of $52,000 in Q3 2024 vs positive $200,000 in Q3 2023
- Expected significant revenue reduction in power supplies business for foreseeable future
Consolidated Financial Results (Unaudited) | |||||||||||||||||||||||||||
(Amounts in thousands except per share data and percentages) | |||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2024 | 2023 | $ ∆ | % ∆ | 2024 | 2023 | $ ∆ | % ∆ | ||||||||||||||||||||
Revenues | $ | 1,358 | $ | 3,142 | $ | (1,784) | (56.8) | % | $ | 6,011 | $ | 7,212 | $ | (1,201) | (16.7) | % | |||||||||||
Gross profit | $ | 552 | $ | 981 | $ | (429) | (43.7) | % | $ | 1,775 | $ | 2,067 | $ | (292) | (14.1) | % | |||||||||||
Gross margin | 40.6 | % | 31.2 | % | 29.5 | % | 28.7 | % | |||||||||||||||||||
Income (loss) from operations | $ | (44) | $ | 158 | $ | (532) | $ | (170) | |||||||||||||||||||
Net income (loss) | $ | (34) | $ | 161 | $ | (461) | $ | (129) | |||||||||||||||||||
Earnings (loss) per share | $ | (0.02) | $ | 0.10 | $ | (0.32) | $ | (0.08) | |||||||||||||||||||
Adjusted EBITDA | $ | (52) | $ | 200 | $ | (159) | $ | (23) | |||||||||||||||||||
Key Highlights:
- Revenue decreased
57% for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, and decreased17% for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. The declines in revenues were primarily due to lower shipments of our power supplies products in the 2024 periods compared to the 2023 periods, and to a lesser extent due to lower shipments of our data storage products this year compared to last year. We expect a significant revenue reduction in our power supplies business for the foreseeable future due to the loss of a large customer. - Gross margin percentage improved to
41% for the three months ended September 30, 2024, compared to31% for the three months ended September 30, 2023, and improved to30% for the nine months ended September 30, 2024, compared to29% for the nine months ended September 30, 2023. The gross margin percentage improvements were due to efficiencies resulting from lower production-related labor costs on personnel reductions, and favorable changes in our product mix. - Net losses for the three- and nine-month periods ended September 30, 2024, were impacted by revenue levels and also 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 three months ended September 30, 2024 was negative
$52,000 $200,000 $159,000 $23,000 - We continue to pursue acquisitions and partnerships with companies in the data management software and hardware systems spaces.
- We ended the quarter with
$2.2 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 (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- and nine-month periods ended September 30, 2024 and 2023:
Three Months Ended | Nine Month Ended | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
(in thousands) | ||||||||||||
Net income (loss) | $ | (34) | $ | 161 | $ | (461) | $ | (129) | ||||
Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA): | ||||||||||||
Interest income | (25) | (20) | (60) | (24) | ||||||||
Depreciation and amortization expense | 5 | 9 | 24 | 28 | ||||||||
EBITDA | (54) | 150 | (497) | (125) | ||||||||
Adjustments to arrive at Adjusted EBITDA: | ||||||||||||
Severance compensation | — | — | 57 | 9 | ||||||||
Provisions (recoveries) for inventory net realizable value | (65) | 33 | 163 | 110 | ||||||||
(Gains) losses on marketable securities, net | 33 | (14) | (7) | (40) | ||||||||
(Gains) losses on foreign currency transactions, net | (18) | 31 | (4) | 23 | ||||||||
Stock-based compensation expense | 52 | — | 129 | — | ||||||||
Adjusted EBITDA | $ | (52) | $ | 200 | $ | (159) | $ | (23) | ||||
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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