Qualstar Corporation Reports Second Quarter 2025 Results
Qualstar Corporation (OTC: QBAK), a data storage and power solutions provider, reported mixed Q2 2025 results. Despite a 40% year-over-year revenue decline to $1.43 million due to lost power-supply customer business, the company achieved significant profitability improvements.
Key highlights include gross margin expansion to 34% from 22% in Q2 2024, net income of $204,000 ($0.14 per share) compared to prior year loss of $327,000, and a strong cash position of $2.2 million with zero debt. The company is actively pursuing acquisitions and strategic alliances to expand its data management capabilities and drive recurring revenue through complementary software offerings.
Qualstar Corporation (OTC: QBAK), fornitore di soluzioni per l'archiviazione dati e l'alimentazione, ha riportato risultati contrastanti nel secondo trimestre del 2025. Nonostante un calo del fatturato del 40% su base annua a 1,43 milioni di dollari a causa della perdita di clienti nel settore delle alimentazioni, l'azienda ha registrato significativi miglioramenti nella redditività.
I punti salienti includono un margine lordo aumentato al 34% rispetto al 22% del secondo trimestre 2024, un utile netto di 204.000 dollari (0,14 dollari per azione) rispetto alla perdita di 327.000 dollari dell'anno precedente, e una solida posizione di cassa di 2,2 milioni di dollari senza debiti. L’azienda sta attivamente perseguendo acquisizioni e alleanze strategiche per ampliare le capacità di gestione dati e incrementare i ricavi ricorrenti tramite offerte software complementari.
Qualstar Corporation (OTC: QBAK), proveedor de soluciones de almacenamiento de datos y energía, reportó resultados mixtos en el segundo trimestre de 2025. A pesar de una caída del 40% en los ingresos interanuales a 1.43 millones de dólares debido a la pérdida de clientes en el sector de fuentes de alimentación, la compañía logró importantes mejoras en su rentabilidad.
Los aspectos más destacados incluyen una expansión del margen bruto al 34% desde el 22% en el segundo trimestre de 2024, un ingreso neto de 204,000 dólares (0.14 dólares por acción) en comparación con la pérdida de 327,000 dólares del año anterior, y una sólida posición de efectivo de 2.2 millones de dólares sin deuda. La empresa está activamente buscando adquisiciones y alianzas estratégicas para ampliar sus capacidades de gestión de datos y fomentar ingresos recurrentes a través de ofertas complementarias de software.
Qualstar Corporation (OTC: QBAK)는 데이터 저장 및 전원 솔루션 제공업체로서 2025년 2분기 실적이 엇갈렸습니다. 전원 공급 고객 손실로 인해 전년 동기 대비 매출이 40% 감소하여 143만 달러를 기록했지만, 회사는 수익성에서 큰 개선을 이루었습니다.
주요 내용으로는 2024년 2분기 22%에서 총이익률이 34%로 확대되었고, 순이익 20만 4천 달러(주당 0.14달러)를 기록해 전년도 32만 7천 달러 손실에서 흑자로 전환했으며, 부채 없는 220만 달러의 강력한 현금 보유를 유지하고 있습니다. 회사는 데이터 관리 역량을 확장하고 보완적인 소프트웨어 제품을 통해 반복 수익을 창출하기 위해 인수 및 전략적 제휴를 적극적으로 추진하고 있습니다.
Qualstar Corporation (OTC : QBAK), fournisseur de solutions de stockage de données et d'alimentation, a publié des résultats mitigés pour le deuxième trimestre 2025. Malgré une baisse du chiffre d'affaires de 40 % en glissement annuel à 1,43 million de dollars en raison de la perte de clients dans le secteur des alimentations électriques, la société a réalisé des améliorations significatives de sa rentabilité.
Les points clés incluent une augmentation de la marge brute à 34 % contre 22 % au T2 2024, un résultat net de 204 000 dollars (0,14 dollar par action) comparé à une perte de 327 000 dollars l'année précédente, ainsi qu'une solide position de trésorerie de 2,2 millions de dollars sans dettes. L'entreprise poursuit activement des acquisitions et des alliances stratégiques pour renforcer ses capacités de gestion des données et générer des revenus récurrents via des offres logicielles complémentaires.
Qualstar Corporation (OTC: QBAK), ein Anbieter von Datenspeicher- und Stromversorgungslösungen, meldete gemischte Ergebnisse für das zweite Quartal 2025. Trotz eines 40%igen Umsatzrückgangs im Jahresvergleich auf 1,43 Millionen US-Dollar aufgrund des Verlusts von Kunden im Bereich Stromversorgung erzielte das Unternehmen erhebliche Verbesserungen bei der Profitabilität.
Zu den wichtigsten Highlights zählen eine Ausweitung der Bruttomarge auf 34% gegenüber 22% im zweiten Quartal 2024, ein Nettoeinkommen von 204.000 US-Dollar (0,14 US-Dollar pro Aktie) im Vergleich zum Vorjahresverlust von 327.000 US-Dollar sowie eine starke Barposition von 2,2 Millionen US-Dollar bei null Schulden. Das Unternehmen verfolgt aktiv Akquisitionen und strategische Allianzen, um seine Datenmanagement-Fähigkeiten zu erweitern und wiederkehrende Umsätze durch ergänzende Softwareangebote zu steigern.
- Gross margin significantly expanded to 34% from 22% year-over-year
- Achieved net income of $204,000 vs previous year loss of $327,000
- Strong balance sheet with $2.2 million cash and no debt
- Higher sales reported in data storage products segment
- Revenue declined 40% year-over-year to $1.43 million
- Loss of major power-supply customer impacting overall sales
- Negative Adjusted EBITDA of $7,000 in Q2 2025
Gross Margin Expands to
IRVINE, Calif., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Qualstar Corporation (OTC: QBAK), a trusted provider of scalable data storage and high-efficiency power solutions, today announced financial results for the second quarter ended June 30, 2025.
Qualstar’s second quarter results reflect meaningful gross margin expansion, continued profitability, and a solid cash position. While revenue declined year-over-year due to the previously disclosed loss of a large power-supply customer, the Company remains focused on executing its strategic initiatives and is well-positioned to capitalize on demand for secure, long-term data storage solutions.
Second Quarter 2025 Key Highlights
- Gross margin expanded to
34% from22% in Q2 2024, reflecting improved product and customer mix. - Net income totaled
$204,000 , or$0.14 per share, an improvement compared to net loss of$327,000 , or ($0.23) per share in Q2 2024. - Cash and cash equivalents totaled
$2.2 million at June 30, 2025, with no debt. - Actively pursuing acquisitions and strategic alliances aimed at expanding Qualstar’s data management capabilities and adding complementary software to drive recurring revenue, while creating opportunities to enhance the value of its installed base through complementary product offerings.
Management Commentary
“Our second quarter results reflect the benefits of a disciplined operating model, with gross margin expansion and positive net income despite lower year‑over‑year revenue,” said Steven Bronson, CEO and President of Qualstar. “With over four decades of experience in magnetic tape storage and a global footprint, Qualstar is a trusted enabler of the growing data economy, well-positioned to capture expanding market opportunities and execute on strategic initiatives that include complementary software offerings and targeted acquisitions to drive recurring revenue, scale the business, and deliver long‑term shareholder value.”
Consolidated Financial Results (Unaudited)
(Amounts in thousands except per share data and percentages)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
| 2025 | 2024 | $ ∆ | % ∆ | 2025 | 2024 | $ ∆ | % ∆ | |||||||||||||||||||||||
| Revenues | $ | 1,430 | $ | 2,366 | $ | (936 | ) | (39.6 | )% | $ | 3,089 | $ | 4,653 | $ | (1,564 | ) | (33.6 | )% | ||||||||||||
| Gross profit | $ | 482 | $ | 523 | $ | (41 | ) | (7.8 | )% | $ | 1,091 | $ | 1,223 | $ | (132 | ) | (10.8 | )% | ||||||||||||
| Gross margin | 33.7 | % | 22.1 | % | 35.3 | % | 26.3 | % | ||||||||||||||||||||||
| Income (loss) from operations | $ | 5 | $ | (292 | ) | $ | 140 | $ | (488 | ) | ||||||||||||||||||||
| Net income (loss) | $ | 204 | $ | (327 | ) | $ | 387 | $ | (427 | ) | ||||||||||||||||||||
| Earnings (loss) per share | $ | 0.14 | $ | (0.23 | ) | $ | 0.27 | $ | (0.30 | ) | ||||||||||||||||||||
| Adjusted EBITDA | $ | (7 | ) | $ | (19 | ) | $ | 55 | $ | (163 | ) | |||||||||||||||||||
- Revenue decreased
40% for the three months ended June 30, 2025, compared to the same period in 2024, and decreased34% for the first half of 2025 compared to the first half of 2024. The revenue declines were driven by lower shipments of power supply products, partially offset by higher sales of data storage products in the second quarter of 2025. - Gross margin improved to
34% in Q2 2025, up from22% in the prior‑year quarter. For the first half of 2025, gross margin rose to35% from26% in the first half of 2024, primarily reflecting a more favorable product, service, and customer mix. - Net income for the three‑ and six‑month periods ended June 30, 2025, reflected lower revenue and gross profit, reduced operating expenses, and certain non‑routine expenses, credits, and non‑cash items.
- Adjusted EBITDA for the three months ended June 30, 2025 and 2024 was
$(7,000) and$(19,000) , respectively, and for the six months ended June 30, 2025 and 2024 was$55,000 and$(163,000) , respectively. - Cash and cash equivalents totaled
$2.2 million at the end of the quarter.
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 and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Net income (loss) | $ | 204 | $ | (327 | ) | $ | 387 | $ | (427 | ) | ||||||
| Adjustments to arrive at earnings before interest, taxes, depreciation, and amortization (EBITDA): | ||||||||||||||||
| Interest income | (35 | ) | (19 | ) | (75 | ) | (36 | ) | ||||||||
| Depreciation and amortization expense | 2 | 9 | 4 | 19 | ||||||||||||
| EBITDA | 171 | (337 | ) | 315 | (444 | ) | ||||||||||
| Adjustments to arrive at Adjusted EBITDA: | ||||||||||||||||
| Employee Retention Credits | (94 | ) | — | (239 | ) | — | ||||||||||
| Provisions for inventory net realizable value | 33 | 218 | 57 | 229 | ||||||||||||
| (Gains) losses on marketable securities, net | (156 | ) | 46 | (145 | ) | (40 | ) | |||||||||
| (Gains) losses on foreign currency transactions, net | (8 | ) | 8 | (27 | ) | 15 | ||||||||||
| Stock-based compensation expense | 47 | 46 | 93 | 77 | ||||||||||||
| Adjusted EBITDA | $ | (7 | ) | $ | (19 | ) | $ | 55 | $ | (163 | ) | |||||
Contact Information: Steven N. Bronson Chief Executive Officer Qualstar Corporation 805-617-4419 IR@Qualstar.com
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