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Thursday, Nov 30, 2023

Qualstar Misses Earnings Following Proxy Battle

Qualstar Corp., a maker of data storage and power supply systems, failed to meet earnings expectations in its fiscal first quarter, a miss management blamed on a summer proxy battle. The Simi Valley company reported a net loss of $1.9 million (16 cents a share) for the quarter ended Sept. 30, compared with $57,000 (0 cents) in the same period a year earlier. Revenue decreased by 25 percent to $3.5 million. Analysts forecast a loss of 8 cents a share on revenue of $3.56 million, according to Thomson Financial Network. Qualstar Chief Executive Larry Firestone attributed the poor financials to lingering effects of a proxy battle from June in which a major investor had attempted to replace the board of directors. However, he said the maker of computer-tape storage equipment and high-efficiency power systems is going in the right direction. “With the recently initiated strategic plan and new management in place we have taken significant steps to restructure the company and lower our breakeven with much more to come,” said Firestone, in a prepared statement. “We are expanding Qualstar’s portfolio of products across its power conversion and storage markets and are targeting a variety of new market opportunities to drive long-term growth and profitability.” Shares in Qualstar gained 1 cent to close at $1.36 on the Nasdaq.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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