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Qualstar Corporation's Fourth Quarter 2024 Financial Performance Report

Qualstar Corporation, a prominent manufacturer specializing in data storage solutions and high-efficiency power supplies, has disclosed its financial results for the quarter and year ending December 31, 2024. This report emphasizes a considerable drop in revenue compared to the previous year, reflecting ongoing challenges within the organization.

Consolidated Financial Results Overview

For the three months concluding on December 31, 2024, Qualstar reported revenues totaling $2,033,000, representing a stark decrease of 40.3% from the $3,404,000 recorded in Q4 2023. On an annual basis, revenue fell by 24.2%, declining from $10,616,000 in 2023 to $8,044,000 in 2024. These notable reductions in revenue are attributed primarily to a decline in shipments from the power supplies segment, as well as a decrease in data storage product volumes.

Performance Analysis

The gross profit for the fourth quarter of 2024 was $683,000, down by 43.7% from the previous year's $1,213,000. This resulted in a gross margin of 33.6%, slightly down from 35.6% in Q4 2023. Annual gross profit followed a similar trajectory, declining to $2,458,000 from $3,280,000, yielding a gross margin consistent at approximately 30% for both years.

Operating results revealed a shift, with a recorded income of $62,000 from operations in Q4 2024, but a considerable loss of $468,000 over the year's total operations. Notably, the net income for the fourth quarter turned negative at $10,000, a sharp decline from $320,000 in the fourth quarter of 2023. For the full year, the company experienced a net loss of $471,000, contrasted with a net income of $191,000 in the prior year.

Business Segment Highlights

Despite these challenges, the data storage segment showcased resilience, generating a pre-tax income of $49,000 in Q4 and marking the eighth consecutive year of profitability within this unit. Conversely, the power supply segment suffered substantial losses, reporting a pre-tax loss of $56,000 for Q4 and a staggering $595,000 for the full year, largely impacted by the loss of a significant customer.

Adjusted EBITDA Trends

Adjusted EBIDTA for Q4 demonstrated an improved figure of $88,000, recovering from a negative $73,000 the previous year. Annual Adjusted EBITDA remained negative at $70,000, although it showed improvement over the negative $96,000 reported in 2023. This betterment signifies potential stabilization in operational performance moving forward.

Shareholder Actions

In a bid to boost shareholder value, Qualstar repurchased 471,161 shares of its stock from 2021 to 2024. Recently, the Board of Directors approved an extension of the stock repurchase program, allowing for an additional purchase of up to 100,000 shares through the end of 2026.

Forward-Looking Strategies

Looking ahead, Qualstar remains committed to pursuing strategic acquisitions and forming partnerships within both the data management hardware and software sectors. With $2.4 million in cash and equivalents at year-end, the organization is well-positioned to navigate the current market landscape.

For detailed financial statements, Qualstar encourages stakeholders to visit their website where annual and quarterly results are made accessible as soon as they are prepared.

About Qualstar Corporation

Founded in 1984, Qualstar Corporation specializes in manufacturing robust data storage and power solutions. The company’s data storage systems cater to various organizational needs, ensuring efficient and secure management of essential electronic data. Their power solutions are tailored for diverse OEM markets, driving functionality while reducing operational costs.

More information can be accessed at Qualstar or their power solution site, N2Power.