Qualstar Reports Fourth Quarter Results

Tape library vendor Qualstar Corporation this week reported revenues of $51.6 million for the fiscal year ended June 30, 2001,which it says is a 4% increase over the $49.4 million reported last year.

Net income totaled $6.7 million compared to $7.8 million in fiscal 2000. The financial results for fiscal 2001 include a one-time non-cash charge for investment impairment of $1.1 million, equal to $0.05 per diluted share, recorded in the fourth quarter. Including the one-time tax-effected non-cash charge related to investment impairment, earnings per diluted share were $0.53, compared to $0.80 per share in fiscal 2000.

The Company also announced revenue of $11.1 million for the fourth quarter ended June 30, 2001, compared to $14.5 million for the same quarter last year. Net income for the fourth quarter, including the one-time non-cash charge for the impairment of investment, was $0.8 million, or $0.06 per diluted share compared with $2.3 million or $0.23 per diluted share, for the same quarter last year.

The earnings per share data for the fourth quarter and fiscal year ended June 30, 2001 include the 2.5 million shares issued by Qualstar on June 28, 2000 in its initial public offering and an additional 375,000 shares issued on July 18, 2000 as a result of the underwriters’ exercise of their over-allotment option.

William Gervais, Qualstar’s President and CEO, stated, “We are pleased in this difficult business climate that we were able to increase our tape automation business by 9%, going from $42.3 million in the year-ended June 30, 2000, to $46.0 million in the year ending in June 2001. This increase, in our core business, was partially offset by declines in our older legacy tape drive business.”