Qualstar Corp. missed an analyst’s estimate on earnings in the fiscal fourth quarter as the Simi Valley company goes through a transition to a new executive team.
The Simi Valley manufacturer of tape storage and power supplies reported a net loss of $3.4 million (-28 cents a share) for the quarter ended June 30, compared with a loss of $2.7 million (-22 cents) in the same period a year earlier. Revenue fell 33 percent to $2.9 million.
A single analyst following Qualstar expected a loss of 13 cents, according to Thomson Financial Network.
In June, shareholders voted in an entirely new board of directors who then hired Steven Bronson, the second largest shareholder, as the interim chief executive.
The poor results in the fourth quarter reflect the prior management's plan to build cost structure ahead of the revenue to support it, Bronson said.
“The new management is committed to a more prudent and financially sound plan. Since taking office, we have significantly reduced headcount, consolidated all of our activities into one location in Simi Valley and eliminated non-value-added expenditures,” Bronson said in a prepared statement.
In mid-day trading shares were down 1 cent or less than 1 percent to $1.36 on the Nasdaq.