Qualstar’s Loss Deepens; Seeks ‘Strategic Alternatives’

Qualstar Corp. widened its net loss and had a decrease in revenue for a period of six months, the company announced Wednesday. The Westlake Village manufacturer of data tape and power supply products reported a net loss of $1.9 million (-15 cents) in the period ending Dec. 31, compared with a net loss of $567,000 (-5 cents) in the same period a year earlier. Revenue decreased 28 percent to $4.9 million. Qualstar reported six months of earnings due to a change in the end of its fiscal year to Dec. 31 from June 30. No analysts follow the company. Chief Executive Steven Bronson said he was looking at “strategic alternatives” for the company, including mergers, acquisitions and divestures and in the meantime it is continuing to look at cutting costs and monitoring its cash flow. “Effective May 1, we are consolidating offices for our administrative and data storage sales team into our existing Simi Valley facility and subleasing the Westlake Village office,” Bronson said in a prepared statement. “This move will reduce rent expense by $10,000 per month with the income from the sublease.” Shares closed up 5 cents, or nearly 10 percent, to 57 cents on the Nasdaq.