Qualstar Corporation (QBAK) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $0.06 million, or $ 0.03 a share in the quarter, against a net loss of $0.41 million, or $0.20 a share in the last year period. Revenue during the quarter grew 13.44 percent to $2.44 million from $2.15 million in the previous year period. Gross margin for the quarter expanded 630 basis points over the previous year period to 36.49 percent. Operating margin for the quarter period stood at positive 2.38 percent as compared to a negative 19.30 percent for the previous year period.
Operating income for the quarter was $0.06 million, compared with an operating loss of $0.42 million in the previous year period.
Steven N. Bronson, Chief Executive Officer and President of Qualstar said, “Our combined efforts on improving sales, product offerings and ongoing cost cutting measures has demonstrated our success in executing the turnaround of our company. We are optimistic that we can compete effectively with our lean cost structure and customer centric approach”. Mr. Bronson added, “we are not only pleased with reporting our first quarterly profit in almost seven years but that we achieved our third consecutive quarter of positive cash flow.”.
Working capital declines
Qualstar Corporation has witnessed a decline in the working capital over the last year. It stood at $4.75 million as at Mar. 31, 2017, down 11.23 percent or $0.60 million from $5.35 million on Mar. 31, 2016. Current ratio was at 3.02 as on Mar. 31, 2017, down from 3.47 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 57 days for the quarter from 188 days for the last year period. Days sales outstanding were almost stable at 79 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 33 days for the quarter compared with 160 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 51 for the same period last year.
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