Data storage solutions provider Qualstar Corp. (QBAK: Quote) said late last week that it will reduce its workforce by 13 percent. The job cuts are related to the end of life certain unprofitable, legacy product lines and old drive technologies.
California-based Qualstar said that the decision is part of its previously-announced strategic plan and one of several steps being taken to lower the company's breakeven and reach its target of profitability by fiscal year-end. The company expects the job cuts to result in annual savings of around $480 thousand.
Larry Firestone, president and chief executive officer of Qualstar, said, "Although these actions are never easy, this is one of the many steps we are taking to more effectively manage costs and streamline our operations to focus on key market opportunities. Qualstar remains committed to taking the necessary steps to drive revenue growth and improve profitability to deliver value to its shareholders."
Last week, Qualstar reported a net loss for the fourth quarter that widened to $2.6 million or $0.22 per share from net loss of $37 thousand or breakeven per share in the year-ago period. Net revenues for the quarter declined 9 percent to $4.3 million from $4.7 million in the same period last year.
In Tuesday's regular session, QBAK is trading at $1.66, down $0.16 or 9.01 percent from Monday's close.
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by RTT Staff Writer
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