Note 11 - Segment Information

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 

11

 – Segment Information

Based on the provisions of ASC

280,

“Segment Reporting,” and the manner in which the Chief Operating Decision Maker analyzes the business, Qualstar has determined that it has

two

separate operating segments. Segment revenue, loss before income taxes and total assets were as follows, in thousands:

	Twelve Months Ended  December 31,				Six Months Ended December 31,		Twelve Months Ended June 30,
	201 6		201 5		2015		2015
	Audited		Unaudited		Audited		Audited
Revenue
Power Supplies	$	5,601	$	5,842	$	2,463	$	6,330
Data Storage:
Product		1,949		3,063		1,410		4,478
Service		1,867		2,073		1,051		2,094
Total Data Storage		3,816		5,136		2,461		6,572
Total Revenue	$	9,417	$	10,978	$	4,924	$	12,902

	Twelve Months Ended  December 31,						Six Months Ended December 31,			Twelve Months Ended June 30,
	201 6			201 5			2015			2015
	Audited			Unaudited			Audited			Audited
(Loss) before Taxes
Power Supplies	$	(545	)	$	(833	)	$	(524	)	$	(714	)
Data Storage		(665	)		(1,773	)		(1,341	)		(594	)
Total Loss before Income Taxes	$	(1,210	)	$	(2,606	)	$	(1,865	)	$	(1,308	)

	December 31 , 2016		December 31, 2015
Total Assets
Cash and Cash Equivalents	$	3,691	$	3,863
Restricted cash		100		100
Other Assets :
Power Supplies
Accounts receivable, net		1,158		1,009
Inventories, net		444		1,008
Other assets		74		75
		1,676		2,092
Data Storage
Accounts receivable, net		425		621
Inventories, net		916		1,436
Other assets		455		615
		1,796		2,672
Total Assets	$	7,263	$	8,727

	December 31 , 2016			December 31, 2015
Property and Equipment
Power Supplies:
Gross fixed assets	$	534		$	568
Less: accumulated depreciation and amortization		(500	)		(522	)
Net power supply fixed assets	$	34		$	46
Data Storage:
Gross fixed assets	$	933		$	1,248
Less: accumulated depreciation and amortization		(681	)		(848	)
Net data storage fixed assets	$	252		$	400

In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with GAAP. Our

two

segments are power supplies and data storage. The

two

segments discussed in this analysis are presented in the way we internally managed and monitored performance for the

twelve

months ended

December

31,

2016

and

2015,

the

six

months ended

December

31,

2015

and the year ended

June

30,

2015

. Allocations for internal resources were made for the

twelve

months ended

December

31,

2016

and

2015,

the

six

months ended

December

31,

2015

and the year ended

June

30,

2015

. The power supplies segment tracks certain assets separately, and all others are recorded in the data storage segment for internal reporting presentations.

The types of products and services provided by each segment are summarized below

:

Power Supplies

 — The Company designs, manufactures, and sells small, open frame, high efficiency switching power supplies. These power supplies are used to convert AC line voltage to DC voltages, or DC voltages to other DC voltages for use in a wide variety of electronic equipment such as telecommunications equipment, machine tools, routers, switches, wireless systems and gaming devices.

Data Storage

 — The Company designs, manufactures, and sells automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in network computing environments. Tape libraries consist of cartridge tape drives, tape cartridges and robotics to move the cartridges from their storage locations to the tape drives under software control. Our tape libraries provide data storage solutions for organizations requiring backup, recovery and archival storage of critical data.

Geographic Information

Information regarding revenues attributable to the Qualstar’s primary geographic operating regions is as follows, in thousands:

	Twelve Months Ended  December 31,				Six Months Ended December 31,		Twelve Months Ended June 30,
	201 6		201 5		2015		2015
	Audited		(Unaudited)		Audited		Audited
Total Revenue:
North America	$	5,077	$	5,454	$	2,860	$	5,929
Europe		1,955		1,820		713		2,195
Asia Pacific		2,293		3,228		1,211		4,169
Other		92		476		140		609
	$	9,417	$	10,978	$	4,924	$	12,902
Power Supply Revenue:
North America		2,157		2,042		1,001		2,185
Europe		1,474		1,149		487		1,333
Asia Pacific		1,970		2,651		975		2,812
Other		—		—		—		—
	$	5,601	$	5,842	$	2,463	$	6,330
Data Storage Revenue:
North America		2,920		3,412		1,859		3,744
Europe		481		671		226		862
Asia Pacific		323		578		236		1,357
Other		92		476		140		609
	$	3,816	$	5,136	$	2,461	$	6,572

The geographic classification of revenues is based upon the location to which the product is shipped. Qualstar does not have any significant long-lived assets outside of the United States.