Small Businesses Ignore Risks of Data Protection on Mobile Devices

The survey, produced by an independent market research firm, found that an increasing number of professionals (80 percent) work remotely and rely on personal devices such as smartphones (63 percent), iPads (30 percent) and laptops (80 percent) to access company data.

Despite the expectation that professionals with sensitive client data would understand the associated risks and responsibilities, the numbers reflect that many professionals working remotely, and their companies, are either unaware or too casual about how to keep this information safe and secure.

The study profiled several professions that routinely handle sensitive client information, including medical practices, legal, real estate, and financial service firms. It found that they were at even greater risk compared to generalized SMBs to experience a significant loss of sensitive business information.

The survey found that while over two-thirds of all small-to-midsize businesses with fewer than 1,000 employees have a formal procedure for backing up company data, 87 percent have no formal policy in place regarding employees' use of personal devices for work purposes.

One-third of companies let employees make their own decisions about how to backup company and client data on their devices, and most companies polled do not have backup or data recovery plans that meet modern standards for data protection. Forty-one percent of small businesses readily store and backup company data on portable USB devices - which may be used by family members, get lost, or even stolen.

Businesses Still Unaware of Risks
Legal professionals trailed the field, with 78 percent of lawyers reporting they were either not at all concerned, not that concerned or only somewhat concerned about the security of their company data for employees using personal devices for work. While financial services and medical firms are more concerned about the security of their company data than companies in real estate, construction, and law, the majority (more than two-thirds) in each of those industries expressed a lack of concern for risk of loss and security of company data. This lack of discipline creates unnecessary risk in the protection of company and customer data. The numbers do not lie: very important people have very important data that should be better protected.

Without adequate backup and other data security policies, many businesses are ill prepared to protect company and customer data in the event of a hard drive crash, loss or theft. The survey shows that 30 percent of companies suffered a hard drive crash in the past year. In 70 percent of those cases, data was not fully recovered.

The risk of lost or stolen data is more serious with changing work habits and more employees holding sensitive company data on personal devices. With the start of the new year's business travel season and a larger number than ever of professionals on the road, they carry sensitive company or client data with them on their laptops, tablets and smartphones. The Mozy survey shows that one in nine businesses have experienced the theft of a laptop, and in 98 percent of such cases they were not able to recover all of the lost data.

While just over two-thirds of companies surveyed do have formal backup processes, most are using antiquated methods which are extremely susceptible to failure in the event of an on-site disaster.

Qualstar: Fiscal 4Q10 Financial Results - Tape library revenues at $2.3 million, comparable to the prior year quarter

Qualstar Corporation reported financial results for the fourth quarter and full year of fiscal 2010 ended June 30, 2010.

Fiscal 2010 fourth quarter financial results revenues for the fourth quarter of fiscal 2010 were $4.0 million, compared to $3.8 million for the same quarter of fiscal 2009, an increase of $0.2 million or 5.9 percent. Loss from operations was $627,000 compared to $1.4 million in the fourth quarter of fiscal 2009. Net loss was $575,000 or $(0.05) per basic and diluted share, compared to a net loss of $1.2 million, or $(0.10) per basic and diluted share for the fourth quarter of fiscal 2009.

Tape library segment revenues were $2.3 million for the fourth quarter , comparable to the prior year quarter. Power supply segment revenues were $1.7 million for the quarter, compared to $1.4 million in the prior year quarter, an increase of $0.3 million, or 20.9 percent.

Gross profit increased to $1.28 million, or 32.1 percent of net revenues, for the three months ended June 30, 2010, from $941,000, or 25.0 percent of net revenues, for the three months ended June 30, 2009. The increase in gross profit is attributed to a change in product mix and a decrease in reserves.

Research and development expenses for the fourth quarter of fiscal 2010 were $749,000, or 18.8 percent of revenues, compared to $939,000 or 24.9 percent of revenues, for the fourth quarter of fiscal 2009. The change is due primarily to decreases in R&D material, consultants and compensation related to headcount reductions. Sales and marketing expenses were $528,000, or 13.2 percent of revenues, compared to $640,000 or 17.0 percent of revenues, in the corresponding period last year. The change in sales and marketing expense was due to decreases in advertising and promotion expenses. General and administrative expenses in the fourth quarter of fiscal 2010 were $631,000 or 15.8 percent of revenues, compared to $745,000, or 19.8 percent of revenues, for the same period last year. The change in general and administrative expense was primarily due to decreases in accounting and audit and compensation related to headcount reductions.

Commenting on the Company's business results, Bill Gervais, president and chief executive of Qualstar said: " Consolidated fourth quarter revenues of $4.0 million increased 5.9 percent compared to the fourth quarter last year driven by the continued growth in sales of our XLS enterprise class product line and our N2Power business. In fact, the XLS product line generated strong momentum throughout fiscal 2010 with sales increasing nearly 64 percent for the full year. XLS libraries appeal to a diverse array of end users as the flexibility of our solution allows customers to easily expand their data storage capacity as requirements increase over time. N2Power's full year revenues increased to a record $5.8 million and our products continue to generate strong demand due to worldwide requirements for smaller and more energy efficient power supplies."

Mr. Gervais continued: " Looking ahead, we hope that improving customer demand combined with new product development initiatives will result in a positive impact in fiscal 2011."

For fiscal 2010 full year, Qualstar reported revenues of $15.3 million in fiscal 2010, compared with $17.9 million in fiscal 2009. The Company's net loss in fiscal 2010 was $3.1 million or $(0.25) per basic and diluted share, compared with a net loss in fiscal 2009 of $2.6 million, or $(0.21) per basic and diluted share.

Cash , cash equivalents and marketable securities were $24.3 million at June 30, 2010, down from $27.7 million at June 30, 2009. Inventory, net of reserves, at June 30, 2010 was $4.8 million, compared to $5.8 million at June 30, 2009.