EXHIBIT 99.1
Contact: David Ruckert or Bob Connors, CFO, 510-490-0717
FIBERSTARS REPORTS 4th QUARTER RESULTS
FREMONT, Calif., February 23, 2005—Fiberstars, Inc. (Nasdaq: FBST) today announced fourth quarter and year 2004 results which are in line with preliminary results released January 18, 2005.
Revenues for the year were $29,725,000, an increase of 9% over sales for the year 2003. The loss for the year was $577,000 ($0.08 per share), vs. a loss of $608,000 ($0.10 per share) in 2003.
Fourth quarter revenues were $7,834,000, an increase of 6% over the fourth quarter of 2003. The net loss in the quarter was $213,000 ($0.03 per share), vs. a net profit of $110,000 ($0.02 per share) in the fourth quarter of 2003.
The balance sheet remained strong, with shifts in assets reflecting Fiberstars seasonal business. Cash at year end was $3,623,000. Trade receivables increased $1.6 million from year ago, and inventories increased $1.8 million vs. 2003, as Fiberstars ramped up for the coming swimming pool season and advance purchases from swimming pool distributors were lower than projected.
David Ruckert, Fiberstars President and CEO, said, “We believe the lower than expected revenue from swimming pool distributors in the fourth quarter reflects a change in buying patterns by distributors and other customers in the market. We are also seeing increased competition in the spa OEM market. Offsetting this, early sales of Fiberstars’ new product in the swimming pool market, a fiber optically lighted mini-laminar flow fountain, have been very positive. These factors make the market more difficult to forecast.
“Fiberstars commercial lighting sales increased 14% in the fourth quarter 2004 vs. the same period of 2003, buoyed by our new energy saving technology, Fiberstars EFO®, which had its best quarter. The outlook for EFO in 2005 is for continued growth.”
Ruckert continued, “Consistent with its strategic plan, the Company has increased first quarter expenses in marketing and R&D. As with all public companies, audit costs have risen. Because the first quarter is typically seasonally low in sales for Fiberstars, the increased expenses are expected to result in a greater loss in the first quarter of 2005 than in 2004. The Company continues to predict sales growth and profitability for the full year 2005.”
Several new fixtures for EFO are being introduced this year at Light Fair, a trade show which will be held in New York in April.
DARPA project work continues to be promising. Fiberstars is working with DARPA and the Navy on the possibility of testing in Navy ships. The Company also expects to commercialize products of the DARPA work as new products in the EFO line during the second half of 2005.
Fiberstars management will host a conference call on Wednesday, February 23, 2005 at 11:30 a.m. EDT (8:30 a.m. PDT) to review the fourth quarter financial results and other corporate events, followed by a Q & A session. Dialing 1-800-507-9434 (US Canada) or 1-706-634-5544 (International/Local) can access the call. The conference ID number is 4092677. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The conference call will also be available over the Internet athttp://www.fiberstars.com in the Investor Relations area of the site or by going tohttp://www.mkr-group.com. A replay of the conference call will be available two hours after the call for the following 7 days by dialing 1-800-642-1687 and entering the following pass code: 4092677. Also, an instant replay of the conference call will be available over the Internet athttp://www.fiberstars.com as of February 23, 2005 and will remain available for 1 year in the Investor Relations area of the site or by going tohttp://www.mkr-group.com.
About Fiberstars
Fiberstars is the world’s leading supplier of fiber optic lighting. Fiberstars products are designed, manufactured and marketed in the commercial lighting, sign and swimming pool and spa markets. Fiber optic lighting provides aesthetic, safety, energy savings and maintenance cost benefits over conventional lighting. Fiberstars has 40 patents on its technologies for fiber optic lighting. Customers include fast food restaurant chains, theme parks and casinos, hotels, retail stores, swimming pool builders, spa manufacturers and many others. Company headquarters are located at 44259 Nobel Dr., Fremont, California. The Company has additional offices in Solon, Ohio, New York City, England and Germany. Telephone 510-490-0719. Web site:www.fiberstars.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the goals and business outlook for 2005 and thereafter, future pool market sales, the benefits of the marketing arrangement with SCP, the expected growth of and percentage of the company to be represented by EFO, expected product development and introductions, expected overall sales growth and profitability, and expected benefits, revenues and products from DARPA and Department of Energy R&D work. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Actual results may differ materially from the results predicted. Risk factors that could affect the Company’s future include, but are not limited to, a slowing of the U.S. and world economy and its effects on Fiberstars’ markets, failure to develop marketable products from new technologies, failure of EFO or other new products to meet performance expectations, unanticipated costs of integrating acquisitions into the Fiberstars operation, delays in manufacturing of products, increased competition, other adverse sales and distribution factors and greater than anticipated costs and/or warranty expenses. For more information about potential factors which could affect Fiberstars financial results, please refer to Fiberstars’ SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2003, and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Fiberstars disclaims any intention or obligation to update or revise any forward-looking statements.
FIBERSTARS, INC.
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
| | | December 31, | | December 31, | |
| | | 2004 | | 2003 | |
ASSETS | | | | | |
| Current assets: | | | | | |
| Cash and cash equivalents | | $ | 3,623 | | $ | 4,254 | |
| Accounts receivable trade, net | | | 7,235 | | | 5,610 | |
| Notes and other accounts receivables | | | 80 | | | 143 | |
| Inventories, net | | | 8,430 | | | 6,618 | |
| Prepaids and other current assets | | | 510 | | | 246 | |
| Total current assets | | | 19,878 | | | 16,871 | |
| | | | | | | | |
| Fixed assets, net | | | 2,599 | | | 2,634 | |
| Goodwill, net | | | 4,267 | | | 4,190 | |
| Intangibles, net | | | 150 | | | 306 | |
| Other assets | | | 141 | | | 118 | |
| Total assets | | $ | 27,035 | | $ | 24,119 | |
| | | | | | | | |
LIABILITIES | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | $ | 2,935 | | $ | 2,205 | |
| Accrued expenses | | | 2,338 | | | 2,413 | |
| Bank overdraft | | | — | | | | |
| Short-term bank borrowings | | | 39 | | | 30 | |
| Total current liabilities | | | 5,312 | | | 4,648 | |
| Other long-term liabilities | | | 7 | | | — | |
| Long-term bank borrowings | | | 472 | | | 521 | |
| Total liabilities | | | 5,791 | | | 5,169 | |
| | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| Common stock | | | 1 | | | 1 | |
| Additional paid-in capital | | | 26,910 | | | 24,531 | |
| Notes receivable from shareholder | | | | | | (224 | ) |
| Cumulative translation adjustments | | | 696 | | | 428 | |
| Retained earnings (accumulated deficit) | | | (6,363 | ) | | (5,786 | ) |
| Total shareholders' equity | | | 21,244 | | | 18,950 | |
| Total liabilities and shareholders’ equity | | $ | 27,035 | | $ | 24,119 | |
FIBERSTARS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share amounts)
| | | Three months ended December 31, | | Twelve months ended December 31, | |
| | | 2004 | | 2003 | | 2004 | | 2003 | |
| | | | | | | | | | |
| Net sales | | $ | 7,834 | | $ | 7,418 | | $ | 29,725 | | $ | 27,238 | |
| Cost of sales | | | 4,734 | | | 4,358 | | | 18,213 | | | 16,897 | |
| Gross profit | | | 3,100 | | | 3,060 | | | 11,512 | | | 10,341 | |
| Operating expenses: | | | | | | | | | | | | | |
| Research and development | | | 586 | | | 522 | | | 1,189 | | | 1,279 | |
| Sales and marketing | | | 2,237 | | | 1,955 | | | 8,491 | | | 7,188 | |
| General and administrative | | | 579 | | | 551 | | | 2,447 | | | 2,435 | |
| | | | | | | | | | | | | | |
| Total operating expenses | | | 3,402 | | | 3,028 | | | 12,127 | | | 10,902 | |
| Income (loss) from operations | | | (302 | ) | | 32 | | | (615 | ) | | (561 | ) |
| | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | |
| Equity in joint venture's income | | | 5 | | | 6 | | | 6 | | | 6 | |
| Interest and other income (expense), net | | | 26 | | | (16 | ) | | (37 | ) | | (39 | ) |
| | | | | | | | | | | | | | |
| Loss before income tax | | | (271 | ) | | 22 | | | (646 | ) | | (594 | ) |
| Benefit from (provision for) income taxes | | | 58 | | | 88 | | | 69 | | | (14 | ) |
| Net income (loss) | | $ | (213 | ) | $ | 110 | | $ | (577 | ) | $ | (608 | ) |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Net income (loss) per share - basic | | $ | (0.03 | ) | $ | 0.02 | | $ | (0.08 | ) | $ | (0.10 | ) |
| | | | | | | | | | | | | | |
| Shares used in computing net income per share - basic | | | 7,349 | | | 6,577 | | | 7,414 | | | 5,993 | |
| | | | | | | | | | | | | | |
| Net income (loss) per share - diluted | | $ | (0.03 | ) | $ | 0.02 | | $ | (0.08 | ) | $ | (0.10 | ) |
| | | | | | | | | | | | | | |
| Shares used in computing net income per share - diluted | | | 7,349 | | | 7,145 | | | 7,414 | | | 5,993 | |
| | | | | | | | | | | | | | |
